Mumbai-based Keystone Realtors' IPO, to raise up to Rs 635 crore, was subscribed eight percent on Monday — the first day of the bidding process. The initial share sale of Mumbai-based real estate developer Keystone Realtors — which operates the Rustomjee brand — includes fresh issuance worth Rs 560 crore and an offer for sale (OFS).

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At the end of the day, the IPO received bids for 7.2 lakh shares as against the total 86.5 lakh shares on offer, according to exchange data.

The portion reserved for high net-worth individuals was subscribed 11 percent and that meant for retail investors 12 percent. The portion meant for qualified institutional buyers didn't get any bids.

Up to 50 percent of the total issue is reserved for QIBs, at least 15 percent for non-institutional investors and the remaining for retail investors.

ALSO READ: Check out all important details about Keystone Realtors IPO

The IPO will be available for bidding from 10 am to 5 pm for two more trading days till November 16.

Potential investors can bid for Keystone Realtors shares in a price range of Rs 514-541 apiece in multiples of 27 under the IPO — which translates to Rs 13,878-14,607 per lot.

ALSO READ: Keystone Realtors look to raise Rs 635 crore through IPO

Should you subscribe to the Keystone Realtors IPO?

Anand Rathi suggests subscribing to the Keystone Realtors IPO for the long term.

The company is demanding a price-to-earnings multiple of 44.1 times on a trailing-twelve-months basis at the upper end of the price range, which is reasonably priced, according to the brokerage.

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(Edited by : Sandeep Singh)