Keystone Realtors
Mainboard₹635 Cr issue
+2.59%
Listing gain over issue price
Issue size
₹635 Cr
1 lot at cut-off
₹14,607
Lot size
27shares
Open
14 Nov 2022
Close
16 Nov 2022
Allotment
21 Nov 2022
Listing
24 Nov 2022
Listing performance
Issue price
₹541
Listed at
₹555
Listing-day close
₹557.80
Latest price
₹336.95
Close on 23 Oct 2026
Listing gain
+2.59%
Return since issue
-37.72%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 14 Nov 2022 – 16 Nov 2022
- Listing date
- 24 Nov 2022
- Face value
- ₹10 per share
- Issue price
- ₹541 per share
- Lot size
- 27 shares
- Total issue size
- ₹635 Cr
- Market cap at offer price
- ₹6,161 Cr
- Promoter holding
- 96.71% → 86.70% pre-issue → post-issue
- ISIN
- INE263M01029
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- 702, Natraj, MV Road Junction, Western Express Highway, Andheri (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 35,21,255 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 27 shares per lot, in multiples, at ₹541
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 27 | ₹14,607 |
| Retail (max) | 13 | 351 | ₹1,89,891 |
| S-HNI (min) | 14 | 378 | ₹2,04,498 |
| S-HNI (max) | 68 | 1,836 | ₹9,93,276 |
| B-HNI (min) | 69 | 1,863 | ₹10,07,883 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
35,21,255
Anchor portion
₹191 Cr
at ₹541 per share
Valuation and performance
Valuation at offer price
₹541 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 13.96 | — |
| P/E (×) | 38.75 | — |
| Market cap | — | ₹6,161 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 14.97%
- Debt / equity
- 1.62
- EBITDA margin
- 16.60%
- NAV per share
- ₹93.24
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Keystone Realtors
Keystone Realtors Limited (formerly Rustomjee) is incorporated as a private company on November 6, 1995 and converted to public company on May 6, 2022. As of June 30, 2022, the company had 32 Completed Projects, 12 Ongoing Projects and 21 Forthcoming Projects across the Mumbai Metropolitan Region (MMR). The company has developed 20.22 million square feet of high-value and affordable residential buildings, premium gated estates, townships, corporate parks, retail spaces, schools, iconic landmarks and various other real estate projects. The company generates revenue primarily from the sale of residential units in its projects. As of June 30, 2022, all projects were located within the MMR and the company generated all revenue from operations from the MMR.
Company Analysis
from RHPKeystone Realtors Limited is a real estate developer focused on high-value residential buildings, premium gated estates, townships, corporate parks, retail spaces, and other real estate projects primarily in the Mumbai Metropolitan Region.
Keystone Realtors Limited (formerly Rustomjee) is incorporated as a private company on November 6, 1995 and converted to public company on May 6, 2022. As of June 30, 2022, the company had 32 Completed Projects, 12 Ongoing Projects and 21 Forthcoming Projects across the Mumbai Metropolitan Region (MMR). The company has developed 20.22 million square feet of high-value and affordable residential buildings, premium gated estates, townships, corporate parks, retail spaces, schools, iconic landmarks and various other real estate projects. The company generates revenue primarily from the sale of residential units in its projects. As of June 30, 2022, all projects were located within the MMR and the company generated all revenue from operations from the MMR.
Real Estate DevelopmentResidential ConstructionCommercial Real EstateRetail Real Estate
Objects of the Issue
- Repayment/prepayment, in full or part, of certain borrowings availed by our Company and its Subsidiaries ₹ 3,416.00 million p.24
- Funding acquisition of future real estate projects and general corporate purposes [●] p.24
- Repayment/ prepayment, in full or part, of certain borrowings availed by our Company and/or certain of our Subsidiaries ₹ 3,416.00 million p.114
- Funding acquisition of future real estate projects and general corporate purposes p.114
- —
Issue Structure
- Total Issue
- Up to ₹ 6,350.00 million
- Fresh Issue
- Up to ₹ 5,600.00 million
- Offer for Sale
- Up to ₹ 750.00 million
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares
- Face Value
- ₹ 10 each
Business Model
The company develops real estate projects by acquiring land or entering into joint development agreements, joint venture arrangements, and redevelopment agreements. Revenue is generated from the sale of residential units in Completed and Ongoing Projects. The company also generates revenue from other real estate projects including commercial and retail spaces. Construction costs are typically 72-79% of revenue from operations.
Business Segments
High-value and affordable residential buildings and premium gated estates
Residential projects priced above ₹150 million per unit
Residential projects priced between ₹70-150 million per unit
Residential projects priced between ₹30-70 million per unit
Residential projects priced between ₹10-30 million per unit
Residential projects priced below ₹10 million per unit
Commercial office and retail development projects
Development and sale of residential apartments across various price points including luxury gated communities and redevelopment projects
Development of commercial premises and mixed-use projects
Development of integrated townships with residential, commercial and amenity components
Construction of residential and commercial buildings and all related and incidental activities including land development
Development and sale of residential units across affordable, mid and mass, aspirational, premium and super premium categories under the Rustomjee brand
Development of fully integrated townships including Rustomjee Urbania in Thane and Virar Global City with amenities, clubhouses, amusement parks and entertainment facilities
Development of commercial spaces, corporate parks, retail spaces and other commercial real estate projects
Residential real estate development, sale of land/development rights, and project management services
SWOT Analysis
Strengths
- • Prominent developer in MMR micro-markets with significant absorption(p.24)
- • Extensive project portfolio across development stages(p.24)
- • Substantial cumulative development experience(p.24)
- • Low unsold inventory in completed projects indicating strong sales performance(p.40)
- • Established market presence in MMR for revenue generation(p.39)
- • Established brand presence in MMR for two and a half decades with strong construction quality and execution capabilities(p.61)
- • Diversified project portfolio across multiple segments (affordable to super premium) with 65 projects (32 completed, 12 ongoing, 21 forthcoming) across MMR(p.61)
- • Significant pre-sales growth trajectory with pre-sales increasing from ₹10,091.42 million in Fiscal 2020 to ₹26,392.59 million in Fiscal 2022(p.54)
- • Leading market position in premium micro-markets with strong brand equity(p.190)
- • Ability to command premium pricing across portfolio(p.196)
- • Asset-light business model with minimal upfront capital investment(p.198)
- • Demonstrated project execution capabilities and track record(p.201)
- • Diversified portfolio across price segments and geographies(p.191)
- • Strong customer centricity and brand reputation(p.193)
- • Integrated development model with in-house expertise across all stages(p.198)
- • Expertise in redevelopment segment with strong market position(p.195)
- • Sophisticated project management via BIM technology and advanced ERP systems(p.217)
- • Established relationships with marquee architects, contractors, and specialized consultants(p.217)
- • In-house multidisciplinary design expertise including horticulturists, BIM specialists, and interior designers(p.217)
- • Significant improvements in sales productivity per employee(p.217)
- • Comprehensive digital sales and marketing infrastructure with 1,542 channel partners(p.217)
- • Integrated sustainability certifications in multiple projects(p.219)
- • Low employee attrition rates indicating workforce stability(p.219)
- • Experienced board with deep real estate expertise(p.276)
- • Established governance structure with independent oversight(p.280)
- • Consistent presence of promoter management in the business(p.276)
- • Prominent market position in micro-markets with significant market share(p.419)
- • Diversified portfolio across price segments and project types(p.419)
- • Capital-efficient business model leveraging joint development agreements(p.420)
- • Integrated in-house development capabilities across project lifecycle(p.420)
- • Technology integration across operations and customer engagement(p.420)
- • Strong brand reputation with track record of award-winning projects(p.419)
- • Strategic investor partnerships and professional management team(p.420)
Weaknesses
- • Geographic concentration entirely in MMR creates dependency on single market(p.39)
- • High exposure to residential segment with limited diversification(p.45)
- • Significant unsold inventory in ongoing projects(p.40)
- • Construction costs rising significantly as percentage of revenue(p.45)
- • Reliance on unsecured loans from promoters and related entities(p.31)
- • Substantial contingent liabilities relating to tax and regulatory matters(p.27)
- • Material uncertainty regarding going concern status of jointly controlled operations Fortune Partners and Lok Fortune Joint Venture due to accumulated losses and net cash losses(p.46)
- • Significant unsecured loans of ₹5,949.23 million (as of October 15, 2022) with many repayable on demand, creating liquidity risk(p.46)
- • Negative operating cash flows of ₹1,095.51 million in Fiscal 2022, indicating cash burn despite revenue generation(p.48)
- • Material errors identified in historical audited consolidated financial statements for year ended March 31, 2021 relating to accounting for loss of control of Kapstone Constructions Private Limited(p.51)
- • Total financial indebtedness of ₹15,217.96 million as of October 15, 2022, with significant annual financing costs and restrictive covenants(p.59)
- • Dependence on brand name 'Rustomjee' which is owned by Promoter Boman Rustom Irani and licensed to company; termination could adversely affect business(p.61)
- • Outstanding litigation of ₹3,273.26 million against the Company and significant litigation across subsidiaries and joint ventures totaling ₹4,169.19 million(p.58)
- • Attrition rate increased to 14.30% in Fiscal 2022 from 9.12% in Fiscal 2021, indicating employee retention challenges(p.70)
- • High leverage relative to equity(p.198)
- • Substantial unsold inventory in stalled projects portfolio(p.187)
- • Declining operating margins in recent periods(p.192)
- • Negative operating cash flow in Fiscal 2022(p.193)
- • Concentration of pre-sales in premium category limiting mass-market penetration(p.205)
- • High personal guarantees from promoters on debt facilities(p.239)
- • Deferred regulatory approval payment obligations creating contingent liabilities(p.223)
- • Concentration of projects in few key locations (MMR region)(p.216)
- • Dependence on external contractors and vendors for execution(p.217)
- • License-based trademark dependency rather than ownership(p.218)
- • Material uncertainty regarding going concern of joint venture operations(p.300)
- • Accumulated losses in joint venture entity(p.300)
- • Prior material uncertainty in joint venture financing resolved only by debt restructuring(p.302)
- • Dependence on complex joint venture and subsidiary arrangements(p.316)
- • Geographic concentration with all operations in MMR(p.423)
- • Significant debt levels and leverage relative to equity(p.424)
- • Negative operating cash flows in Fiscal 2022 despite revenue growth(p.421)
- • Material uncertainty regarding going concern for jointly controlled operations(p.410)
- • Stalled/redevelopment project risks including operational challenges(p.410)
- • Significant litigation exposure across multiple properties and joint ventures(p.476)
- • Multiple buyer complaints and litigation on completed and ongoing projects(p.483)
- • Substantial tax disputes pending across company and joint ventures(p.481)
- • Land title and ownership disputes affecting key projects(p.476)
- • Criminal litigation and fraud allegations involving joint venture(p.478)
Opportunities
- • Growing household formation and urbanization trend in India(p.24)
- • Increasing home ownership and urban housing shortage(p.24)
- • Key industry growth drivers supporting sector expansion(p.24)
- • Significant forthcoming project pipeline for future growth(p.40)
- • Declining unsold inventory in MMR indicating improving market conditions(p.40)
- • Significant land inventory for future growth with 70.44% of developable area in 21 forthcoming projects (20.49 million sq ft), providing substantial pipeline(p.52)
- • Strong pre-sales momentum with 1,241 units sold in Fiscal 2022 (0.49 million sq ft) providing revenue visibility for future periods(p.54)
- • Post-COVID stimulus measures including reduction of stamp duty, lower interest rates and increased FSI have positively impacted pre-sales(p.53)
- • Expansion into mid and aspirational segments with growth strategy focused on developing real estate projects in micro-markets within MMR(p.62)
- • Capital from IPO (₹5,600 million fresh issue + ₹750 million offer for sale) to repay borrowings and fund future acquisitions(p.56)
- • Expansion in mid and mass market segments with significant market share available(p.205)
- • Growth from upcoming infrastructure projects and connectivity improvements(p.206)
- • Opportunity in sea-facing properties from CRZ norm relaxation(p.206)
- • Substantial stalled project takeover opportunities(p.214)
- • Strong township demand and pricing premium in market(p.184)
- • Forecast strong supply and absorption growth through 2026(p.151)
- • Capacity expansion and better regulatory environment through revised fire safety norms(p.225)
- • Increased FSI enabling unit size expansion and developable area growth(p.223)
- • Green building and sustainable development demand through incentivized policies(p.227)
- • Strategic investor partnerships enabling access to capital and expansion(p.233)
- • Technology-enabled customer acquisition through digital channels and virtual platforms(p.217)
- • Expansion of real estate development portfolio through joint ventures(p.272)
- • Multiple group companies engaged in real estate development across locations(p.292)
- • Strong presales growth and market demand recovery(p.421)
- • Expansion across diverse project categories and geographies within MMR(p.419)
- • Affordable housing segment growth through strategic investor partnerships(p.420)
- • Environmental sustainability and green building certifications creating competitive differentiation(p.420)
- • Large-scale integrated township projects with long-term revenue potential(p.420)
- • Growing housing affordability driven by RBI repo rate reductions(p.424)
Threats
- • Cyclical MMR real estate market sensitive to external factors(p.40)
- • Significant volatility in construction material prices and supply(p.45)
- • Project completion delays from regulatory and approval dependencies(p.41)
- • COVID-19 pandemic impact on sales enquiries and construction activities(p.40)
- • Market illiquidity limiting ability to respond to changing conditions(p.40)
- • Volatile MMR market with fluctuating supply levels(p.39)
- • Title-related litigations affecting project development(p.43)
- • Shortage of developable land in MMR with limited availability, high cost, and intense competition affecting project economics(p.47)
- • Restrictions on floor space index (FSI) and transferable development rights (TDRs) changes could impact project development feasibility and costs(p.47)
- • COVID-19 pandemic continues to pose operational risks with potential for future waves impacting construction activities and project timelines(p.53)
- • Revenue recognition subject to completion of projects and receipt of occupancy certificates, creating timing uncertainty and volatility(p.55)
- • Real estate market cyclicality and economic downturns could adversely affect sales, pricing, and construction financing availability(p.73)
- • Changes in taxation laws including GST amendments, stamp duty variations, and capital gains treatment could increase costs and reduce affordability(p.76)
- • RERA compliance requirements and mandatory project registration impose obligations and restrictions on developer operations including escrow accounts(p.76)
- • Competition from national and regional developers with pan-India presence competing for land, sales, and skilled personnel(p.65)
- • Foreign investment restrictions including FDI sectoral limits and state-level approval requirements limiting access to foreign capital(p.71)
- • Interest rate fluctuations affecting customer financing costs and affordability of residential properties, particularly for middle-income segments(p.63)
- • Project delays exposing company to penalty clauses under customer agreements and potentially resulting in cancellations and refunds(p.62)
- • Government eminent domain and land acquisition rights under Land Acquisition Act could result in loss of land with potentially inadequate compensation(p.74)
- • Inventory overhang and supply-absorption imbalance risk(p.148)
- • Market concentration risk in top seven micro-markets(p.150)
- • Competitive intensity with branded developers commanding premium(p.150)
- • Redevelopment project challenges and stakeholder coordination complexity(p.179)
- • Land acquisition and regulatory compliance risks in dense urban markets(p.179)
- • Complex and evolving RERA compliance requirements and penalties(p.221)
- • Environmental approval and clearance mandates affecting project timelines(p.228)
- • Coastal regulation zone restrictions limiting certain development activities(p.229)
- • Stringent building and safety code compliance requirements across multiple jurisdictions(p.226)
- • Foreign exchange management and investment exit restrictions(p.223)
- • Land acquisition regulatory framework and compensation requirements(p.221)
- • Developer replacement risk in major joint venture projects(p.300)
- • Regulatory oversight and delisting risk of subsidiaries(p.276)
- • External oversight dependency for significant projects(p.272)
- • Continued COVID-19 pandemic impacts on operations and demand(p.421)
- • Rising interest rates reducing housing affordability(p.424)
- • Regulatory framework complexities and approvals risk(p.424)
- • Intense competition from larger regional and national developers(p.425)
- • Dependence on MMR real estate market conditions and economic cycles(p.423)
- • Construction delays from unforeseen circumstances and project timelines(p.423)
- • Regulatory action and unauthorized excavation penalties against joint venture(p.479)
- • Stamp duty evasion allegations on development management agreement(p.477)
- • Regulatory housing society disputes affecting completed projects(p.477)
- • Tenant encroachment disputes on joint venture land(p.479)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Boman Rustom Irani | Promoter/Selling Shareholder | 46.91% | — |
| Percy Sorabji Chowdhry | Promoter/Selling Shareholder | 23.46% | — |
| Chandresh Dinesh Mehta | Promoter/Selling Shareholder | 23.46% | — |
| Boman Rustom Irani | Promoter | — | — |
| Percy Sorabji Chowdhry | Promoter | — | — |
| Chandresh Dinesh Mehta | Promoter | — | — |
| Boman Rustom Irani | Promoter | 46.91% | — |
| Percy Sorabji Chowdhry | Promoter | 23.46% | — |
| Chandresh Dinesh Mehta | Promoter | 23.46% | — |
| Dreamz Dwellers LLP | Promoter Group | 2.80% | — |
| Boman Rustom Irani | Promoter/Chairman and Managing Director | — | — |
| Boman Rustom Irani | Promoter | — | — |
| Percy Sorabji Chowdhry | Promoter | — | — |
| Chandresh Dinesh Mehta | Promoter | — | — |
| Boman Rustom Irani | Promoter | 48,565,620 shares (as stated in document; percentage = 48,565,620 / 103,631,233 ≈ 46.86%) | — |
| Percy Sorabji Chowdhry | Promoter | 24,282,810 shares | — |
| Chandresh Dinesh Mehta | Promoter | 24,282,810 shares | — |
| Boman Rustom Irani | Selling Shareholder | — | — |
| Percy Sorabji Chowdhry | Selling Shareholder | — | — |
| Chandresh Dinesh Mehta | Selling Shareholder | — | — |
Leadership
Boman Rustom Irani · Chairman and Managing Director
Chandresh Dinesh Mehta · Executive Director
Percy Sorabji Chowdhry · Executive Director
Sajal Gupta · Group Chief Financial Officer and Head Corporate Strategy
Bimal K Nanda · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Keystone Realtors IPO FAQs
What is the lot size of Keystone Realtors IPO?
The minimum lot size of Keystone Realtors IPO is 27 shares. One lot costs ₹14,607 at the cut-off price.
When does Keystone Realtors IPO open and close?
Keystone Realtors IPO opened for subscription on 14 Nov 2022 and closed on 16 Nov 2022.
What is the listing date of Keystone Realtors IPO?
Keystone Realtors IPO listed on 24 Nov 2022.