IPO Details
- Issue Dates: June 24–26, 2025
- Price Band: ₹387–414 per share
- Issue Size: ₹1,590 crore (entirely fresh issue, no offer-for-sale)
- Lot Size: 36 shares per lot
- Allocation: 75% QIB, 15% HNI, 10% Retail (plus a 5% employee quota with ₹38 discount per share)
- Lead Managers: ICICI Securities, JM Financial, Nomura India
- Registrar: Link Intime India
About Kalpataru Limited
- Kalpataru Limited is a Mumbai-based real estate developer founded in 1988.
- It operates in residential (luxury/premium/mid segments), commercial, retail, and township projects across India. The company has delivered over 70 completed projects (~24 million sq.ft.) and has around 25 ongoing projects (primarily in Mumbai and Pune), with presence also in Hyderabad, Indore, Bengaluru and Jodhpur.
- As of FY2024 it had about 1,100 employees. Kalpataru’s branding emphasizes family living and community, and its CSR focuses on women’s empowerment and family well-being.
Financials (Consolidated)
Kalpataru Limited – Restated Consolidated Financial Information (₹ Crores, except per share data and %)
| Particulars | As at/for 9 months ended Dec 31, 2024 | As at/for Fiscal ended March 31, 2024 | As at/for Fiscal ended March 31, 2023 | As at/for Fiscal ended March 31, 2022 |
|---|---|---|---|---|
| Revenue from operations | 1,624.74 | 1,929.98 | 3,633.18 | 1,000.67 |
| Total expenses | 1,651.02 | 2,125.28 | 3,874.52 | 1,387.59 |
| Profit / (loss) before tax | 47.32 | (95.70) | (158.74) | (138.27) |
| Profit / (loss) for the period/year | 5.51 | (116.51) | (229.43) | (125.36) |
| Other comprehensive income for the period / year (net of tax) | (0.74) | (1.27) | (6.38) | (0.23) |
| Total comprehensive income for the period / year | 4.77 | (117.77) | (235.81) | (125.59) |
| Profit / (loss) for the period/year attributable to Owners of the parent | 8.66 | (103.45) | (203.38) | (124.56) |
| Diluted earnings per equity share (₹) | 0.56 | (7.41) | (14.56) | (8.92) |
| Net asset value per equity share (₹) | 113.11 | 72.96 | 87.02 | 102.04 |
| Net worth/Total Equity attributable to owner of parent | 1,579.54 | 1,018.86 | 1,215.23 | 1,425.00 |
| Total Borrowings | 11,056.40 | 10,688.31 | 9,679.64 | 10,365.97 |
| EBITDA | 10.17 | (7.80) | (4.97) | (3.60) |
| EBITDA Margin (%) | 6.26 | (4.04) | (1.37) | (3.60) |
| Adjusted EBITDA | 51.63 | 44.88 | 195.93 | 18.07 |
| Adjusted EBITDA Margin (%) | 31.77 | 23.25 | 53.93 | 18.06 |
| Cash and cash equivalents as at the end of the period | (80.21) | 13.38 | 69.13 | 62.97 |
Anchor Investors
- Kalpataru Limited raised ₹708 crore from nine prominent anchor investors ahead of its IPO, allocating 1,71,09,783 equity shares at ₹414 per share. Among the international anchors, GIC (Singapore) and GSS Opportunities Investment (affiliated with Bain Capital) received the largest portions (together accounting for approximately 40% of the anchor allocation). On the domestic front, SBI Mutual Fund (13%), ICICI Prudential Mutual Fund (11%), SBI General Insurance (9%), Aditya Birla Sun Life Insurance (8%), and 360 ONE WAM (7%) were allotted significant stakes. The remaining allocation was distributed among Taurus Mutual Fund and Ayushmat Ltd, each receiving around 6% and 5% respectively.
Salient Points
- Use of Proceeds: Primarily to repay debt. The company intends to use most funds to repay borrowings of Kalpataru and its subsidiaries (~₹11,925 million by parent, ₹8,592 million by subsidiaries), with the balance for general corporate purposes.
- Business Model: Kalpataru follows an asset-light model – about 80% of its project pipeline is through joint development / joint venture arrangements, reducing upfront land costs.
- Revenue Breakdown: Concentrated in housing (residential) projects. Not much into redevelopment projects.
- Growth (CAGR): Revenue grew ~39% p.a. between FY22 and FY24, largely driven by land sale gains in FY23; PAT remained negative in those years (losses have narrowed in FY24).
- Margins: EBITDA margin spiked in FY23 due to exceptional land sale revenues, then normalized in FY24. PAT margin was around –6% in FY24.
- Land Bank: Owns ~49 million sq.ft. of saleable area (land reserves) in multiple cities, supporting future growth (potential sales ~₹63,500 crore).
- Projects nearing completion in major markets (MMR/Pune); pipeline includes mid-income and luxury segments.
- Risks: Geographic concentration in Mumbai/Pune (~95% of projects), high debt levels, and sensitivity to real estate cycles and interest rates. Delay in project approvals or sales slowdowns could impact cash flows.
- Strengths: Strong promoter track record (Kalpataru Group since 1969), established brand for quality projects, large project pipeline, and improved cash flow from recent sales. Institutional anchor support suggests confidence in the business plan.
Peers Comparison
| Companies | Revenue | EBITDA Margins | PAT Margins | D/E Ratio | Mcap/sales | P/E |
| Kalpataru (FY 24) | 1,929.98 Cr. | -4.04% | -6% | 10.49 | 4.4 | Loss |
| Oberoi Realty (FY 25) | 5,286 Cr. | 58.7% | 42.1% | 0.21 | 13.7 | 33.4 |
| Macrotech Developers (FY25) | 13,780 Cr. | 28.9% | 20.1% | 0.35 | 10.6 | 53.1 |
| Godrej Properties (FY25) | 4,923 Cr. | -1.5% | 28.2% | 0.73 | 14.7 | 52 |
| Sunteck Realty (FY25) | 853 Cr. | 21.8% | 17.6% | 0.12 | 1.98 | 43 |
| Mahindra Lifespace(FY25) | 372 Cr. | -46.6% | 16.5% | 0.76 | 20.6 | 125 |
| Keystone Realtors (FY25) | 2,004 Cr. | 10.2% | 9.4% | 0.34 | 3.54 | 41.3 |
| Prestige Estates (FY25) | 7,349 Cr. | 34.2% | 8.4% | 0.85 | 10.1 | 159 |
Grey Market Premium
Kalpataru’s grey market premium is about ₹9 per share (roughly 2%), indicating a modest premium over the IPO price band.
Management Commentary
Management highlights Kalpataru’s strong brand and execution capability in the Mumbai region and its asset-light approach (majority of projects via JVs/JDAs). They stress the need for deleveraging and note that the IPO proceeds will reduce debt significantly. They are focused on completing existing projects, enhancing sales, and maintaining customer trust. They acknowledge cyclicality in real estate but expect demand to remain robust in key markets as housing sentiment improves.
Opinion
The Kalpataru Limited IPO looks suitable for as a Long-term (Apply) only. I will skip this IPO. While Kalpataru’s IPO offers exposure to a well-known Mumbai-based developer with a large project pipeline and improved leverage post-IPO, current financials show losses and valuation is high,