The ₹635-crore public issue of Keystone Realtors will close for public subscription today. The company, which sells properties under the brand ‘Rustomjee’, has fixed the price band of ₹514-541. Investors can bid for a minimum of 27 equity shares and in multiples thereof.
The IPO has been subscribed 41 per cent so far. While the QIB portion received bids for 49 per cent, Retail investors and non-institution portions saw 24 per cent and 72 per cent, respectively.
The IPO of the Mumbai-based company consists of a fresh issue of equity shares aggregating up to ₹560 crore and an offer-for-sale (OFS) worth ₹75 crore by promoters.
As part of the OFS, promoter Boman Rustom Irani plans to sell shares worth up to ₹37.5 crore, while Percy Sorabji Chowdhry and Chandresh Dinesh Mehta will offload shares worth ₹18.75 crore each.
Half of the issue has been reserved for qualified institutional investors, while 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
Market to open on a flat noteAnalysts expect stock-specific trading to continue
Ahead of the issue, the company raised ₹190 crore from anchor investors on Friday. It has decided to allocate 35.21 lakh equity shares to 16 anchor investors at ₹541 apiece for ₹190.5 crore
Anchor investors who participated in the offer included Abu Dhabi Investment Authority, Morgan Stanley, Saint Capital, Aditya Birla Mutual Fund, IDFC Mutual Fund, Tata Mutual Fund, Quant Mutual Fund, SBI Life Insurance, and HDFC Life Insurance Company.
The company plans to use the net proceeds towards funding the repayment/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.
Keystone Realtors has 32 completed projects and has 12 ongoing projects, and 19 forthcoming projects across the Mumbai Metropolitan Region.