Kalpataru IPO Opens June 24: What You Must Know Before Investing in the Rs 1,590 Crore Issue

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Kalpataru Limited, a prominent Mumbai-based real estate developer, is set to launch its initial public offering (IPO) on Tuesday, June 24, 2025. The IPO, entirely a fresh issue, aims to raise Rs 1,590 crore and is expected to attract strong interest from institutional and retail investors alike. Here's a comprehensive breakdown of the key details from the Red Herring Prospectus (RHP) to help you make an informed decision.

Key highlights of the IPO

The IPO will open on June 24 and close on June 26, 2025
Price band is set between Rs 387 and Rs 414 per share
The issue comprises a fresh issue of 3.84 crore equity shares; there is no offer-for-sale component
Allotment is expected to be finalized on June 27, with listing scheduled for July 1 on both NSE and BSE
Anchor investor bidding will take place on June 23

Company overview and land bank

Kalpataru has over three decades of experience in residential and commercial real estate, primarily in the Mumbai Metropolitan Region (MMR) and Pune
As of March 31, 2024, the company had 511.62 acres under development and an additional 1,886.10 acres in land reserves across Maharashtra, Gujarat, and Rajasthan
The development portfolio includes luxury, premium, and mid-income housing, as well as integrated townships and commercial spaces

Financial performance

Revenue for FY24 stood at Rs 1,930 crore, down from Rs 3,633 crore in FY23 due to one-time land sales in the previous year
The company posted a net loss of Rs 113.8 crore in FY24, an improvement from a Rs 226.7 crore loss in FY23
For the nine months ended December 2024, Kalpataru reported a net profit of Rs 8.66 crore, indicating a turnaround in operational performance

Use of proceeds

Rs 1,192.5 crore will be used to repay or prepay borrowings at both the company and subsidiary levels
The remaining funds will go toward acquiring land, development rights, and general corporate purposes

IPO structure and investor allocation

75 percent of the issue is reserved for Qualified Institutional Buyers (QIBs)
15 percent is allocated to Non-Institutional Investors (NIIs)
10 percent is reserved for retail investors

Retail investor details

Minimum application is one lot of 36 shares, requiring an investment of Rs 14,904 at the upper price band
Retail investors can apply for up to 13 lots, amounting to Rs 1,93,752

Risks and considerations

Kalpataru’s operations are heavily concentrated in MMR and Pune, making it vulnerable to regional market fluctuations and regulatory changes
The real estate sector remains sensitive to interest rate movements and funding availability
Despite recent profitability, the company has posted losses in the past two fiscal years, which may weigh on investor sentiment

Future outlook

Kalpataru’s IPO offers investors a chance to participate in the growth of a well-established real estate brand with a strong land bank and a diversified project pipeline. While the company’s financials show signs of recovery, investors should weigh the risks of geographic concentration and sectoral volatility before subscribing.

Sources: LiveMint, Business Standard, Financial Express, IPOWatch, Economic Times, Kalpataru RHP filings.