Real estate firm Kalpataru sets price band for Rs 1,590 crore IPO

Kalpataru Ltd, a Mumbai-based real estate developer, has set a price band of Rs 387 to Rs 414 per share for its upcoming Rs 1,590 crore initial public offering (IPO), which opens for subscription on June 24 and closes on June 26.

The IPO, entirely a fresh issue of 3.84 crore equity shares, is hitting the primary market amid a quiet grey market, with the latest grey market premium (GMP) standing at zero, indicating no immediate listing upside based on current sentiment.

Flat GMP signals cautious optimism


As of June 19, the GMP stood at Rs 0, suggesting an estimated listing price of Rs 414, in line with the upper band. This implies a 0% gain per share, suggesting tepid speculative activity in the unofficial market ahead of the issue. However, institutional and anchor interest could still drive demand as the subscription window nears.

IPO structure, dates, and bidding details

The Rs 1,590 crore IPO comprises only a fresh issue, with no offer-for-sale (OFS) component. All proceeds will flow directly to Kalpataru for debt reduction and business growth. The allotment is expected to be finalized on June 27, with a tentative listing date of July 1 on both the BSE and NSE.

Retail investors can bid for a minimum of one lot comprising 36 shares, which requires an investment of Rs 13,932 at the floor price and Rs 14,904 at the cap price. Small non-institutional investor applicants must bid for at least 14 lots (504 shares) worth Rs 2,08,656, while big non-institutional investors need to apply for 68 lots (2,448 shares), amounting to Rs 10,13,472.

About the company

Established in 1988, Kalpataru Limited is a part of the larger Kalpataru Group and focuses on residential, commercial, and retail developments, including integrated townships. The company has delivered 70 projects and is currently working on 40 ongoing developments across cities such as Mumbai, Pune, Hyderabad, Bengaluru, and Indore.

Kalpataru’s group ecosystem also includes infrastructure and logistics subsidiaries such as Kalpataru Projects International and Shree Shubham Logistics, offering synergies across the real estate value chain.

Financials

Kalpataru posted a profit after tax of Rs 5.51 crore for the nine months ended December 2024, recovering from a loss of Rs 116.51 crore in FY24 and Rs 229.43 crore in FY23. The company reported revenue of Rs 1,699 crore for the same period. Its borrowings stood at Rs 11,056 crore as of December 31, 2024, against total assets of Rs 15,562 crore.

IPO proceeds

According to the red herring prospectus, Kalpataru plans to utilise Rs 1,192.5 crore of the net proceeds toward repayment or prepayment of borrowings at both the company and subsidiary levels. The remaining funds will be used for general corporate purposes.

Lead managers and registrar

ICICI Securities, JM Financial, and Nomura Financial Advisory and Securities (India) are the book running lead managers to the issue. MUFG Intime India Private Limited (Link Intime) is the registrar.

Also read | LG Electronics is said to consider resuming IPO of Indian unit

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)