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Keystone Realtors IPO Review: Keystone Realtors Limited is coming up with its Initial Public Offering. The IPO will open for subscription on November 14th, 2022, and close on November 16th, 2022. It is looking to raise Rs.635 Crores.

This article will look at the Keystone Realtors IPO Review 2022 and analyze its strengths and weaknesses. Keep reading to find out! 

Keystone Realtors IPO Review – About The Company

Keystone Realtors Limited is one of the most well-known real estate developers in the micro market in India. It is primarily engaged in the business of real estate construction, development, and other related activities in India.

Keystone Realtors IPO Review - Total Assets

As of June 30, 2022, the company has completed 32 Projects, is currently working on 12 projects, and has 21 Forthcoming Projects across the Mumbai Metropolitan Region (“MMR”) that includes a comprehensive range of projects under the super-premium, premium, aspirational, mid and mass, and affordable categories under the Rustomjee brand.

Keystone Realtors IPO Review - Revenue

The company is entering into joint development agreements, redevelopment agreements with landowners or developers or societies, and slum rehabilitation projects that will require lower upfront capital investment compared to the direct acquisition of land parcels.

Keystone Realtors IPO Review - Profits

Services provided by the company:

The Company is engaged in the business of real estate construction, development, and other related activities in India.

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The company has a diversified suite of projects across a huge range of price points, and a presence in many micro-markets. Keystone Realtors has experience in developing high-value standalone buildings, gated communities, lifestyle projects, fully integrated townships, re-developments, and stalled projects. The company has developed over 280 buildings and homes for over 14,000 families

Keystone Realtors IPO Review – Financial Highlights

Financials Image

(Source: DRHP of the company)

Keystone Realtors IPO Review – Industry Overview

The real estate industry is one of the most recognized industries globally. It is the second-highest employment generator after the agriculture sector in India. The real estate market is expected to grow to Rs. 65,000 crores by the end of 2040. 

By the end of 2030, the Indian real estate sector is expected to reach US$ 1 trillion in market size by 2030, an increase from US$ 200 billion in 2021, and contribute 13% to the country’s GDP by 2025 

Strengths

  • The Company has a reputable customer-centric brand name in the Mumbai Metropolitan Region.
  • The company has an asset-light and scalable business model which results in increased profitability and stable financial performance.
  •  The company has demonstrated project management skills s with in-house functional expertise.
  • The company has technology-oriented operations resulting in operational efficiency and enhancing customer experiences.
  • The company comprises of Experienced Promoters, qualified senior management, good corporate governance, and a committed employee base.

Weaknesses

  • The company is significantly reliant on the performance of the real estate market generally in India and particularly in the Mumbai Metropolitan Region. Varying market conditions can impact the company’s ability to sell its projects which will have an impact on its financial performance.
  • The inability to complete ongoing and forthcoming Projects by their respective expected completion dates could also impact the company’s financial performance
  • An increase in the prices relating to taxes and levies or delay or disruption in the supply of construction materials could adversely affect the estimated construction cost and timelines and result in cost overruns
  • Shortage of land for development in the MMR or a significant increase in the cost of such land or transferable development rights available for development in the MMR may adversely impact the company’s business prospects and financial performance.
  • There are some outstanding litigation proceedings involving the Company, Subsidiaries, Joint Ventures, Associates, Directors, and Promoters which may impact the company’s reputation, business, financial condition, results of operations, and cash flows.

Keystone Realtors IPO Review – Key IPO Information

ParticularsDetails
IPO Size₹635.00 Cr
Fresh Issue₹560.00 Cr
Offer for Sale (OFS)₹75.00 Cr
Opening dateNov 14, 2022
Closing dateNov 16, 2022
Face Value₹10 per share
Price Band₹514 to ₹541 per share
Lot Size27 Shares
Minimum Lot Size1(27)
Maximum Lot Size13(351)
Listing DateNov 24, 2022

Promoters of the company: Percy Sorabji Chowdhry, Boman Rustom Irani, and Chandresh Dinesh Mehta

Book Running Lead Manager: Axis Capital Limited, Credit Suisse Securities (India) Private Limited

Registrar to the Offer: Link Intime India Private Limited 

The Objective of the Issue

The net proceeds from this issue will be utilized for the following purposes:

  • Repayment/ prepayment, in whole or part, of certain borrowings that are availed by the Company and its Subsidiaries
  • To fund acquisitions of future real estate projects and general corporate purposes

In Closing

This article looked at the details of Keystone Realtors Review 2022. Analysts remain divided on the IPO and its potential gains. This is a good opportunity for investors to look into the company and analyze its strengths and weaknesses. That’s it for this post.

Are you applying for the IPO? Let us know in the comments below.

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