Keystone Realtors Ltd, a real estate developer of the Rustomjee Group, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹850 crore via initial public offering (IPO). The company’s IPO comprises a fresh issue of equity shares aggregating up to ₹700 crore and an offer for sale (OFS) of shares aggregating up to ₹150 crore.

Promoter Boman Rustom Irani will be offloading shares worth up to ₹75 crore as part of the OFS. Promoters Percy Sorabji Chowdhry and Chandresh Dinesh Mehta will be selling shares worth up to ₹37.5 crore each as part of the offer. Dreamz Dwellers LLP will be offloading 28.99 lakh shares while Viking Trust will be selling 45,790 shares. Chandresh Mehta Family Trust and Percy Chowdhry Family will be selling 22,890 shares each.

The company, in consultation with the book running lead managers, is also considering a pre-IPO placement of up to ₹140 crore. If the pre-IPO placement is undertaken, the size of the fresh issue will be reduced accordingly.

Projects by Keystone

As of March 31, 2022, the company had 32 completed projects, 12 ongoing projects, and 19 forthcoming projects across the Mumbai Metropolitan Region. As of March 31, 2022, Keystone has developed 20.05 million sq ft of residential buildings, premium gated estates, townships, corporate parks, retail spaces, schools, iconic landmarks, and various other real estate projects.

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The company plans to use around ₹427 crore from the proceeds for the repayment/prepayment, in full or part, of certain borrowings availed by it and its subsidiaries. Proceeds from the issue will also be used for funding acquisition of future real estate projects and general corporate purposes, as per the draft papers. Axis Capital Limited Credit Suisse Securities (India) Private Limited are book running lead managers for the issue.

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