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Kalpataru’s IPO, which opened on June 24 and closes on June 26, is priced between ₹387-₹414 per share.
Mumbai-based real estate developer Kalpataru Limited’s ₹1,590 crore IPO received a subdued response on its second day, with overall subscription at just 0.13 times as of 11.03 am on June 25, 2025. The retail segment showed relatively better traction at 0.48 times subscription, while institutional investors remained absent from bidding.
The IPO, which opened on June 24 and closes on June 26, is priced between ₹387-₹414 per share. Despite the slow public response, the company had secured ₹708 crore from nine marquee anchor investors at the upper price band of ₹414 per share, including GIC Singapore, Bain Capital’s GSS Opportunities Investment, SBI Mutual Fund, and ICICI Prudential Mutual Fund.
The company plans to utilise ₹1,192.5 crore from net proceeds for debt repayment across the company and its subsidiaries, with the remainder allocated for general corporate purposes. This forms part of Kalpataru’s strategy to reduce its net gearing ratio of 86.5 per cent as of December 2024.
Kalpataru showed signs of financial recovery in the nine months ended December 2024, posting a net profit of ₹8.7 crore after three consecutive loss-making years. Revenue from operations stood at ₹1,624.7 crore with an adjusted EBITDA margin of 31.8 per cent, compared to 23.3 per cent in FY24.
“Kalpataru Limited’s IPO presents a high-conviction bet on brand strength in Mumbai real estate, supported by a sizable project pipeline and significant land bank,” said Gaurav Garg from Lemonn Markets Desk. However, he cautioned that “the success of this offering will rest on the company’s ability to deliver profitable growth, reduce leverage, and compete effectively against better-capitalised peers.”
The company has a portfolio of 120 completed projects covering 25.87 million sq ft and maintains land reserves of over 1,886 acres. Its operations span Mumbai Metropolitan Region, Pune and expanding presence in Hyderabad, Noida, Nagpur and Indore.
Analysts note that while risk-averse investors may prefer waiting for consistent earnings visibility post-listing, aggressive investors seeking turnaround stories with strong asset backing might find the IPO compelling despite the current tepid market response.
Published on June 25, 2025
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