5 hours ago
The initial public offering (IPO) of Kalpataru Limited, a Mumbai-based real estate development company, will open for subscription on June 24. Ahead of the issue opening, the firm has raised ₹708 crore from anchor investors.
GIC Singapore, GSS Opportunities Investment (Bain Capital) are among prominent international anchor investors. Domestic investors include SBI MF, ICICI Prudential MF, SBI General Insurance, Aditya Birla Sun Life and 360 ONE WAM.
The issue will close for public bidding on Thursday, June 26.
What brokerages recommend?
Bajaj Broking has recommended subscribing to the IPO with a long-term view. While the issue appears aggressively priced at first glance, the brokerage believes well-informed investors may consider allocating funds for the long haul.
The brokerage said that 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 MMR region 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.
According to SMC Global, Kalpataru stands out as a leading developer in the MMR and Pune regions, backed by a robust pipeline, strong brand recall, and proven execution capabilities. Leveraging the Kalpataru Group's legacy, the company is well-positioned 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.
The realty developer will sell its 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 likely listing gain of 2% over the issue price.
However, it is important to note that grey market premiums are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.
The company's public offer comprises a fresh issue of up to ₹1,590 crore. This means the offer money will be received by the company.
Considering the upper end of the price band, the total market capitalisation of the company will be around ₹8,524 crore.
Proceeds from the issue worth ₹1,193 crore will be used to reduce debt. As of April 2025, the company's total debt stood at ₹10,186.6 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 said that India's growth story is intact, driving demand across sectors, including real estate.
The real estate developer that competes with listed entities such as Oberoi Realty, Lodha Developers, Godrej Properties, Keystone Realtors, Prestige Estates Projects, Sunteck Realty, and Mahindra Lifespace Developers is prominent in the Mumbai Metropolitan Region.
Kalpataru Ltd is part of the Kalpataru Group, which includes Kalpataru Projects , Property Solutions (India), Shree Shubham Logistics , and their respective subsidiaries, among others.
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.
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, while the issue will be listing on BSE, NSE with a tentative listing date fixed as July 1.
