India: Keystone Realtors, which sells properties under the brand ‘Rustomjee’, on Friday said it has collected a little over Rs 190 crore from anchor investors, days before its initial public offering (IPO). The company has decided to allot 35.21 lakh equity shares to 16 anchor investors at Rs 541 apiece, taking the transaction size to Rs 190.5 crore, according to a circular uploaded on BSE website. The anchor book saw participation from a wide variety of investors. Abu Dhabi Investment Authority, Morgan Stanley and Saint Capital accounted for nearly 35 per cent of the anchor investor portion. Domestic mutual funds such as Aditya Birla Mutual Fund, IDFC Mutual Fund, Tata Mutual Fund and Quant Mutual Fund also participated in the anchor investor portion. SBI Life Insurance and HDFC Life Insurance Company too were part of the anchor investors.
The Mumbai-based company is looking to raise Rs 635 crore through the IPO, which consists of a fresh issue of equity shares aggregating up to Rs 560 crore and an Offer-For-Sale (OFS) worth Rs 75 crore by promoters. The issue, with a price band of Rs 514-541 a share will open for public subscription on November 14 and conclude on November 16. As part of the OFS, promoter Boman Rustom Irani will now sell shares worth up to Rs 37.5 crore and stocks to the tune of Rs 18.75 crore each will be offloaded by Percy Sorabji Chowdhry and Chandresh Dinesh Mehta. The company intends to utilise the net proceeds towards funding the repayment/prepayment of borrowings to the tune of Rs 341.6 crore as well as towards funding the acquisition of future real estate projects and general corporate purposes. Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Investors can bid for a minimum of 27 equity shares and in multiples thereof.
Founded in 1995, Keystone Realtors has 32 completed projects, and has 12 ongoing projects and 19 forthcoming projects across the Mumbai Metropolitan Region (MMR) that includes a comprehensive range of projects under the affordable, mid and mass, aspirational, premium and super premium categories, all under their Rustomjee brand. The realty firm has developed 20.05 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 as of March 2022.
As part of the business model, they focus on entering into joint development agreements, redevelopment agreements with landowners or developers or societies, and slum rehabilitation projects, which requires lower upfront capital investment compared to direct acquisition of land parcels. Over the last decade, their reputation as a re-development expert has been built on the vast experience of undertaking re-development projects which has led to them securing additional projects in the space. Since inception, they have learned and honed the process of re-development and to balance the diverse needs of existing members in each project. They been able to institutionalize and streamline the process of re-development in MMR.