DRHP Link:

Keystone Realtors Limited, a real estate developer which operates under the brand “Rustomjee”,has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).

Keystone Realtors is one of the prominent real estate developers (in terms of absorption in number of units) in the micro markets that they are present in (Source: Anarock Report). Since their inception in 1995, they have strived to create a brand focused on customer satisfaction, building communities and nurturing spaces that provide its customers a superior lifestyle. They aspire to have their customers perceive the ‘Rustomjee’ brand as a trusted provider of quality offerings and services due to their track record of delivering multiple high-end award winning buildings, gated communities and townships. The company’s experience in the MMR market has helped them to develop a firm understanding and acquire the requisite skill sets to create ideal spaces for communities to flourish. As of March 31, 2022, they 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. As of March 31, 2022, they have 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.

The Company plans to raise funds through an initial public offering of equity shares (face value Rs. 10 each) of up to ₹ 8,500 million. The offer consists of fresh issue of equity shares aggregating up to ₹ 7,000 million, (The “Fresh Issue”) and an offer for sale aggregating up to ₹ 1,500 million by Promoter Selling Shareholders (The “Offer for Sale”).

The company proposes to utilize the net proceeds towards repayment/ prepayment, in full or part, of certain borrowings availed by the company and/or certain of their subsidiaries; and funding acquisition of future real estate projects and general corporate purposes.

The offer for sale comprises equity shares up to ₹ 750 million by Mr. Boman Rustom Irani; up to ₹ 375 million by Mr. Percy Sorabji Chowdhry and up to ₹ 375 million by Mr. Chandresh Dinesh Mehta (“Promoter Selling Shareholder”).

Axis Capital Limited, and Credit Suisse Securities (India) Private Ltd are the Book Running Lead Managers.

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