Kalpataru Ltd’s ₹1,590-crore IPO saw improved but modest subscription levels on its second day, closing at 0.35 times overall subscription as of 5 PM on June 25, 2025. The retail segment led the response with 0.72 times subscription, while qualified institutional buyers (QIBs) remained cautious at 0.17 times subscription.
The real estate developer’s public offering showed gradual momentum building, with non-institutional investors subscribing 0.45 times their allocated portion and the employee quota reaching 0.38 times subscription. Foreign institutional investors dominated the QIB category, accounting for most of the ₹20.73-crore worth of bids in that segment.
Market observers noted that QIB participation typically accelerates on the final day of IPO bidding, as institutional investors often wait until the last day to assess overall market sentiment and retail demand before committing. The IPO closes on June 26, with industry watchers expecting the traditional final-day surge in institutional participation.
The company had earlier secured strong anchor investor backing, raising ₹708 crore from nine marquee investors, including GIC Singapore and Bain Capital at the upper price band of ₹414 per share. This anchor allocation, representing 1.71 crore shares, provided a foundation for the public offering.
Kalpataru plans to use ₹1,192.5 crore from the net proceeds for debt repayment across the company and subsidiaries, addressing its current net gearing ratio of 86.5 per cent. The Mumbai-based developer recently returned to profitability, recording ₹8.7-crore net profit in the nine months ended December 2024, after three consecutive years of losses.
“Kalpataru Ltd’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 emphasised that success depends on the company’s ability to sustain profitable growth and reduce leverage effectively.
The company operates across the Mumbai Metropolitan Region and Pune, with an expanding presence in other metros. Its portfolio includes 120 completed projects spanning 25.87 million sq ft and land reserves exceeding 1,886 acres.
With QIBs historically driving final-day subscription momentum in IPOs, market participants will closely watch institutional investor response on the closing day to gauge the offering’s ultimate success.