Mumbai-based real estate developer Keystone Realtors - also known for the Rustomjee brand - has received a strong response to its share placement, and the QIP has been closed after 2.5x demand from base deal size, CNBC-TV18 reported citing sources.
The real estate players had decided to raise funds through a Qualified Institutional Placement (QIP), with a floor price at Rs 682.51 per share, according to an exchange filing on May 22. It is learnt that the QIP has been allocated to long-only funds, including large domestic funds such as Quant MF, Birla Sun Life and ICICI Prudential.
CNBC-TV18 citing sources, had reported that Keystone is looking to raise Rs 1,000 crore through the share sale to institutional investors. The company said it reserves the discretion to offer a discount of not more than 5% on the floor price for the QIP.
Keystone Realtors' standalone results.
Rustomjee Group has plans to focus on constructing homes in the range of Rs 1-7 crore, and aiming to be a dominant player in Mumbai's redevelopment segment. It has no plans to foray outside the Mumbai Metropolitan Region (MMR), chairman Boman Irani told Moneycontrol earlier this year.
In its last annual report, the company had said that it had 22 projects in pipeline with a potential 37 million sq ft of saleable area with gross development value (GDV) of Rs 35,000 crore.
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