Kalpataru IPO: Real Estate Firm Seeks to Raise INR 1590 Crore to Reduce Debt
Kalpataru Ltd, a Mumbai-based real estate developer, has filed its draft red herring prospectus with SEBI to raise up to INR 1590 crore through an initial public offering (IPO).
Kalpataru IpoReal EstateProperty DevelopmentMumbaiSebiReal Estate MumbaiAug 25, 2024
The IPO will consist of a fresh issue of shares, each carrying a face value of INR 10, with the company planning to allocate INR 1192.5 crore for the full or partial repayment of specific borrowings. This move is expected to significantly improve the company's financial health and enable it to expand its operations in the real estate sector.
Kalpataru Ltd is an integrated real estate developer that engages in all facets of property development, including land acquisition, design, planning, execution, marketing, and sales. The company's portfolio includes 25 ongoing projects covering an area of 22 million square feet, with an additional 10 projects in the pipeline and 5 more in the planning stages. Collectively, these developments span nearly 50 million square feet.
The company's residential offerings include a diverse range of villas, duplexes, apartments, and plots of varying sizes. Kalpataru Ltd has concentrated over 67% of its residential projects in the Mumbai Metropolitan Region (MMR) and Pune, Maharashtra, with additional ongoing projects in Hyderabad, Telangana, and Noida, Uttar Pradesh.
In the fiscal year 2024, Kalpataru Ltd significantly improved its financial performance, reducing losses to INR 100.7 crore, down from INR 200.7 crore in the prior year. However, revenue from operations declined to INR 1930 crore from INR 3633 crore during the same period.
Kalpataru Ltd is a key player in the Kalpataru Group, a conglomerate founded by Mofatraj P. Munot in 1969. The Group operates on a multinational scale, with a diverse range of businesses, including EPC contracting for power transmission and distribution, oil and gas, railways, civil infrastructure projects, warehousing and logistics, and facility management.
For its IPO, Kalpataru Ltd has enlisted ICICI Securities Ltd, JM Financial Ltd, and Nomura Financial Advisory and Securities (India) Private Ltd as the book-running lead managers. These firms will oversee the process, ensuring a smooth and successful launch of the IPO.
Frequently Asked Questions
What is the purpose of Kalpataru Ltd's IPO?
The primary purpose of the IPO is to raise funds to reduce the company's debt burden.
How much does Kalpataru Ltd plan to raise through the IPO?
The company plans to raise up to INR 1590 crore through the IPO.
What is the face value of the shares being issued in the IPO?
The face value of each share is INR 10.
What is the composition of Kalpataru Ltd's portfolio?
The company's portfolio includes 25 ongoing projects covering an area of 22 million square feet, with an additional 10 projects in the pipeline and 5 more in the planning stages.
Who are the book-running lead managers for Kalpataru Ltd's IPO?
ICICI Securities Ltd, JM Financial Ltd, and Nomura Financial Advisory and Securities (India) Private Ltd are the book-running lead managers for the IPO.
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