Keystone Realtors made a positive debut on the domestic indices today, listing at Rs 555 on the BSE and Rs 555 on the NSE. The shares are currently trading at Rs 557, 3% above the issue price. The Keystone Realtors IPO price band was set between Rs 514 to Rs 541. The company’s shares were available on the grey market for a discount of Rs 4, which had hinted at a subdued listing, however, the shares were listed at a premium.
The IPO sought to raise funds through issue of fresh sales totalling Rs 530 crore and offer for sale (OFS) amounting to Rs 75 crore, making the total issue size Rs 635 crore. The lot size for the IPO was 27 shares and the maximum amount that a retail investor could apply for was 13 lots, totalling to 351 shares, valued at Rs 1,89,891 at the upper price band.
The IPO was subscribed 2.01x, but retail investors only subscribed to the IPO 0.53x. However, the majority of demand was seen from QIBs and NIIs, who subscribed to the IPO 3.84x and 3.03x respectively.
The capital raised by the IPO will be used to fund the acquisition of real estate projects in the future as well as general corporate purposes. Keystone Realtors will also use the proceeds to pay off a portion of the company’s debt.
“The company has given a respectable listing to unexciting investor subscription levels. With a rising population, India’s urbanisation rate is also increasing at a fast pace, which is expected to drive the demand for housing, offices, and other real estate asset classes in the medium to long term. So, allottees who applied for the public offering for listing premium are advised to maintain their stop loss at 545 and wait for further upside, whereas those who have a medium- to long-term perspective can hold the stock and maintain their stop loss at 510,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart.
“Keystone is a prominent player in the real estate space. While the company had been inconsistent with its top and bottom lines for the past few years, we believe that the uptick in the real estate sector and softening of inflationary pressure augured well for Keystone,” said a Reliance Securities report prior to the listing, recommending that investors subscribe to the IPO.
Keystone Realtors is a large real estate development company, with over 280 buildings under their umbrella. The company develops property under the ‘Rustomjee’ brand name and has a variety of ongoing and forthcoming projects in the Mumbai Metropolitan Region. The projects have a comprehensive range, from affordable housing to aspirational, premium and super premium housing.