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HomeMutual FundKeystone Realtors Restricted IPO, do you have to make investments? – myMoneySage...

Keystone Realtors Restricted IPO, do you have to make investments? – myMoneySage Weblog

Keystone Realtors Restricted included in 1995, is among the distinguished actual property builders. It has a market share of 28% in Khar, 23% market in Juhu, 11% in Bandra East, 14% in Virar, 3% in Thane, and 5% in Bhandup when it comes to absorption (in items) from 2017 to 2021. As a part of the enterprise mannequin, the corporate is coming into into joint growth agreements, redevelopment agreements with landowners or builders, or societies, and slum rehabilitation tasks, which requires decrease upfront capital funding in comparison with the direct acquisition of land parcel. It has a diversified suite of tasks throughout a variety of worth factors, and a presence in a number of micro markets.

Keystone Realtors Limited IPO

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As of June 30, 2022, there have been 32 Accomplished Tasks, 12 ongoing Tasks, and 21 Forthcoming Tasks throughout the Mumbai Metropolitan Area that features a complete vary of tasks underneath the inexpensive, mid and mass, aspirational, premium, and tremendous premium classes, all underneath the Rustomjee model.

Promoters & Shareholding:

Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta are the corporate promoters.

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Public Situation Particulars:

Supply on the market: OFS of approx. 1,386,322 fairness shares at Rs. 10, aggregating as much as Rs. 75 Cr and contemporary of approx. 10,351,201 fairness shares at Rs. 10, aggregating as much as Rs. 560 Cr.

Complete IPO Measurement: Rs. 635 Cr.

Value band: Rs. 514 – Rs. 541.

Goal: For reimbursement/ prepayment of sure borrowings and funding acquisition.

Bid qty: minimal of 27 shares (1 lot) for Rs. 14,607 and most of 13 tons.

Supply interval: 14th Nov 2022 – 16th Nov 2022.

Date of itemizing: 24th Nov 2022.


  • Nicely-established customer-centric model within the Mumbai Metropolitan Area.
  • Asset-light and scalable mannequin leading to profitability and steady monetary efficiency.
  • Demonstrated undertaking execution capabilities with in-house useful experience.
  • Sturdy deal with sustainable growth.
  • Skilled and skilled administration workforce.


  • Depending on actual property, significantly within the Mumbai Metropolitan area.
  • The enterprise is capital-intensive.
  • Scarcity of land for growth within the MMR or a major enhance in the price of such land or transferable growth rights out there for growth within the MMR might adversely impression its enterprise prospects and monetary efficiency.

Subscribe or keep away from?

Sectorial outlook – In India, the actual property business is among the highest employment mills after the agriculture sector. This may be attributed to the escalating demand for residential properties as a result of fast urbanization and inflating disposable incomes of people. Furthermore, the growing want for up to date workplace areas and the rising development of city and semi-urban lodging are performing as different important growth-inducing elements. Moreover, the increasing e-commerce sector within the nation is catalyzing the demand for warehousing services, which is offering a constructive thrust to the market. Moreover this, with the rising use of telecommunication companies and the implementation of 5G and knowledge localization norms, there’s a rise within the want for knowledge storage services. This, in flip, is positively influencing the demand for resilient knowledge heart infrastructure and consequently bolstering market development. Aside from this, numerous initiatives undertaken by the Authorities of India, reminiscent of investments in sensible metropolis tasks and tax exemption for curiosity on housing loans, are anticipated to create profitable enterprise alternatives for business buyers within the nation.

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The financials (income and internet revenue) are proven within the graph beneath:

Valuation – For the final 3 years common EPS is Rs. 15.66 and the P/E is round 36x on the higher worth band of Rs. 541. The EPS for FY22 is Rs. 14 and the P/E is round 38.6x. If we annualize Q1-FY23 EPS of Rs. 0.49, P/E is round 276x. It has Macrotech Builders (286x), Godrej Properties (91x), Oberoi Realty (25x), and Sunteck Realty (163x) as its listed friends as per the RHP. The corporate’s P/E is between 36x and 276x. The margins and revenues have been inconsistent.

Advice – The Firm is among the distinguished gamers in the actual property sector in India and presents throughout the Mumbai Metropolitan Area with complete, inexpensive tasks and premium & super-premium classes going ahead the realty business is anticipated to see a wholesome uptick in redevelopment tasks Thus, Keystone, underneath its model title Rustomjee, a robust participant will profit from the alternatives. After contemplating all of the elements the itemizing nonetheless appears costly based mostly on the present valuation therefore we might suggest buyers with a high-risk urge for food and money surplus to “Subscribe” to this IPO from a medium to long-term perspective.


This text shouldn’t be construed as funding recommendation, please seek the advice of your Funding Adviser earlier than making any funding resolution.

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