Rustomjee group company Keystone Realtors has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise around Rs 850 crore in an IPO.

The IPO consists of a fresh issue of Rs 700 crore and an offer for sale (OFS) of up to Rs 150 crore from its existing shareholders and promoters.

OFS includes Boman Rustom Irani up to Rs 75 crore, Percy Soraji Chowdhry up to Rs 37.5 crore and Chandresh Dinesh Mehta up to Rs 37.5 crore.

Proceeds from the issue worth Rs 427 crore will be used to repay the debt of its subsidiaries. The company will also use the remaining funds to fund acquisitions of future real estate projects and general corporate purposes. Axis Capital and Credit Suisse are responsible for this issue.

The company reported consolidated revenue of Rs 848.72 crore in FY21 compared to Rs 1211.47 crore in FY 2020. Net profit for the year was Rs 231.82 crore compared to Rs 14.5 crore a year ago. Total debt for the year stands at Rs 1564.04 crore.

It is one of the pre-eminent property developers in the micro-market (in terms of unit number absorption). It operates in Juhu, Bandra East, Khar, Bhandup, Virar and Thane. They can get a premium on the MMR micro-market where their projects are located.

As of March 31, 2022, the company has 32 completed projects, 12 projects under construction and 19 upcoming projects in the Mumbai Metropolitan Region (MMR), including Affordable, Medium and Mass, Desirable, Premium and Ultra Quality items. categories, all under its Rustomjee brand. It has developed 20.05 million square feet of high-value and affordable residential towers, high-end gated estates, towns, corporate campuses, retail spaces, schools, iconic landmarks and various other real estate projects.