Kalpataru Real Estate Eyes Deleveraging with ₹1,590 Crore IPO
Kalpataru, a leading real estate firm, plans to reduce its debt significantly by leveraging the proceeds from its ₹1,590 crore IPO, existing cash reserves, and future sales. The company aims to bring its debt-to-equity ratio below 2x.
Real EstateIpoKalpataruDeleveragingDebttoequity RatioReal Estate NewsJun 19, 2025
As of December 31, 2024, Kalpataru's net debt stood at around ₹10,120.52 crore, with a debt-to-equity ratio of approximately 3.7x. The company expects to reduce this ratio to below 2x after the fundraise. Of the ₹1,590 crore the company aims to raise via the IPO, ₹1,192.5 crore will be allocated for the repayment of borrowings.
In 2022, Kalpataru sold land parcels across Thane and Pune for ₹2,002.6 crore. Between 2023 and 2024, the company's promoters and members of the promoter group infused ₹1,440 crore through the conversion of unsecured loans into compulsorily convertible debentures (CCDs).
On March 27, 2025, the company converted these CCDs into 2.78 crore equity shares at ₹517.25 per share, including a premium of ₹507.25. This conversion has already brought the debt-equity ratio down to 3.7x, as of March 2025.
Chandrashekhar Joglekar, Chief Financial Officer of Kalpataru, stated, “As of March, our debt-equity ratio, due to the conversion of CCDs into equity, has already come to 3.7. On the repayment of debt and raising of capital from the IPO, it will go down further below 2x.”
The company's current cash and bank balance is around ₹800 crore. Kalpataru is also banking on its robust project pipeline, which includes 24.83 million square feet (msf) of ongoing projects, 16.33 msf of forthcoming projects, and 7.8 msf in the planning stage. The company has land reserves of approximately 1,600 acres across the Mumbai Metropolitan Region (MMR), Pune, and Surat.
In FY26 and FY27, Kalpataru will be delivering many projects totaling 10 msf. This will generate significant net cash or surplus cash, which will be automatically utilized towards debt repayment, potentially reducing the debt to almost half of its current level.
The company's IPO is scheduled to open on Tuesday, June 24, 2025, and close on Thursday, June 26, 2025. The price band for the fresh issue has been set between ₹387 and ₹414 per equity share. Bids can be made for a minimum of 36 equity shares and in multiples of 36 thereafter.
Kalpataru has a track record of developing over 120 projects across 10 Indian cities. In the first nine months (9M) of FY25, the company's revenue from operations was ₹1,624.7 crore, compared to ₹1,929.98 crore in FY24. The company posted a profit of ₹5.51 crore in 9M FY25, against a loss of ₹116.51 crore earlier.
The management attributes the earlier losses to the revenue recognition method they follow, where revenues are recognized only after a project is completed. In 9M FY25, the company recorded sales of ₹2,727.3 crore, compared to ₹3,201.98 crore in FY24.
Approximately 92% of Kalpataru's portfolio is in the residential segment, and the company plans to continue focusing on this, particularly through asset-light projects such as redevelopment, joint ventures (JVs), and joint developments (JDs). Currently, 25% of Kalpataru's portfolio comprises asset-light projects, and Parag Munot, Managing Director, expects this share to increase.
Redevelopment has seen strong growth due to changes in Development Control Regulations (DCR). South Mumbai and the suburbs have become viable for redevelopment, making it the right time for Kalpataru to go public. Munot stated, “It's the right time to go public, because only when you are listed do you have the potential to acquire more projects.”
Frequently Asked Questions
What is Kalpataru's current net debt?
Kalpataru's net debt as of December 31, 2024, was ₹10,120.52 crore.
How much of the IPO proceeds will be used to repay borrowings?
₹1,192.5 crore of the ₹1,590 crore IPO proceeds will be used to repay borrowings.
What is Kalpataru's debt-to-equity ratio as of March 2025?
Kalpataru's debt-to-equity ratio as of March 2025 is 3.7x.
When will Kalpataru's IPO open and close?
Kalpataru's IPO will open on Tuesday, June 24, 2025, and close on Thursday, June 26, 2025.
What percentage of Kalpataru's portfolio is in the residential segment?
Approximately 92% of Kalpataru's portfolio is in the residential segment.
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