Kalpataru IPO Opens June 24: Key Details from Rs 1,590 Crore Issue

Real estate firm Kalpataru is stepping into the capital markets with a fresh issue of shares worth Rs 1,590 crore. The initial public offering (IPO), will remain open for subscription from June 24-26, 2025. The company is issuing 38.40 million equity shares, all of which are part of a fresh issue. No shares are being sold by existing shareholders.

The price range for the IPO is set between Rs 387 and Rs 414 per share. 

For retail investors, the minimum bid is one lot of 36 shares, amounting to Rs 14,904 at the top end of the band. Investors can apply for up to 13 lots.

The allocation split is standard: 75 per cent of the shares are reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and 10 per cent for the retail segment.

ICICI Securities, JM Financial, and Nomura are leading the IPO as book-running managers. Link Intime will handle the registrar duties.

Three Decades in Realty Projects in Western India

Kalpataru, based in Mumbai, has been building homes and commercial properties for over 30 years in Maharashtra, particularly in the Mumbai Metropolitan Region (MMR) and Pune markets that continue to be its stronghold. Its business model centres on premium and mid-segment housing, and includes apartments, duplexes, villas and plotted communities. It is also active in commercial projects, retail developments, integrated townships, and redevelopment work. 

As of March 31, 2024, the firm had 511.62 acres under development, translating to a buildable area of 49.77 million square feet. That breaks down into 267.24 acres of ongoing construction, 121.32 acres of upcoming work, and 123.06 acres in the planning phase. Notably, two-thirds of its residential development  around 33.69 million square feet  is concentrated in the MMR region.

Outside of active projects, Kalpataru also holds land reserves totalling 1,886.10 acres, scattered across Surat, Pune, Nagpur, Udaipur, and Shirol in western India.

Competing in Real Estate's Big Leagues

Kalpataru is operating in one of the country’s most competitive real estate corridors. 

According to a report from Anarock, its rivals include some of the biggest names in the business, such as Lodha, Godrej Properties, Oberoi Realty, Rustomjee, Mahindra Lifespace, Prestige, and Sunteck Realty.

Financials Tell a Mixed Story

The company isn’t profitable, at least not yet. In FY24, Kalpataru clocked Rs 1,930 crore in revenue and Rs 449 crore in adjusted earnings before interest taxation depreciation and amortisation (Ebitda). 

However, it posted a net loss of Rs 113.80 crore. In FY23, revenue had touched Rs 3,633 crore due to one-time land sales and income from subsidiaries, but that year also ended in a loss of Rs 226.70 crore.

Risk Factors Noted in the RHP

There are clear risks. The biggest is its geographic concentration. With a heavy focus on MMR and Pune, any disruption, regulatory hiccups, policy shifts, or a dip in demand could hit business hard. The sector’s broader vulnerabilities also apply: rising interest rates, shifts in consumer mood, and uncertain funding flows.

Why the IPO?

The company plans to channel the IPO funds into a mix of priorities: repaying loans, acquiring land, bankrolling general corporate needs, and investing in subsidiaries.

Timeline for Allotment and Listing

If things go as planned, share allotments will be finalised by June 27. Kalpataru is eyeing a listing on both the BSE and NSE on July 1, 2025.