Keystone Realtors is entering the capital markets on Monday, 14 November, 2022, with an Initial Public Issue (IPO) of Rs 635 crore, consisting of fresh shares worth Rs 560 crore and an offer-for-sale of Rs 76 crore from the promoters. The price band for the IPO has been fixed at Rs 514-541 per equity share of face value of Rs 10.
Headquartered in Mumbai, Keystone Realtors specialises in housing redevelopment in the Mumbai Metropolitan Region (MMR) under the brand name Rustomjee Developers. Addressing a news conference in Ahmedabad on Thursday, Chairman & Managing Director Boman Rustom Irani said redevelopment has emerged as the main mode of property development in MMR and his company was the first real estate corporate to move into this sector in a big way 2003. “Around 80% of the property development in Bandra to Prabhadevi stretch is redevelopment.There’s a whole movement to make Mumbai young again,” he said.
Keystone has built 280 residential buildings since 1996, in the suburban areas of Bandra, Khar, Andheri, Malad and Dahisar. It has also built townships in Thane and Virar. Mr Irani said the company operates mainly in the joint-venture and joint-development space, which makes it asset light. “Our investment is never more than 10% of the project realisation and we only take up projects we can be sure of completing within five years,” he said.
Addressing the news conference, Keystone’s Chief financial Officer Sajal Gupta said the proceeds of the IPO would go towards strengthening the balance sheet and repaying debt. “We have reduced our debt from a high of Rs 1800 crore to Rs 900 presently. We will bring it down further,” he said.
Asked if he had plans to enter the Gujarat market, Mr Irani said that he had no plans to move beyond the MMR area. “Builders don’t do well when they go into two many locations. MMR is a very strong market and we understand it well,” he said.
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