Kalpataru Limited, a prominent name in the Indian real estate sector, recently closed its ₹1,590 crore Initial Public Offering (IPO). Despite its vast portfolio and brand recall, the company’s financial health raises concerns, and the lack of premium in grey market trading (GMP) has added to investor scepticism.

Here’s a comprehensive review of Kalpataru Limited’s IPO, covering subscription status, financial metrics, valuation, GMP trends, and whether retail investors should hold high hopes for listing day gains.

About Kalpataru Limited

Kalpataru Limited is a real estate development company involved in residential, commercial, and retail projects across major Indian cities including Mumbai, Pune, Bengaluru, Hyderabad, and Indore. With over 113 completed projects, the company has deep experience across premium and mid-income housing as well as integrated mixed-use developments.

The firm undertakes end-to-end real estate operations—from land acquisition to construction and sales—providing it operational control and cost-efficiency in project execution.

IPO Structure and Details

Kalpataru’s IPO is a Book Built Issue comprising a pure Fresh Issue of:

• ₹1,590 crore

• 3.84 crore equity shares (38,405,000 shares)

IPO Timeline:

• Opened: June 24, 2025

• Closed: June 26, 2025

• Allotment Date: June 27, 2025

• Tentative Listing Date: July 1, 2025

• Listing Exchanges: BSE & NSE

IPO Price Band and Investment Details

• Price Band: ₹387 to ₹414 per share

• Lot Size: 36 shares

• Retail Minimum Investment: ₹14,904

• HNI Minimum Investment: 14 lots (504 shares) worth ₹2,08,656

• Market Capitalisation at ₹414: ₹8,524.06 crore

Use of IPO Proceeds

The entire issue amount of ₹1,590 crore will be used for:

• General corporate purposes

• Strengthening the company’s balance sheet

• Project development and working capital needs

This fresh capital will support expansion and execution across existing and new real estate projects.

Anchor Investors Participation

Kalpataru Limited successfully raised ₹708.34 crore from Anchor Investors a day before the issue opened:

• Shares allotted at upper price band of ₹414

• Total shares allotted: 1,71,09,783 equity shares

Anchor Investors are part of the Qualified Institutional Buyers (QIBs) quota and are often seen as early indicators of institutional confidence.

Subscription Status as of Final Day

The IPO saw decent demand with total subscription standing at 2.26 times as of 7:00 PM on June 26, 2025.

• Retail Portion: Subscribed modestly

• QIB Portion: Saw significant interest due to anchor investment

• NII Portion: Subscribed, but not oversubscribed heavily

While the numbers indicate demand, it's worth noting that subscription does not guarantee listing gains, especially when GMP is flat.

Grey Market Premium (GMP) Trends

As of June 19, 2025:

• GMP: ₹0

• Expected Listing Price: ₹414

• Premium Gain: 0%

This suggests that no real price discovery is happening in the grey market, often a sentiment indicator among traders.

⚠️ Note: Grey Market Premium is unofficial and unregulated. It reflects unorganised demand and should be viewed only for informational purposes.

Financial Performance Snapshot

Kalpataru’s revenue and profitability have shown high volatility over the years:

Although FY25 indicates a return to profitability, the company has struggled to deliver consistent bottom-line performance.

Valuation & Ratios

Key metrics (based on FY24 financials):

• Pre-Issue EPS: ₹ -7.41

• Post-Issue EPS: ₹ -5.02

• Pre-Issue P/E Ratio: -55.87x

• Post-Issue P/E Ratio: -82.40x

• Industry Average P/E: 36x

• ROE: -10.15%

• RoNW: -10.15%

• Annualised EPS: ₹0.56

• Annualised P/E Ratio: 738.06x

These numbers suggest that the IPO is fully priced or even overvalued, especially in comparison with profitable peers in the real estate sector.

Allotment Process – How to Check Status

The IPO allotment date is June 27, 2025. Here’s how investors can check the allotment status:

1. Visit the registrar website – Link Intime India Pvt Ltd

2. Select Kalpataru Limited IPO from the dropdown

3. Enter PAN / Application No. / DP Client ID

4. Submit the details to check your allotment status

If allotted, shares will be credited to the demat account before listing on July 1, 2025.

Book Running Lead Managers (BRLMs)

• ICICI Securities Limited

• JM Financial Limited

• Nomura Financial Advisory and Securities (India) Private Limited

These are among India’s top merchant bankers, ensuring smooth IPO execution and institutional placements.

Should You Invest in Kalpataru IPO?

Pros:

• Experienced player in real estate with 113+ completed projects

• Presence across multiple high-growth Indian cities

• Return to profitability seen in recent 9-month period (FY25)

Cons:

• Negative EPS and losses in FY23 and FY24

• Flat GMP implies no listing day demand

• Valuations are very high compared to peers with better profitability

• Real estate sector often faces cyclical headwinds and regulatory risks

Final Verdict: Avoid for Listing Gains, Watch for Long-Term Execution

While the 2.26x subscription indicates decent demand, investors are advised to avoid the Kalpataru IPO for listing gains. The company’s financials remain shaky, and valuation leaves little room for immediate upside.

If Kalpataru can demonstrate consistent profitability and execution in future quarters, it may become an attractive long-term real estate play. For now, short-term investors may stay cautious.

The Upcoming IPOs in this week and coming weeks are Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

The Current active IPO are Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences, Suntech Infra Solutions, Rama Telecom, Supertech EV, Sambhav Steel Tubes, HDB Financials.

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