Kalpataru Limited IPO: Investor's Guide
Background & Overview of IPO
Established in 1988, Kalpataru Limited has its headquarters in Mumbai, Maharashtra. It is part of the Kalpataru Group, a diversified conglomerate. Its peer, Kalpataru Projects International Ltd., is also a listed entity on the Indian stock exchanges.
Essential Tasks
- Planning, design, and land acquisition
- Building and implementation of projects
- Marketing, sales, and customer service
Project Footprint
(Effective March 31, 2024)
- Completed: 24.10 million sq ft (113 projects)
- Current: 22.02 million sq ft
- Future (2025–27): 19.93 million sq ft
- Land Reserves: 1,886.10 acres
Important Industry Colleagues
- Oberoi Realty Ltd.
- Macrotech Developers (Lodha) Ltd.
- Sunteck Real Estate Ltd.
- Mahindra Lifespace Developers Ltd.
- Prestige Estates Projects Ltd.
Key IPO Details
| Issue Type | Book-built fresh issue |
| Total Issue Size | ₹1,590 crore |
| Face Value | ₹10 per share |
| Fresh Equity Shares | Entire issue |
| Proposed Utilization of Funds | – Repayment/pre-payment of borrowings – General corporate purposes |
| Registrar | Link Intime India Pvt. Ltd. |
| Lead Managers | To be announced (TBA) |
| Price Band | TBA |
| Lot Size | TBA |
| Min. Application Value | TBA |
Important Dates
¹Tentative dates. Monitor official SEBI and company announcements for confirmation.
- DRHP Filing: August 15, 2024
- Tentative Issue Open: June 24, 2025¹
- Tentative Issue Close: ~June 27, 2025¹
- Allotment Finalization: ~3–4 days post-close
- Listing: ~5–7 days post-close
Financial Performance
All values in ₹ million.
| Metric | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
| Revenue | 19,299.84 | 36,331.82 | 10,006.73 |
| EBITDA | (780.12) | (496.67) | (359.77) |
| Net Profit/(Loss) | (1,138.06) | (2,267.87) | (1,215.49) |
| Total Assets | 102,675.23 | 93,719.01 | 73,208.56 |
| Total Borrowings | 106,883.09 | 96,796.43 | 103,659.65 |
| RoNW (%) | (9.80) | (16.43) | (8.45) |
| EPS (₹) | (7.21) | (14.37) | (8.65) |
Observation
Consecutive losses and negative Return on Net Worth (RoNW) signal high leverage and near-term profitability challenges. The company's borrowings exceeded its total assets in FY24, which is a significant concern for potential investors.
Investor Allocation & Application
Investor Categories & Allocation
SEBI-mandated reservation for the issue:
- Qualified Institutional Buyers (QIBs): 75%
- Non-Institutional Investors (NIIs): 15% (Applications > ₹2 lakh)
- Retail Individual Investors (RIIs): 10% (Applications ≤ ₹2 lakh)
- Employee Quota: Details regarding discount are yet to be announced.
Tips for Allocation
- Apply using multiple Demat accounts from family members (if allowed).
- Bid close to the upper price band or select the "cut-off" price option.
- Consider submitting your application early, preferably on the first day.
Application Process (e.g., via Angel One)
- Log In to the Angel One app or website.
- Navigate to IPOs and select the "Kalpataru IPO".
- Enter your UPI ID, desired quantity (lot size), and price.
- Submit the application and approve the payment mandate on your UPI app.
- Track allotment status in the IPO section or via email/SMS from the registrar.
Grey Market Premium (GMP)
Grey Market Premium (GMP) is an unofficial indicator of listing day demand. As of now, there is no active GMP because the price band is not announced. It typically becomes active 2-4 days before the issue opens.
Investor Tip: Use GMP data with caution as it is speculative. However, tracking it on reputable monitors (like IPO Watch) can provide a sense of market sentiment.
Risk Factors & Conclusion
Key Risk Factors
- Leverage Risk: Total borrowings exceeded total assets in FY24, indicating a highly leveraged balance sheet.
- Profitability Issues: The company has reported consistent EBITDA and net losses for the last three fiscal years.
- Market Sentiment: The real estate sector is cyclical and highly sensitive to economic conditions and regulatory changes.
- Execution Risk: Projects may face delays in roll-out or sales due to economic headwinds.
Recommendations
- Wait for Price Band & Dates: The valuation will heavily depend on the announced price band.
- Monitor GMP Post-Announcement: Keep an eye on the grey market to gauge market mood once the price is known.
- Research Competitive Positioning: Compare its valuation and prospects against peers like Oberoi Realty, Lodha, and Prestige.
- Evaluate Balance Sheet: Look for any signs of balance sheet improvement (debt reduction, margin recovery) in pre-IPO announcements or recent filings.