Keystone Realtors Promoters To Offload Stake Worth Rs 252 Crore: What This Means For Investors
Keystone Realtors Ltd. promoters are looking to offload stake worth Rs 252 crore through offer for sale on Wednesday, the company said in an exchange filing. The promoters will together divest 3.63% stake in the realtor.
Why Are The Promoters Selling Their Stake?
The promoters Boman Rustom Irani, Chandresh Dinesh Mehta, and Percy Chowdhry will be selling 45.76 lakh shares in the offer for sale. The floor price for the sale has been set at Rs 550 per share, representing a discount of 10.2% from the last closing price of Rs 612.45 per share on the NSE.
This move by the promoters could be seen as a strategic decision to unlock value for themselves, while also providing an opportunity for other investors to buy into the company. However, it’s also important to consider the potential impact on the company’s stock price and the real estate sector in India.
Keystone Realtors’ Performance
Keystone Realtors saw a 9% rise in its sales bookings to Rs 763 crore during the second quarter of this financial year. The realty firm attributed the increase to better demand for its properties.
In the year-ago period, the company’s sales bookings or pre-sales stood at Rs 763 crore. Sales bookings in the first six months of this fiscal rose 40% to Rs 1,831 crore compared to Rs 1,311 crore in the corresponding period of the preceding year.
This positive performance by the company could be seen as a testament to the growing demand for real estate in India, particularly in the luxury segment. To know more about the Indian real estate market trends, visit our website.
What Does This Mean For Investors?
The business update was shared after market hours. The stock settled 0.02% higher at Rs 612.45 apiece on the NSE, compared to a 0.32% decline in the benchmark Nifty 50. The shares earlier during the day rose as much as 2.08% to Rs 625.05 per share.
Keystone Realtors’ shares have fallen 13.90% in the last 12 months and 9.19% year-to-date. However, all three analysts tracking the company maintain a ‘buy’ rating according to Bloomberg data. The average 12-month consensus price target of Rs 866.67 implies an upside of 41.5%.
This suggests that despite the current downturn, there is still potential for growth in the company’s stock price. To learn more about how to invest in the stock market and make informed decisions, read our blog.
Conclusion
In conclusion, the promoters of Keystone Realtors offloading their stake could be seen as a strategic move to unlock value for themselves and provide an opportunity for other investors to buy into the company. However, it’s also important to consider the potential impact on the company’s stock price and the real estate sector in India.
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