Kalpataru IPO Day 3: Subscription Status, GMP, and Should You Apply?

Image Source: Finowings

Kalpataru Limited’s ₹1,590 crore IPO enters its final day with a muted response from the market. Here’s a real-time review of the subscription status, grey market premium (GMP), and whether investors should consider applying.

Key Highlights:

Subscription Status: As of Day 3, the IPO is subscribed just 35% overall. Retail investors have shown the most interest, with 72% of their quota booked. Non-institutional investors (NIIs) are at 45%, while qualified institutional buyers (QIIs) lag at just 17%. The employees’ portion is at 38%. The issue closes today.
Grey Market Premium (GMP): The GMP is nearly flat, with unlisted shares trading at ₹417—just ₹3 above the upper price band of ₹414. This suggests minimal listing gains are expected.
IPO Details: The offer is a 100% fresh issue of 38.4 million shares, priced between ₹387 and ₹414. The company aims to use ₹1,192.5 crore of the proceeds to repay debt, with the rest for general corporate purposes. Nine anchor investors, including GIC Singapore and SBI Mutual Fund, have already invested ₹708 crore at the upper price band.
Company Profile: Kalpataru is a prominent real estate developer with a strong presence in Mumbai and Pune, having completed 120 projects across India. However, recent financials show thin profitability and high debt, with a PAT margin of just 0.3% and a high post-issue valuation.
Analyst View: Brokerages are mixed. Some recommend subscribing only for the long term, citing brand strength and a strong project pipeline, but others flag high debt, weak profitability, and aggressive pricing as reasons to be cautious. Risk-averse investors may prefer to wait for post-listing performance.