Mumbai is becoming younger through redevelopment, says Parag Munot, Managing Director of Kalpataru Ltd, a Mumbai-based developer raising ₹1,590 crore through an IPO, a portion of which will also be invested in redevelopment projects.

“After DCR (Development Control Regulations) of Mumbai changed there has been a good growth in redevelopment. Mumbai is becoming younger. It is getting redeveloped with modern amenities. We have increased our portfolio of redevelopment. Now 75 percent of development is on our own land, while 25 per cent is from redevelopment, joint venture, joint development,” Munot told businessline during an interaction in Ahmedabad, where he was present to promote the company’s IPO.

“Although redevelopment, JDA (joint development agreement) and JV (joint-venture) projects comprise a relatively small proportion of our development portfolio in terms of developable area, we believe this asset light approach may be a source of growth for our business in the future. Mumbai, particularly in South Central and select Western Suburbs areas such as Bandra, Santacruz, Khar, and Juhu, has scarce land for greenfield development. New projects primarily stem from redevelopment initiatives, including old residential properties, industrial sites, conglomerate -owned land, and slums. We believe that redevelopment projects will be an important means for obtaining land in the MMR, and we intend to increase our focus on participating in redevelopment projects,” he added. The company has so far executed 11 redevelopment projects in Mumbai.

Of the total ₹1,590 crore raised through the IPO, a significant portion of ₹1,192 crore will be spent on repaying four loans, including ₹500 crore to HDFC Bank, ₹131 crore to PNB Housing Finance, ₹50 crore to HDFC Capital Advisors Ltd and ₹110 crore to PAG. A portion of the ₹398 crore from the IPO proceeds will go into business development, including  new projects and a five-acre redevelopment project in Suman Nagar in Chembur. As of December 2024, the company has five redevelopment projects with a total developable are of 2.38 million square feet in its portfolio.

Munot said that even after the IPO, the company, which has launched projects in Noida  and Hyderabad, will remain focussed on MMR, Pune and Thane regions. “The infrastructure development happening in Mumbai -- be it metro, bullet train project, atal setu bridge, coastal road --- the mobility and connectivity is improving and adding to the development potential of Mumbai market. We are present in all the seven micro markets of Mumbai and this infrastructure development will help our growth story,” said Narendra Lodha, executive director of the company.

Kalpataru has 25 ongoing projects aggregating 24.83 million square feet across Mumbai, Thane, and Pune. An additional 16.33 million square feet in 6 forthcoming projects will be launched in the next 18 months, and 7.81 million square feet of five projects will be launched in 2-3 years. About 95 per cent of the total 48.97 million square feet of projects are residential.

Published on June 21, 2025