Keystone Realtors Limited, operating under the brand name Rustomjee, has announced a significant move to bolster its financial position. The company's board of directors has given the green light to a fundraising initiative worth ₹375.00 crore through the issuance of non-convertible debentures (NCDs).

Fundraising Details

The board approval outlines the following key points:

• Instrument: Fully paid up, senior, secured, redeemable, listed, rated non-convertible debentures (NCDs)
• Total Amount: ₹375.00 crore
• Face Value: ₹1,00,000 per NCD
• Placement: Private placement basis

Strategic Implications

This move by Keystone Realtors, a prominent player in the real estate sector, signals a strategic approach to capital raising. By opting for NCDs, the company is leveraging a debt instrument that allows it to raise funds without diluting existing shareholder equity.

Investor Perspective

For potential investors, this offering presents an opportunity to invest in secured, rated debentures from a listed real estate company. The private placement nature of the issuance suggests that the company may be targeting select institutional or high-net-worth investors for this fundraise.

Company Background

Keystone Realtors Limited, known for its Rustomjee brand, is a significant player in the Indian real estate market.

Market Impact

While the specific use of funds has not been detailed in the announcement, this substantial capital raise could potentially be directed towards ongoing projects, debt refinancing, or new land acquisitions. The market will likely be watching closely to see how this infusion of capital impacts the company's operations and financial health in the coming quarters.

The board meeting that approved this fundraising initiative commenced at 3:30 PM and concluded at 4:00 PM on the day of the announcement. As the real estate sector continues to evolve, moves like this by established players such as Keystone Realtors will be crucial in shaping the industry's financial landscape.

Keystone Realtors Limited , known for its RUSTOMJEE brand in the real estate sector, has announced a significant upcoming event that could impact its financial strategy. The company has scheduled a Board of Directors meeting for September 10 to consider and potentially approve raising funds through debentures.

Strong Pre-Sales Performance

Keystone Realtors has exceeded its annual pre-sales guidance, achieving over 25% in the first quarter with projects worth over ₹7,700.00 crore locked in against full-year guidance of ₹6,000.00 crore. Project launches in the April-June quarter were worth nearly ₹4,000.00 crore, indicating robust market demand for the company's offerings.

Financial Performance

Despite the strong pre-sales figures, the company's quarterly financial performance has shown a decline:

Board Meeting Details

The upcoming board meeting on September 10 will primarily focus on exploring the option of issuing debentures as a means of fundraising. This decision could have important implications for the company's financial structure and future growth plans.

Official Communication

Keystone Realtors has formally communicated this development to both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The company has ensured transparency by making this information publicly available.

Corporate Governance

The intimation was officially signed by Bimal K Nanda, the Company Secretary and Compliance Officer of Keystone Realtors Limited. This adherence to proper corporate governance procedures underscores the company's commitment to keeping its shareholders and the market informed of potential significant decisions.

Investor Information

For investors and stakeholders seeking more details, the company has made the full intimation available on its official website, www.rustomjee.com . This move allows for easy access to information and promotes transparency in the company's operations.

The outcome of this board meeting could potentially influence Keystone Realtors' financial position and may be of interest to investors and market analysts alike. Any decisions regarding fundraising through debentures will be subject to board approval and relevant regulatory compliances.

Stakeholders and interested parties are advised to keep an eye on further announcements from the company following the September 10 board meeting for any concrete decisions or additional details regarding the proposed fundraising initiative.