Rustomjee group firm Keystone Realtors files Rs 850-cr IPO papers

Rustomjee group company Keystone Realtors has filed preliminary papers with Sebi to raise Rs 850 crore through an initial public offering (IPO).

The IPO consists of fresh issue of equity shares aggregating up to Rs 700 crore and an offer-for-sale (OFS) worth Rs 150 crore by promoters, according to the draft red herring prospectus (DRHP).

The OFS comprises sale of equity shares worth up to Rs 75 crore by Boman Rustom Irani and stocks to the tune of Rs 37.5 crore each by Percy Sorabji Chowdhry and Chandresh Dinesh Mehta.

The company proposes to utilize the net proceeds towards payment of debt, funding acquisition of future real estate projects and general corporate purposes.

Axis Capital, and Credit Suisse Securities (India) Pvt Ltd are the book running lead managers to the issue.

As of March 2022, Keystone Realtors had 32 completed projects, 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.

Also, the Mumbai-based real estate developer 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.