IPO Report - Kalpataru Ltd By Choice Broking Ltd
Salient features of the IPO:
* Kalpataru Ltd. (Kalpataru), is an integrated real estate development company involved in all key activities associated with real estate development, including the identification and acquisition of land, planning, designing, execution, sales, and marketing of the projects is coming up with an IPO to raise around Rs. 1590cr, which opens on 24th June. and closes on 26th June. 2025. The price band is Rs. 387 - 414per share.
* The IPO solely comprises of fresh issue (Rs. 1590cr). From the fresh issue net proceeds, the company will be utilizing Rs. 1192.5cr for Repayment/pre-payment, in full or in part, of certain borrowings availed by the Company and the subsidiaries. Residual proceeds will be used for general corporate purposes.
* Post-IPO, the P&PG and public shareholders will have 81.3% and 18.7% stake in the company, respectively.
Key competitive strengths:
* Prominent presence in MMR and Pune, spanning diverse micro-markets and price segments
* Strong brand known for selling throughout construction phases • Healthy pipeline with clear near-term cash flow visibility
* Proven integrated execution—land acquisition to sales—with economies of scale and timely delivery
* Leader in green, sustainable, and innovative building design (e.g., LEED Platinum at Kalpataru Square)
* Backed by Kalpataru Group’s multinational EPC, logistics, and infrastructure expertise
Risk and concerns:
* General slowdown in the global economic activities
* Net losses may continue, weakening finances, operations, cash flows, and share price.
* 95 % of projects and sales are residential and heavily concentrated in MMR & Pune.
* Long project timelines risk delays and cost overruns.
* Heavy reliance on presales for working capital.
* Heavy leverage.
* Competition.
Below are the key highlights of the company:
From 2021 to 2024, the seven major Indian residential markets— including Mumbai Metropolitan Region, Pune, Bengaluru, Hyderabad, NCR, Chennai, and Kolkata—absorbed around 4.59 lakh units in 2024. Despite total unsold inventory climbing approximately 24 % since 2019 (to about 468,000 units by March 2024), the time to liquidate this stock dropped sharply, from an average of 32 months in 2019 to just 22 months in Q1 2024.
* Between 2019 and 2024, the MMR consistently held the highest share of both supply and absorption—around 31–32 % on average—while Pune accounted for about 17–18 %. This robust performance has been supported by strong policy measures, infrastructure investments, financial accessibility, and a focus on sustainability to ensure development remains affordable and livable.
* Breakdown of the project portfolio as of December 31, 2024:
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SEBI Registration no.: INZ 000160131
