scorecard
  1. Home
  2. stock market
  3. news
  4. Keystone Realtors lists at 2.6% premium, tops grey market estimates

Keystone Realtors lists at 2.6% premium, tops grey market estimates

Keystone Realtors lists at 2.6% premium, tops grey market estimates
Stock Market4 min read
  • Shares of Keystone Realtors listed at ₹555 against the allotment price of ₹541 per share.
  • The IPO saw decent demand from investors amid volatile market conditions, and was subscribed 2.01 times.
  • The market capitalisation of the company stood at ₹6,320 crore.
Shares of real estate company Keystone Realtors, which sells properties under the ‘Rustomjee’ brand, on Thursday listed on the bourses at ₹555 per share, a 2.6% premium to the issue price of ₹541.

This is higher than the grey market expectation that predicted it to list at a 1% premium. The grey market is the unofficial market where the IPO shares are traded before they are listed on the stock exchanges.

Meanwhile, the stock market has been trading slightly higher in early trade as the Sensex rose by 145 points, and Nifty gained 38 points.

The market capitalisation of Keystone Realtors stands at ₹6,320 crore, according to BSE data.

The IPO saw decent demand from investors amidst volatile market conditions, being subscribed 2.01 times.
Category of investors

Subscription status

Qualified institutional buyers

3.84 times

Non institutional investors

3.03 times

Retail

0.53 times

Overall

2.01 times


This year, 31 IPOs made their stock market debut on the BSE mainboard. Most of them gave positive listing gains, except eight issues. Here are the top five IPOs with highest listing gains in 2022.

Companies

Highest listing gains per share

Harsha Engineers International

₹155.90

Dreamfolks Services

₹136.65

Aether Industries

₹134.75

DCX Systems

₹101.80

Syrma SGS Technology

₹93.05

Source: BSE

Keystone Realtors has raised ₹635 crore through the IPO – ₹560 crore of it through a fresh issue of shares and ₹75 crore through an offer for sale by promoters and existing shareholders.

The company will utilise IPO proceeds towards debt repayment, funding acquisition of future real estate projects, and general corporate purposes.

The company is in the business of real estate construction, development and other related activities in India. As of June 30, 2022, it had 12 ongoing projects and 21 forthcoming projects across the Mumbai Metropolitan Region (MMR), under affordable, mid and mass, and some premium categories.

The total borrowings of the company increased to ₹1,557 crore in FY22 from ₹1,220 crore in FY21. The company added that the development of real estate projects involved significant expenses, a large part of it funded through financing from banks and other financial institutions.

The company mentioned in its red herring prospectus that it may face issues in raising additional loans. “Moreover, certain of our loan documents contain provisions that may limit our ability to incur future debt, make certain payments or take certain actions,” it said.

In FY22, the real estate company’s net profits slumped 41% from a year ago to ₹136 crore while revenue rose 50% to ₹1,269 crore.
Particulars

Revenue from operations

Net profit

FY22

₹1,269 crore

₹136 crore

FY21

₹848 crore

₹231 crore

FY20

₹1,211 crore

₹14 crore



SEE ALSO: FPIs pour ₹11,452 crore in financial services in the first half of November
India projected to become world’s third largest economy overtaking Japan and Germany: S&P

READ MORE ARTICLES ON


Advertisement

Advertisement