Keystone Realtors initial public offering (IPO) opens for subscription on Monday and will close on Wednesday. The Mumbai-based real estate developer has set the IPO price range at Rs 514-541 per share.
Keystone Realtors' initial public offering opened on Monday and will close on Wednesday, November 16. The Mumbai-based real estate developer selling properties under the 'Rustomjee' brand has set the initial public offering price range at Rs 514-541 per share. Prior to the initial public offering, the company raised over Rs 190 crore from anchor investors prior to its launch. The broker is seeking to raise Rs 635 crore through initial share sale, consisting of a new equity share issue totaling Rs 560 crore and an Offer to Sell (OFS) of Rs 75 crore. rupees by the promoters. The company's equity shares are expected to be listed on the BSE and NSE stock exchanges on November 24, 2022.
QIB part: 50%
Non-institutional part: 15%
Retail part: 35%
The initial public offering contains a lot size of 27 shares. An individual investor can apply for up to 13 contracts or 351 shares worth Rs 189,891. Axis Capital Ltd. and Credit Suisse Securities (India) Pvt. are the directors responsible for the launch of the book, while Link Intime India Pvt. Ltd. is the registrant. Keystone Realtors intends to use the net proceeds to finance the repayment and prepayment of loans to the tune of Rs 341.6 crore, as well as to finance the acquisition of future real estate projects and general corporate purposes, according to RHP.
Should You Register for the Keystone Realtors IPO?
Choice Brokerage: Sign Up with Caution
At the higher price range, KRL has an EV/TTM multiple for pre-sales of 2.6x, which appears to be a discount to the peer average. Therefore, the issue appears to be attractively priced. However, given its 76.6% sequential drop in pre-sales business (compared to an average 3% increase in peer business), we assign a "Subscribe With Caution" rating to this issue."
Reliance Stock Brokerage: Subscribe
"While the company has been inconsistent with its earnings highs and lows in recent years, we believe the rebound in the real estate sector and the easing of inflationary pressure bode well for Keystone. From an equity position standpoint leadership in the Mumbai Real Estate Market and a strong portfolio of around 35 million sq ft from salable space, a proven track record with good finances and an attractive valuation, we recommend 'subscribing' to this issue.
Hem Securities: A long-term subscription
“A scalable, asset-light corporate model that leads to profitability and stable financial performance coupled with proven project delivery capabilities with in-house functional experience has strong stakeholder management capabilities across the spectrum of project development; therefore, with all of the above in mind, we recommend the term 'Long Subscription' "on the issue".
KRChoksey Stocks and Stocks: Subscribe
On the margins front, the Company has a lot of room to expand as current margins include quite a bit of one-time expenses, which has impacted margins. In this way, management is confident of achieving competitive margins in the coming years. Keystone reported 61.7 percent compound annual growth during fiscal 20-22 in presale sales. Keystone, under its Rustomjee brand, is a strong player. The company will take advantage of the opportunities available with the support of its joint partners.”
Founded in 1995, Keystone Realtors is one of the leading real estate developers. As of March 31, 2022, had 32 completed projects, 12 ongoing projects and 19 upcoming projects in the Mumbai Metropolitan Region (MMR), which includes a wide range of affordable, mid-sized, group, aspirational, premium and super-premium projects. categories, all under its Rustomjee brand.
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