Keystone Realtors Limited which operates under the brand ‘Rustomjee’ and is one of the prominent real estate developers (in terms of absorption in number of units) in the micro markets that it is present in, will open its initial public offering on November 14, 2022.

The Price Band of the offer has been fixed at Rs 514 to Rs 541 per Equity Share of face value Rs 10 each. Bids can be made for a minimum of 27 Equity Shares and in multiples of 27 equity shares thereafter.

The initial public offering comprises a Fresh Issue aggregating up to Rs 5,600.00 million and an Offer for Sale of up to Rs 750.00 million by the Selling Shareholders comprising up to Rs 375.00 million by Boman Rustom Irani, up to Rs 187.50 million by Percy Sorabji Chowdhry and up to Rs 187.50 million by Chandresh Dinesh Mehta.


  • IPO Opens on: Monday, November 14, 2022
  • IPO Closes on: Wednesday, November 16, 2022
  • Price Band: Rs 514 to Rs 541 per Equity Share
  • Face Value: Rs 10 each
  • Offer for Sale: Aggregating to Rs 530 crore
  • Bidding: Minimum of 27 Equity Shares and in multiples

The Company intends to use the proceeds of the fresh issue for repayment/ prepayment, in full or part, of certain borrowings availed by the Company and/or certain of the subsidiaries; and funding acquisition of future real estate projects, and general corporate purposes. The Equity Shares offered through Red Herring Prospectus are proposed to be listed on BSE and NSE.

Management Says

“We carry risk of high debt as our business is capital intensive and requires significant expenditure for real estate project development, which we fund through financing from banks and other financial institutions. Our Debt / Equity ratio for the Fiscal 2022 is 1.62 as against the average of the listed peer group of 0.53. Negative operating cash flows over extended periods, or significant negative cash flows in the short term, could materially impact our ability to operate our business and implement our growth plans.

“We carry geographical concentration risk. As of June 30, 2022, all our projects were located within the Mumbai Metropolitan Region (“MMR”) and we generated all of our revenue from operations from the MMR. The table below provides details of our total available inventory and unsold inventory in the MMR for our Completed and Ongoing Projects as of June 30, 2022:

CategoryTotal Available Units for SaleTotal Units UnsoldPercentage of Total Available Units (%)
Completed Projects (A)13,1761140.87%
Ongoing Projects (B)4,6271,74837.78%
Total (A+B)17,8031,86210.46%

Our revenues carry risk of concentration from residential projects. We almost entirely focus on residential projects, with very limited exposure to commercial and retail projects. Revenue from residential projects contributed 92.27%, 95.98%, 94.62%, 74.58% and 94.26% of Revenue from Operations for the Fiscals 2020, 2021 and 2022 and for the three months period ended June 30, 2021 and June 30, 2022, respectively.

We are also subject to the cost overruns including due to significant increases in prices or shortage of or delay or disruption in supply of construction materials. The construction cost (including material cost) as a percentage of Revenue from Operations was 74.37%, 72.20%, 77.89%, 77.77% and 79.26% in Fiscals 2020, 2021 and 2022 and the three months period ended June 30, 2021 and June 30, 2022, respectively.

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