India’s real estate space is buzzing in action again. This time with a marquee player entering the IPO arena. Kalpataru, a well-known name in premium and mid-income housing, is set to raise Rs 1,590 crore through its upcoming public issue.
From key dates to financial details, let’s take a look at 7 key factors of this issue ahead of its opening
Kalpataru IPO: Dates, size, and structure
Kalpataru’s IPO opens for the public on June 24 and will run through June 26. The anchor investors are scheduled a day earlier on June 23.
The Rs 1,590 crore issue is entirely a fresh issue. This means that there is no Offer for Sale (OFS) component and all the funds raised will go directly into the company’s expansion and debt reduction plans.
Kalpataru IPO: Price band and lot size
The company has set a price band between the range of Rs 387 to Rs 414 per share. Retail investors can apply for a minimum of one lot (36 shares), costing between Rs 13,932 to Rs 14,904 depending on the final price.
Apart from this, small non-institutional investors need to apply for at least 14 lots (Rs 2.08 lakh). Similarly, large NIIs must bid for 68 lots (Rs 10.13 lakh).
Kalpataru IPO: GMP ahead of opening of the issue
At the time of writing, the grey market premium (GMP) for Kalpataru IPO is Rs 0. This so far indicates a muted speculative activity. That means the unofficial market sees no immediate upside over the upper price band of Rs 414.
However, it is important to note that this is not always a reflection of actual demand and may change closer to listing.
Kalpataru IPO: Where the money will go
Of the total funds raised, Rs 1,192.5 crore will be used to repay or prepay existing borrowings, both at the company and its subsidiaries.
The rest will go towards general corporate purposes, helping Kalpataru strengthen its financial position and fund upcoming projects.
Kalpataru IPO: About the company
Established in 1988, Kalpataru is known for its residential and commercial developments, particularly in the Mumbai Metropolitan Region (MMR) and Pune. In addition to this, the company also has a presence in Hyderabad and Noida as well.
It is more interesting to note that the firm is part of the larger Kalpataru Group. The group has keen interests in infrastructure, power transmission, logistics, and civil engineering through its sister companies.
Kalpataru IPO: Financial performance
Kalpataru in the first nine months ending December 2024, posted a net profit of Rs 5.51 crore, recovering from a loss of Rs 116.5 crore in FY24. The company also reported revenue of Rs 1,699 crore for the nine-month period.
However, its debt levels remain high, with total borrowings at Rs 11,056 crore.
Kalpataru IPO: Who is managing the issue
The IPO is backed by heavyweights in the financial world. ICICI Securities, JM Financial, and Nomura are the book-running lead managers, while Link Intime (MUFG Intime India) is the registrar for the issue.