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The retail portion was subscribed 79%, followed by non-institutional investors (NIIs) at 50%. The qualified institutional buyer (QIB) segment saw 17% subscription, while the employee quota stood at 42%.
In the grey market, Kalpataru shares were quoting a premium of Rs 5–6, implying a potential gain of about 1% over the upper end of the price band.
The IPO, priced between Rs 387 and Rs 414 per share, comprises a 100% fresh issue of 3.84 crore shares. Bidding will close on June 26, and the shares are expected to list on July 1. The company plans to utilise proceeds primarily to repay borrowings of itself and its subsidiaries, amounting to Rs 1,193 crore. Post-listing, promoter shareholding will decline from 100% to 81.3%.
Founded in 1988, Kalpataru has developed over 25.9 million sq. ft. across Mumbai, Thane, Pune, Hyderabad, and other cities. It operates under the Kalpataru Group, known for its infrastructure and EPC expertise. Kalpataru focuses predominantly on high-end and luxury residential projects and holds land reserves of over 1,886 acres across Maharashtra, Gujarat, and Rajasthan.
As of December 2024, it had 25 ongoing, six forthcoming, and five planned projects spanning 49 million sq. ft., with 95% of its portfolio concentrated in MMR and Pune. The company is also expanding through joint ventures and redevelopment in land-scarce MMR zones.Despite a strong project pipeline and brand value, the company reported low profitability—posting a PAT margin of just 0.3% and an ROE of 0.4% in 9MFY25. Adjusted EBITDA margin stood at 31.8%, but reported EBITDA was just 5%. Analysts cite high capitalized interest and a change in revenue recognition policy for the tepid profitability.At the upper band, the IPO values Kalpataru at 186.3x EV/EBITDA (FY25), significantly above sector averages. SBI Securities and KR Choksey have both assigned a “NEUTRAL” rating to the IPO, citing high debt, valuation concerns, and need for sustained pre-sales traction post-listing to justify premium.
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