Kalpataru Limited, a Mumbai-based real estate development company, is launching its Initial Public Offering (IPO) to raise ₹1,590 crore through a fresh issue of equity shares. The IPO opens on Tuesday, June 24, 2025, and will close on Thursday, June 26, 2025. The company has not included an Offer for Sale (OFS) component, making it a fully fresh equity issue.

Kalpataru IPO Details

IPO Reservation Split

About Kalpataru Limited

Established in 1988, Kalpataru Limited is a prominent real estate development firm headquartered in Mumbai, Maharashtra. The company operates in residential, commercial, retail, and integrated township development across key Indian cities.

Key Locations of Operation:

• Mumbai

• Thane

• Panvel

• Pune

• Hyderabad

• Indore

• Bengaluru

• Jodhpur

It is a part of the Kalpataru Group, which includes:

• Kalpataru Projects International Limited

• Property Solutions (India) Pvt. Ltd

• Shree Shubham Logistics Ltd

• And several other subsidiaries

As of March 31, 2024, Kalpataru is actively handling 40 ongoing projects and has successfully completed 70 projects since inception.

Peer Comparison (P/E Ratios)

The company’s pricing at ₹387–414 per share translates to floor and cap prices at 38.7x and 41.4x the face value of ₹10, which makes it competitive in terms of valuation, especially against listed peers in the real estate segment.

Objectives of the IPO

The net proceeds from the IPO will be utilised for the following:

• Repayment or prepayment of borrowings availed by the company and its subsidiaries

• General corporate purposes, including working capital needs and expansion

This strategy aligns with Kalpataru’s aim to strengthen its balance sheet and support the ongoing and future development projects.

Financial Snapshot (from RHP)

Kalpataru’s latest financials are awaited in full from the final prospectus, but the company boasts a long and credible track record with a diversified portfolio and a strong parentage from the Kalpataru Group.

The focus on Tier-1 and Tier-2 cities across India helps the company leverage real estate growth cycles while tapping demand for urban housing, commercial spaces, and mixed-use infrastructure.

Strengths of Kalpataru IPO

1. Established brand in India’s urban real estate landscape

2. Large and diversified project portfolio across major Indian cities

3. No OFS, hence no promoter exit — shows promoter confidence

4. Strong parentage from the Kalpataru Group, offering synergy across logistics, infrastructure, and real estate

5. Discounted shares for employees, encouraging participation and internal trust

Risks and Concerns

1. Real estate industry is cyclical and depends on broader economic factors

2. Regulatory changes, including RERA and environmental compliance, can impact project timelines

3. Rising interest rates may slow housing demand in Tier-1 cities

4. Any delays in ongoing 40 projects could impact cash flow

5. Heavy QIB reservation (75%) limits retail allocation

Grey Market Premium (GMP)

As of now, no confirmed GMP data is available. However, early grey market trends and institutional interest—especially with a robust anchor book expected—could result in moderate to good listing gains.

Final Recommendation: Apply with Caution

Kalpataru IPO comes from a strong real estate pedigree and shows robust operational credentials. While:

• The pricing is moderate compared to high P/E peers

• The real estate market is recovering, especially in residential and integrated townships

• There’s no OFS, which is a positive indicator

The low retail quota (10%) and cyclical nature of the sector may limit short-term upside.

We recommend:

• Retail investors: Apply only if you are comfortable with the real estate sector’s medium-term dynamics

• HNI/QIB investors: Potentially attractive, given the institutional participation structure and debt reduction focus

Would you like:

• A subscription tracker for this IPO starting June 24?

• Real-time GMP updates?

• A comparison table of Kalpataru vs Oberoi, Lodha, and Godrej Properties?

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  Disclaimer:
  This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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