Kalpataru Ltd’s ₹1,590 Crore IPO: A New Chapter on Dalal Street
Introduction
Mumbai-based real estate developer Kalpataru Ltd is set to launch a purely fresh equity issuance worth ₹1,590 crore from June 24 to June 26, 2025. This IPO, comprising only new shares, aims to support the company’s debt reduction and strategic growth plans.
Use of Funds
The company plans to deploy approximately:
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₹1,192.5 crore to reduce debt (total borrowing stood at ₹10,186.6 crore as of April 2025)
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The remaining capital will fund general corporate purposes
Company Overview
Kalpataru is a prominent player in the Mumbai Metropolitan Region, extending to Pune, Hyderabad, Noida and more.
As of December 2024, it had completed 120 projects covering 25.87 million sq ft, with current activity spanning Maharashtra, Telangana, Madhya Pradesh, Karnataka, and Rajasthan.
The firm develops across various segments—luxury, premium, mid-income residential, commercial, retail, gated communities, and integrated townships.
It competes with major listed peers like Oberoi Realty, Lodha Developers, Godrej Properties, Prestige Estates, Mahindra Lifespaces, and Sunteck Realty.
Ownership & Leadership
Promoted by Mofatraj P. Munot and Parag M. Munot, Kalpataru maintains strong promoter control. Assisted by merchant bankers ICICI Securities, JM Financial, and Nomura, the IPO is backed by experienced advisors.
Financial Snapshot & Market Position
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FY24 consolidated revenue: ₹2,029.9 crore (down from ₹3,716.6 crore in FY23)
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FY24 PAT: Loss reduced to ₹113.8 crore from ₹226.8 crore in FY23.
Despite recent losses, the company has narrowed its deficit and appears to be on a recovery trajectory. Still, substantial debt persists.
What It Means for Investors
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Debt reduction can alleviate financial strain and bolster balance sheet health.
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Real estate growth in valued regions like Mumbai and Pune remains promising.
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Risks include execution delays, cost overruns, lingering debt, land acquisition hurdles, and sector competition.
Final Thoughts
Kalpataru’s fresh-issue IPO offers investors a stake in a sizeable, Mumbai-centric real estate firm with clean capital inflow and debt reduction goals. However, investors should weigh:
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The high leverage
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A history of operational losses
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Sector-specific headwinds such as land costs and project delays
If you believe in its turnaround and are bullish on real estate in key urban centers like Mumbai, Kalpataru could represent a compelling opportunity. Conservative investors may wish to await further execution clarity post-listing.
Key Dates & Price Band
| Event | Date |
|---|---|
Anchor book build |
June 23, 2025 |
IPO opens for subscription |
June 24, 2025 |
IPO closes |
June 26, 2025 |
Allotment finalised |
June 27, 2025 |
Shares credited/Refunds |
June 30, 2025 |
Listing on BSE/NSE |
July 1, 2025 |
Reviewed by Aparna Decors
on
June 19, 2025
Rating:
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