New IPO Listing: Rustomjee operator Keystone Realtors shares end 3% higher on debut trade – what should investors do?

After a lukewarm market debut, shares of Keystone Realtors on Thursday ended around 3 per cent higher to Rs 557 per share levels in its debut trade on NSE and BSE against the issue price of Rs 541 at the upper end.

The stock listed at Rs 555, reflecting a gain of 2.58 per cent from the issue price on the BSE. It further rallied 5 per cent to Rs 568.25. Shares of the firm ended at Rs 557.80 apiece, higher by 3.10 per cent.

At the NSE also, it made its debut at Rs 555. It later ended at Rs 556.80, a gain of 2.92 per cent.

The company has given a respectable listing to unexciting investor subscription levels, Pravesh Gour, Senior Technical Analyst, Swastika Investmart said on the tepid market debut of the stock.

In his recommendation, Zee Business Managing Editor Anil Singhvi said, “Long term investors can HOLD, while short term investors keep a stoploss of Rs 525 apiece.” He further advised investors to buy if you get below after listing.

Gour in his recommendation said, “Allottees who applied for the public offering for listing premium are advised to maintain their stop loss at 545 and wait for further upside, whereas those who have a medium- to long-term perspective can hold the stock and maintain their stop loss at 510 apiece.”

The company, which sells properties under brand 'Rustomjee', commanded a market valuation of Rs 6,352.08 crore on the BSE. In volume terms, 4.16 lakh shares of the firm were traded at the BSE and over 58.63 lakh shares on the NSE during the day.

Keystone Realtors Limited is a well-known real estate developer from Mumbai. It is also trying to work on an asset light business model. KRL has reported a mixed set of financials, where revenue is almost stable.

The initial public offering of Keystone Realtors received 2 times subscription on the last day of the offer on November 16. The IPO had a fresh issue of up to Rs 560 crore and an offer-for-sale of up to Rs 75 crore. Price range for the IPO was at Rs 514-541 a share.