Kalpataru Limited's ₹1,590cr IPO opens today: Should you bid?
What's the story
Kalpataru Limited, a Mumbai-based real estate development company, launched its initial public offering (IPO) today. The company is looking to raise ₹1,590 crore through this public issue. Ahead of the IPO opening, Kalpataru had raised ₹708 crore from anchor investors including GIC Singapore and GSS Opportunities Investment (Bain Capital). Domestic investors such as SBI MF and ICICI Prudential MF also participated in this round.
Subscription specifics
IPO price band, lot size, and market cap
The shares in Kalpataru's IPO are being offered in a price band of ₹387 to ₹414 per share. Investors can bid for a minimum of 36 shares in one lot and in multiples thereof. The public offer consists of a fresh issue of shares worth up to ₹1,590 crore, which will be received by the company. At the upper end of the price band, Kalpataru's total market capitalization will be around ₹8,524 crore.
Fund allocation
Kalpataru plans to use ₹1,193 crore to repay debt
The proceeds from the IPO, worth ₹1,193 crore, will be used to reduce the company's debt. As of April 2024, Kalpataru's total debt stood at ₹10,186.6 crore. The company's Managing Director Parag M Munot expressed confidence in the success of their IPO despite global conflicts and economic uncertainties. He said India's growth story is intact and driving demand across sectors including real estate.
Market outlook
Investment risks and growth opportunities
Kalpataru is a leading developer in the MMR and Pune regions, with a strong pipeline of projects. The company focuses on luxury, premium, and mid-income residential, commercial, retail projects as well as integrated townships. It has 40 ongoing projects and has completed 70 projects as of March 31, 2024. Despite some risks due to regional concentration and residential focus, its deleveraging efforts and expansion into high-growth cities strengthen its long-term outlook.
IPO timeline
IPO share allotment and listing date
The allotment for the Kalpataru IPO is expected to be finalized on June 27. The issue will be listed on BSE and NSE with a tentative listing date fixed as July 1. ICICI Securities, JM Financial, Nomura Financial Advisory And Securities (India) Pvt Ltd are the book running lead managers of this public offering while Link Intime India Private Limited is its registrar. Bajaj Broking has recommended subscribing to the IPO, particularly with a long-term view.