The retail component of Keystone Realtors' initial public offering was subscribed to 1.99 times on the last day
The owner of the Mumbai-based real estate development company Rustomjee seeks to raise Rs 635 crore through a public offering that consists of newly issued shares for Rs 560 crore and a promoters' offer to sell their shares for Rs 75 crore.
admin
Even on November 16, the final day of bidding, Keystone Realtors, the company that owns the real estate brand Rustomjee, received little interest in its initial public offering. A total of 1.71 crore shares have been offered for the offering, which had a Wednesday subscription rate of 1.99 times the IPO size of 86.47 lakh shares.\
High net worth individuals have purchased shares at a rate of 3.03 times the quota given thus far, but retail investors have continued to undersubscribe, requesting only 48% of the allotted amount.
The portion reserved for accredited institutional buyers received 3.84 times as many subscriptions.
Half of the company's offer has been set aside for qualified institutional investors, 15% has been allocated to non-institutional, high net worth investors, and the remaining 35% has been allocated to retail investors.
Since the offer includes both a new issue and an offer-for-sale, it must receive at least 90% of the total subscriptions as well as 100% of the subscriptions in the QIB category to be successful.
The Mumbai-based real estate company Rustomjee operator hopes to raise Rs 635 crore through the public offering, which consists of new shares worth Rs 560 crore and a founders' offer to sell shares worth Rs 75 crore.
Shares will be sold by an offer for sale by all three promoters, Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta.
The price range for the November 14 opening of the offer is Rs. 514-541 per share.
The main goals of the new issue are debt reduction and the acquisition of new real estate projects.
Given the increase in secondary market conditions, November overall saw very high primary market performance. During the month, IPOs for Keystone Realtors, Inox Green Energy Services, Kaynes Technology India, Archean Chemical Industries, Five Star Business Finance, Global Health, Bikaji Foods International, and Fusion Micro Finance totaling more than Rs 9,800 crore were launched.
