Keystone Realtors IPO consists around 13.86 lakh equity shares at Rs 514-541 apiece in the IPO. Keystone Realtors Limited (Keystone), known as Rustomjee, is a significant player in the real estate industry in the MMR region.

Bidding date14th Nov – 16th Nov’2022
Issue  Size₹635 Cr ( fresh offer  560 Cr and OFS of 75 cr)
Issue Size  (shares. )1,17,37,523
Face Value in Rs. 10
Bid Lot shares27 Shares
Price Band₹ 514- 541
Issue Structure :
Retail35%, 41  L shares, 222 Cr.
Applications for 1x Retail1.52 lac

About Keystone Realtors

  • Keystone Realtors Limited (Keystone), known as Rustomjee, is a significant player in the real estate industry.
  • The company engages in real estate building, development, and other related businesses in India.
  • 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 projects include a comprehensive range of projects under the affordable, mid and mass, aspirational, premium and super premium categories.
  • All projects are offered under the Rustomjee brand.
  • Keystone Realtors has developed
  • The company enters into joint development agreements, redevelopment partnerships with landowners, developers, or society, and slum rehabilitation projects, which require less upfront capital investment than outright land acquisition.
  • As of June 30, 2022, The company have developed over 280 buildings and homes for over 14,000 families.
  • The company as of June 30, 2022, end have 10 ongoing projects aggregating to a saleable area of 5.73 million square feet across super premium -2.34 msf, aspirational -0.43 msf, mid & mass -2.37 msf and affordable -0.59 msf.

Anchor Book: Keystone Realtors IPO

  • Keystone Realtors allocated Rs.190.50 crore worth of shares to a total of 16 anchor investors which resulted in an overall allocation of 30% of the IPO size.  Keystone Realtors Ltd (Rustomjee) allotted 33.34% of the overall anchor allocation to 6 domestic mutual fund schemes across 4 AMCs. The anchor investors are listed below
Anchor Investor% of Anchor Book
Abu Dhabi Investment Authority15.8%
Morgan Stanley India Investment Fund12.4%
SBI Life Insurance Company7.9%
Tata Small Cap Fund7.9%
Quant Value Fund7.9%
Troo Capital Ltd7.9%
Aditya Birla Sun Life Small Cap Fund7.1%
IDFC Emerging Business Fund5.3%
HDFC Life Insurance Company4.7%
IIFL Special Opportunities Fund4.7%
Saint Capital Fund3.7%
Ananta Capital Ventures Fund3.7%
Morgan Stanley India Equity Fund3.3%
Aditya Birla SL Bhavishya Yojana2.6%
BNP Paribas Arbitrage2.6%
IDFC Multi-Cap Fund2.6%

Keystone Realtors IPO : Financials

OPM (%)2.714.113.411.2
Other income7.4433.5547.5157.13
Minority Interest-0.75-3.79-78.67-7.48
Net profit4.97139.62310.4921.98
EPS (Rs) 1.712.37.51.9
Post Issue share Cap113.88
FV in Rs. 10
IPO price541
EPS post IPO FY2211.93
PE 45.3
Market Cap Rs. Cr. 6161
Market Cap/Sales4.85

Salient Points: Keystone Realtors IPO

  • The net proceeds from the issue will be utilized towards repayment or prepayment of certain borrowings availed by the company and/or its subsidiaries.
  • Rs. 342 cr. debt repayment from IPO proceeds to bring down net debt of Rs. 1,200 cr as on 30.6.22.
  • Rs. 75 cr offer for sale is by 3 promoters of Keystone Realtors nd their stake post IPO will drop from 96.7% to drop to 86.7%. Promoters Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta will be participating in the offer for sale.
  • In May 2022, the company raised Rs. 170 cr at Rs. 499.35/share from HDFC and IIFL Funds.
  • The size of the IPO has been reduced from ₹850 crore planned earlier.
  • tKeystone Realtors has strategic partnerships with investors like Lipalton Pte. Ltd. and HDFC Capital Affordable Real Estate Fund-3.


  • Concentrated in MMR region.
  • Less presence in premium segment
  • Only in Residential sector.

Comparison with Peers

Company nameDebt Eq ratioP/B (x) P/E (TTM)MCAP /  sales  RoE
Keystone Realtors Ltd.1.13.742.14.58.8%
DLF Ltd.0.12.755.916.64.8%
Godrej Properties Ltd.0.6492.1174.6%
Macrotech Developers Ltd.0.93.836.94.61.3%
Mahindra Lifespace 0.23.526.917.712.8%
Oberoi Realty Ltd.
Sunteck Realty Ltd.0.22.0817111.31.2%

Keystone Realtors IPO: Assessment

  • After the pressure witnessed during pandemic, the Indian residential sector made a good comeback.
  • Well established customer-centric brand in the Mumbai Metropolitan Region.
  • Keystone Realtors operates via. an asset light business model, wherein it enters into a joint development agreements and re-development agreements with landowners or developers or societies, thereby requiring lower upfront capital expenditure compared to direct acquisition of land parcels.
  • The company in the June 2022 quarter, reported a profit of ₹4.22 crore with a revenue at ₹168.5 crore.
  • Keystone Realtors IPO is coming out at around 8% premium to last transacted price, few months ago,
  • Credit Rating: Term loans were downgraded to BB+ (from BBB- in Oct 20) by rating agency Brickworks.
  • 75% of upcoming development of Keystone Realtors is in an affordable and mass categories, where ticket size is much lower, up to Rs. 1 cr and between Rs. 1-3 cr respectively.
  • If we consider FY22 earning, P/E works out to be 45x. The profitably of Q1FY23 is lower but Q1 results cannot be annaualized.
  • Keystone Realtors IPO is demanding an EV/TTM pre-sales multiple of 2.6x, which compares well with peers.
  • At the IPO price, P/BV works out to 3.7x. This ratio is 3.1x for Oberoi Realty, 3.8x for Macrotech Developers, 3.5x for Mahindra Lifespace developers, 4x for Godrej Properties, and 2.1x for Sunteck Realty. 
  • I have a neutral view on Keystone Realtors IPO. Will keep an eye on subscription numbers till end of Day3.

Keystone Realtors IPO: Apply or Not (My view only)

Risk : Moderate to High
Expected Reward : Low profit to Low/moderate Loss on listing.
Listing Gains : Not sure.
Hold for Medium Term: Other better players in sector may be available at similar valuations.
Subscription : Expected to be low/moderate
Above are my views only. Please do your own diligence.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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