Keystone Realtors, which runs the real estate brand Rustomjee, had a muted response for its initial public offering even on its final day of bidding on November 16. The issue has received bids for 1.73 crore shares against an IPO size of 86.47 lakh shares, subscribing 2.01 times on Wednesday.
So far, high networth individuals bought shares 3.03 times the allotted quota, but retail investors remained undersubscribing, applying for just 53 percent of the reserved portion.
The part set aside for qualified institutional buyers was subscribed 3.84 times.
The company has reserved half of its offer for qualified institutional investors, 15 percent for non-institutional investors (high networth individuals), and the remaining 35 percent for retail investors.
The offer comprises a fresh issue as well as an offer-for-sale, hence it has to get at least 90 percent subscription along with full subscription in the QIB category to sail through the offer.
Also read: Hotels body asks regulator to stop OYO from floating
The Mumbai-based realty brand Rustomjee operator aims to garner Rs 635 crore through the public issue that comprises fresh issuance of shares worth Rs 560 crore and an offer-for-sale of Rs 75 crore by promoters.
All promoters Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta will sell shares via offer for sale.
The price band for the offer, which opened on November 14, is Rs 514-541 per share.
Click Here To Read All IPO Related News
The debt reduction and acquisition of new real estate projects are the primary objectives of fresh issue.
Overall, November was very strong for the primary market, given the improvement in secondary market conditions. More than Rs 9,800 crore worth of IPOs were launched during the month which are 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.
Click Here To Read Moneycontrol's Exclusive Research Note on KeyStone Realtors
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
