Keystone Realtors IPO Review – Should you Subscribe?

There is a flood of IPO’s in recent days. Mumbai based Keystone Realtors IPO would open for subscription on 11th November, 2022. Keystone Realtors Limited is one of the prominent real estate developers in India. Should you invest in Keystone Realtors IPO? This article would provide IPO details, Dates, Listing Date and conclusion on whether this is good or bad for investment.

Also Read: Inox Green Energy IPO Review and Analysis

About Keystone Realtors Limited

Keystone Realtors Ltd is one of the prominent real estate developers in India. It is engaged primarily in the business of real estate construction,  development and other related activities in India.

Till end of June, 2022, the company had 32 completed projects, 12 ongoing projects and 21 upcoming projects across the Mumbai Metropolitan Region that includes a comprehensive range of projects under the affordable, mid and mass, aspirational, premium and super premium categories, all under the Rustomjee brand.

Keystone Realtors IPO details and Review

Keystone Realtors IPO Details

IPO Opening Date 14-Nov-22
IPO Closing Date 16-Nov-22
Issue Type Book Built Issue IPO
Face Value Rs 10 per equity share
IPO Price band Rs 514 to Rs 541 per equity share
Lot Size 27 Shares
Min Order Quantity 27 Shares
Listing at BSE and NSE
Total Issue Size Rs. 635 Crores
    Fresh issue     Rs. 560 Crores
    OFS     Rs. 75 Crores

Keystone Realtors IPO RHP

What are the strengths of Keystone Realtors Limited?

1) It has well established customer-centric brand in the Mumbai Metropolitan Region

2) It is amongst the leading residential real estate development companies in MMR with a well-diversified portfolio and strong pipeline

3) It has an asset-light and scalable model resulting in profitability and stable financial performance

4) Company demonstrated project execution capabilities with in-house functional expertise

5) It has robust stakeholder management capabilities across the spectrum of project development

6) Company with technology focused operations resulting in operational efficiency and enhancing customer experiences

7) It has a strong focus on sustainable development

What are the Objects of the IPO Offer?

Keystone Realtors IPO Size is Rs 635 Crores which has OFS and fresh issue

1) OFS for Rs 75 Crores – Under OFS, selling shareholders would sell their shares and the company would not get any money from this IPO proceeds.

2) Fresh issue of Rs 560 Crores – Fresh issue would be used for the following:

  • Repayment/ prepayment, in full or part, of certain borrowings availed by the company and/or certain of the subsidiaries.
  • Funding acquisition of future real estate projects and general corporate purposes.

Who are the promoters of Keystone Realtors Limited?

Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta are the promoter of the company.

How is the company financial track record?

Here are the total assets, revenues and profits of the company in the last 3 years and 3 months.

Financial Year ending / Period ending (Amt in Crores)
Particulars FY20 FY21 FY22 30-Jun-22
Total Assets 4,415.3 3,654.1 3,876.8 3,910.2
Revenues 1,268.6 1,177.3 1,303.0 176.0
Profit After Tax 14.5 231.8 135.8 4.2
Profit % 1.14% 19.69% 10.42% 2.40%

Why to invest in Keystone Realtors IPO?

Keystone Realtors Limited is one of the prominent real estate developers in India.

Risk Factors of investing in Keystone Realtors IPO

1) While company revenues are stable, we could see a downtrend for Qtr ending Jun-2022.

2) Company margins are falling in the recent years. Its margins for FY21, FY22 and Q1FY23 at Rs 231.8 Crores, Rs 135.8 Crores and Rs 4.2 Crores.

3) Company IPO proceeds contains OFS also where such funds would go to selling shareholders and company would not get benefit from this.

4) Company business is significantly dependent on the performance of the real estate market generally in India and particularly in the Mumbai Metropolitan Region.

5) Company inability to complete its ongoing projects and forthcoming projects with expected dates can have a material impact on its business.

6) Investors should read complete risk factors indicated in the RHP of the IPO document before investing in this IPO.

Keystone Realtors IPO Valuation

Keystone Realtors IPO price band is Rs 514 to 541 per share.

If we consider FY22 EPS of Rs 13.96 on the upper price band, P/E ratio works out to be 38x.

If we consider last 3 years weighted EPS of Rs 17.69, P/E ratio would be 30x.

If we annualize Q1 FY23 EPS of Rs 0.49, P/E ratio would be 276x.

Means company is asking the issue price of Rs 514 to Rs 541 in the P/E ratio of 30x to 276x. There are listed peers like Oberoi Realty trading at P/E 32x (Lowest) and Suntek realty trading at P/E of 220x (Highest) and industry average P/E is 97x.  If we assume that Q1 FY23 revenues, and similar revenues would continue in future, then issue price is aggressively priced at P/E of 276x.

How much portion allocated to each group of investors in this IPO?

1) QIB – Not less than 50% of the offered shares

2) NII / HNI – Not less than 15% of the offered shares

3) Retail – Not less than 35% of the offered shares

Is it good or bad for investment?

An investor should always invest in a company that has strong financial track record. This company has generated stables in the last 3 years, however, these revenues have fallen for 3 months ending Jun, 2022. Company margins are also on declining mode.

What is Keystone Realtors IPO GMP today?

GMP is nothing but the premium at which the shares are trading in offline market. This is just an indication about the IPO price as it is unorganized market.

Keystone Realtors GMP today as per market observers is not available as there are no active trades being done.

Keystone Realtors IPO GMP Chanakya – Nil

Keystone Realtors GMP as per IPOCentral – Nil

Keystone Realtors IPO GMP IPOWatch – Nil

Keystone Realtors IPO GMP IPO Bazar – Nil

Keystone Realtors dates – subscription, Allotment and Listing

Offer Open 14-Nov-22
Offer close 16-Nov-22
Finalization of Allotment 21-Nov-22
Initiation of Refunds 22-Nov-22
Credit to Demat Account 23-Nov-22
IPO Shares Listing Date 24-Nov-22

How to buy Keystone Realtors IPO online through Zerodha?

If you do not have Zerodha account, sign-up here and proceed to the next step.

If you have a demat account with Zerodha, you can apply this IPO online using the UPI as a payment gateway. Zerodha customers can apply in this IPO by login into Zerodha Console submitting an IPO application form.

Follow below steps to apply this IPO in Zerodha platform:

1) Visit the Zerodha portal and login to the console.

2) Go to Portfolio and click the IPOs link.

3) Visit ‘Keystone Realtors Limited IPO’ row and click the ‘Bid’ button.

4) Enter your UPI ID, Qty and the Price which you want to bid.

5) Click on ‘Submit’ IPO application form.

6) Visit the UPI App (net banking or BHIM) to approve the mandate.

Also Read: Best High Return Mutual Funds to invest in 2022

Keystone Realtors IPO Review – Should you Subscribe?

After going through all these points, you might be wondering whether Keystone Realtors IPO is good for investment or not?

Keystone Realtors Services are one of the prominent real estate developers in India with primary focus on the Mumbai Metropolitan Region.

Company has stable revenues, however these are declined in recent Qtr. Its margins are on declining mode. If we consider Q1 FY23 revenues and check P/E, the issue price is overpriced.

I would personally like avoid such IPOs as of now.

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Suresh KP


  1. Your analysis on IPO are always best in industry. Even large brokerage house does not analyze in the way you do sir. You sre helping millions of small investors with detailed information. Hats off.

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