New Delhi: The Rs 635 crore-initial public offering (IPO) of Keystone Realtors continued to receive muted responses during the second day of the bidding process. The issue was subscribed to only 8% on day one.
The company is selling its shares in the range of Rs 514-541 apiece between November 14-16, with a lot size of 27 equity shares. The issue comprises fresh equity shares worth Rs 560 and an offer-for-sale (OFS) of Rs 75 crore.
According to BSE data, the investors made bids for 9,67,032 equity shares or only 11% compared to the 86,47,858 equity shares offered for the subscription by noon on Tuesday, November 14.
The quota for retail bidders was subscribed to merely 17%, whereas the allocation for non-institutional investors fetched just 14% of bids. But the portion for qualified institutional bidders was not even off the mark.
As of March 31, the real estate developer had 32 completed projects, 12 ongoing projects and 19 forthcoming projects across the Mumbai Metropolitan Region (MMR).
It 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.
The majority of the brokerages remain positive on the issue in the long run but are cautious over its valuations and high debt-to-equity ratio in the near term. However, it has a subscribe tag mostly. Keystone Realtors is available at 45x FY22 P/E, said ICICIDirect Research, which has given subscribe only for long-term rating to the IPO.
“Given the historical track record of execution, strong brand name and decent historical market share within some of the key micro markets in MMR, we remain positive on long-term prospects ahead,” it added.
The issue pricing is at par with listed players and the company has the potential to offer growth in its operating regions such as Thane, and Bhandup said
with a ‘Subscribe’ rating to the issue for listing gains.
and Credit Suisse Securities (India) are the book-running lead managers to the issue, whereas Link Intime India has been appointed as the registrar of the issue.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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