Kalpataru Limited, a reputed integrated real estate development company, is launching its Initial Public Offering (IPO) from June 24 to June 26, 2025, aiming to raise ₹1,590.00 Crores. The issue is entirely a Fresh Issue comprising 384.05 lakh equity shares. The IPO price band has been fixed between ₹387 to ₹414 per equity share, and the market capitalisation at the upper band stands at ₹8,524.06 Crores.

Kalpataru Limited has built its name through over 113 completed projects across Mumbai, Thane, Panvel, Pune, Hyderabad, Indore, Bengaluru, and Jodhpur. The company is known for developing luxury, premium, and mid-income residential, commercial, and retail properties, and manages the entire value chain—from land acquisition and design to construction and sales.

As the IPO opens on June 24, 2025, and closes on June 26, 2025, potential investors are eagerly evaluating the offering, especially given the IPO's valuation, grey market sentiment, and financial fundamentals. The allotment date is scheduled for June 27, 2025, and listing is expected on July 01, 2025 on both BSE and NSE.

The IPO lot size is 36 shares, and the minimum investment required for retail investors is ₹14,904. For High-Net-Worth Individuals (HNIs), the minimum application is 14 lots, totaling 504 shares, which amounts to ₹2,08,656.

The IPO is being led by ICICI Securities, JM Financial, and Nomura Financial Advisory and Securities (India) as the book running lead managers, and Link Intime India Private Limited is acting as the registrar for the issue.

Financial Performance and Valuation

From a financial standpoint, the company’s performance has been inconsistent and even negative in the past few years:

• Revenue from operations stood at

  • ₹16,994.89 Million (Dec 31, 2024)

  • ₹20,299.36 Million (FY24)

  • ₹37,166.11 Million (FY23)

  • ₹12,485.54 Million (FY22)

• EBITDA figures reflected volatility:

  • ₹1,513.22 Million (Dec 31, 2024)

  • ₹ -288.28 Million (FY24)

  • ₹33.85 Million (FY23)

  • ₹2,008.48 Million (FY22)

• Profit After Tax (PAT) remained negative for three consecutive fiscal years:

  • ₹55.11 Million (Dec 31, 2024)

  • ₹ -1,165.07 Million (FY24)

  • ₹ -2,294.33 Million (FY23)

  • ₹ -1,253.62 Million (FY22)

These figures show that Kalpataru Limited has not reported consistent profitability, and the current offering is coming at a time when its financial turnaround is still in question.

The earnings per share (EPS) for FY24 pre-issue is ₹ -7.41 and post-issue is ₹ -5.02. The price-to-earnings (P/E) ratio post-issue is -82.40x, which is considerably high, especially when compared to the industry average P/E of 36x.

The Return on Equity (ROE) and Return on Net Worth (RoNW) are both -10.15%, indicating negative shareholder returns. The Annualised EPS stands at ₹0.56 and annualised P/E ratio soars to 738.06x, suggesting that the IPO may be aggressively priced.

Kalpataru IPO GMP (Grey Market Premium)

As of the latest update on June 19, 2025, the Grey Market Premium (GMP) for Kalpataru Limited IPO is ₹0, meaning there is no visible premium or discount in unofficial markets. This suggests that listing gains may be negligible or even negative.

It’s important to note that GMP is unofficial, unregulated, and not a reliable predictor of listing price. The lack of premium in the grey market reflects low investor sentiment and uncertainty around the listing performance.

IPO Objectives

Kalpataru Limited plans to utilise the Net Proceeds from the IPO for the following:

1. ₹1,192.50 Crores will be used for repayment or pre-payment of certain borrowings availed by the company and its subsidiaries.

2. The remaining amount will be used for general corporate purposes.

This objective indicates the company’s intent to de-leverage its balance sheet, which is often a sign that the IPO is not being used for expansion but for financial restructuring.

Kalpataru IPO Subscription and Allotment

The IPO will open for subscription from June 24 to June 26, 2025. Interested investors can subscribe via their respective broker platforms or through the ASBA facility.

The allotment status can be checked on the Link Intime India Pvt Ltd website after June 27, 2025. Steps include:

• Visiting the allotment status page

• Selecting Kalpataru Limited IPO

• Entering application number/PAN/DP Client ID

• Submitting to view status

Promoters and Leadership

The company is promoted by Mr. Mofatraj P. Munot and Mr. Parag M. Munot, who have over five and three decades of experience respectively in the Indian real estate market. While the promoters bring strong industry credentials, the company’s financials do not yet reflect robust management performance in recent years.

Final Verdict – Avoid for Listing Gains

Based on current valuation metrics, poor past financial performance, and the absence of Grey Market Premium, Kalpataru Limited IPO appears to be fully priced with minimal upside potential. Retail and HNI investors looking for listing gains are advised to exercise caution. The negative earnings, high P/E ratio, and low return on equity indicate that this may not be a favourable entry point into the stock.

This IPO might be suitable for long-term investors who have confidence in the real estate sector turnaround and are willing to wait for potential post-debt restructuring performance improvements. However, for short-term gains or momentum-based strategies, this offering may not be ideal.

Disclaimer:
This article is meant for informational and educational purposes only. It does not constitute investment advice or a recommendation to buy or sell any security. Investors must conduct their own due diligence and consult financial advisors before making investment decisions. All data presented is based on publicly available sources and reflects the status as of the date of publication.

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