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Keystone Realtors launches its IPO

Source: ET Realty & LiveMint

Keystone Realtors Ltd (KRL), which sells properties under the brand 'Rustomjee’, launched its initial public offering (IPO) on Monday, November 14, 2022. Investors will be allowed to subscribe till Wednesday, November 16, 2022. The Mumbai-based real estate developer has fixed a price band of INR 514-54/- a share. The company is looking to raise ?635 crore through the initial share sale, which consists of a fresh issue of equity shares aggregating up to ?560 crore and an Offer-For-Sale (OFS) worth ?75 crore by promoters.

According to data from the NSE, on its first day the issue has been subscribed 8 percent. The IPO received bids for 7,24,599 shares against 86,47,858 shares on offer. The category catering to Retail Individual Investors (RIIs) was subscribed at 12 percent and the non-institutional investors subscribed at 11 percent.

The company intends to utilise the net proceeds towards funding the repayment and prepayment of borrowings to the tune of ?341.6 crore as well as towards funding the acquisition of future real estate projects and general corporate purposes. The equity shares of the company are expected to be listed on stock exchanges BSE and NSE on Thursday, November 24, 2022.

The company on Friday said it has collected over ?190 crore from anchor investors ahead of its issue. Saint Capital, Morgan Stanley and Abu Dhabi Investment Authority account for nearly 35 percent of these anchor investments. Closer to home, SBI Life Insurance, HDFC Life Insurance Company and domestic mutual funds such as IDFC Mutual Fund, Tata Mutual Fund, Quant Mutual Fund and Aditya Birla Mutual Fund are said to have participated.

Headed by Boman Rustom Irani, Keystone Realtors is one of the prominent real estate developers of the country. Founded in 1995, they company has so far completed over 32 projects, while having 12 on going projects and 19 forthcoming coming projects across the Mumbai Metropolitan Region (MMR), that includes a comprehensive range of projects under the affordable, mid, and mass, aspirational, premium, and super premium categories, all under their Rustomjee brand.

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