Keystone Realtors IPO Review by Anil Singhvi: Subscribe or avoid? Check recommendation here

Keystone Realtors IPO, Keystone Realtors IPO Details, Keystone Realtors IPO Date, Keystone Realtors Listing Date, Keystone Realtors Allotment Date: Initial Public Offering (IPO) of Keystone Realtors, which sells properties under the brand 'Rustomjee', is set to open for subscription today i.e. November 14. The window for subscription will remain open for three days and will end on Wednesday i.e. November 16. According to information available on the official website of the Bombay Stock Exchange (BSE), the company has decided to allot 35.21 lakh equity shares to 16 anchor investors at Rs 541 apiece, taking the transaction size to Rs 190.5 crore.

According to Zee Business Managing Editor Anil Singhvi, this is a very interesting IPO as there are several positive as well as negative sides to this company. 

"The most important thing is that 'Rustomjee' is a very respected name in Mumbai and has been famous for good quality and timely completion of projects. Also, the cash flow of the company is very strong. This is because they do joint development and having a positive cash flow in the sector is a serious deal," Singhvi said. 

On the flip side, there are some negative aspects as well. For example, the company is only focusing on Mumbai and there is no diversification. 

"They have been building premium residences so far and therefore managed to have a good margin. However, out of 27 new projects announced, only six of them will be in this category so one would have to watch whether they will succeed in maintaining this margin or not. Also, valuation is not very attractive and I think it should have been a bit cheaper," he added.

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Considering all this, Singhvi advised that one should buy Keystone Realtors after listing or those investors who are ready to risk should buy it for the long term.