Kalpataru's ₹1,590-crore IPO Opens: A Promising Bet for Investors?
Kalpataru Limited, a prominent Mumbai-based real estate developer, is set to open its initial public offering (IPO) on June 24. With a robust pipeline and strong investor backing, should you bid?
KalpataruIpoReal EstateMumbaiInvestmentReal Estate MumbaiJun 24, 2025
The IPO will offer shares in a price band of ₹387 to ₹414 per share. Investors can bid for a minimum of 36 shares in one lot and in multiples thereof. In the unofficial market, shares of Kalpataru were commanding a premium of ₹9 on June 23, indicating a potential listing gain of 2% over the issue price. However, it's important to note that grey market premiums are just an indicator and can change rapidly.
Brokerages like Bajaj Broking have recommended subscribing to the IPO with a long-term view. While the issue may seem aggressively priced at first glance, the brokerage believes that well-informed investors may consider allocating funds for the long haul. Kalpataru is one of the leading real estate developers involved in all major aspects of property development. The company reported a strong topline performance in FY23, boosted by a one-off land parcel deal. Kalpataru holds a niche position in the Mumbai Metropolitan Region (MMR) and has shown signs of a turnaround in the first nine months of FY25. Management remains optimistic about further improvements in financial performance, backed by a robust pipeline of ongoing and upcoming projects.
SMC Global highlights Kalpataru as a leading developer in the MMR and Pune regions, backed by a robust pipeline, strong brand recall, and proven execution capabilities. The company's ability to leverage the Kalpataru Group's legacy positions it well to benefit from urban infrastructure growth and rising demand for branded, sustainable housing. While regional and residential concentration pose risks, ongoing deleveraging efforts and expansion into new high-growth cities strengthen its long-term outlook.
Kalpataru focuses on the development of luxury, premium, and mid-income residential, commercial, and retail projects, integrated townships, lifestyle gated communities, and redevelopments. As of March 31, 2024, the company has 40 ongoing projects and has completed 70 projects. The company sold properties worth ₹2,727.24 crore during April-December of the last fiscal on strong demand for housing and commercial assets.
The proceeds from the issue, worth ₹1,590 crore, will be used to reduce debt. As of April 2025, the company's total debt stood at ₹10,186.6 crore. Considering the upper end of the price band, the total market capitalisation of the company will be around ₹8,524 crore. Kalpataru Ltd Managing Director Parag M Munot expressed confidence that the company’s IPO would be successful despite global conflicts and economic uncertainties. He emphasized that India's growth story is intact, driving demand across sectors, including real estate.
Kalpataru Ltd is part of the Kalpataru Group, which includes Kalpataru Projects International, Property Solutions (India), Shree Shubham Logistics, and their respective subsidiaries. The company competes with listed entities such as Oberoi Realty, Lodha Developers, Godrej Properties, Keystone Realtors, Prestige Estates Projects, Sunteck Realty, and Mahindra Lifespace Developers, all prominent in the Mumbai Metropolitan Region.
ICICI Securities, JM Financial, Nomura Financial Advisory And Securities (India) Pvt Ltd are the book running lead managers of the Kalpataru IPO, while MUFG Intime India Private Limited (Link Intime) is the registrar for the issue. The allotment for the Kalpataru IPO is expected to be finalised on June 27, with a tentative listing date on BSE and NSE fixed for July 1.
Frequently Asked Questions
What is the price band for Kalpataru's IPO?
The price band for Kalpataru's IPO is ₹387 to ₹414 per share.
How much has Kalpataru raised from anchor investors?
Kalpataru has raised ₹708 crore from anchor investors, including GIC Singapore and GSS Opportunities Investment (Bain Capital).
What is the total market capitalisation of Kalpataru at the upper end of the price band?
At the upper end of the price band, the total market capitalisation of Kalpataru will be around ₹8,524 crore.
How will the proceeds from the IPO be used?
Proceeds from the IPO, worth ₹1,590 crore, will be used to reduce the company's debt, which stood at ₹10,186.6 crore as of April 2025.
When is the tentative listing date for Kalpataru's IPO?
The tentative listing date for Kalpataru's IPO on BSE and NSE is July 1, 2023.
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