Kalpataru Files for Rs 1590 Crore IPO - Key Details and Strategic Plans

Kalpataru's IPO Plans: A Major Fundraising Move

Mumbai:

based real estate developer Kalpataru has taken a significant step by filing a draft red herring prospectus (DRHP) with SEBI to raise Rs 1,590 crore through an initial public offering (IPO). The IPO consists solely of a fresh issuance of equity shares, with no offer-for-sale component, ensuring that all proceeds (excluding IPO expenses) will directly benefit the company.

Strategic Use of Funds: Debt Repayment and Corporate Growth

A substantial portion of the IPO proceeds, Rs 1,192.5 crore, is earmarked for debt repayment, addressing the company’s financial obligations. The remaining funds will be allocated for general corporate purposes, supporting Kalpataru's overall growth and operational needs.

Pre-IPO Placement: Potential for Additional Fundraising

Kalpataru also plans to raise an additional Rs 318 crore through a pre-IPO placement, which, if successful, will reduce the size of the subsequent public issue. This move highlights the company’s strategic approach to securing capital ahead of the IPO.

Financial Performance and Market Position

Despite facing financial challenges, Kalpataru has narrowed its consolidated net loss to Rs 113.8 crore in fiscal 2024, down from Rs 226.8 crore in the previous year. However, the company’s revenue experienced a sharp decline of 47%, falling to Rs 1,930 crore in FY 2024 from Rs 3,633.2 crore in FY 2023. Kalpataru's market presence remains strong, with 40 ongoing, forthcoming, and planned projects encompassing a developable area of 49.77 million square feet. Notably, 67.71% of this area is located within the Mumbai Metropolitan Region (MMR), amounting to 33.69 million square feet.

Competing in a Crowded Market

Kalpataru operates in a competitive landscape, contending with major players like Oberoi Realty, Macrotech Developers, Godrej Properties, Sunteck Realty, Mahindra Lifespace Developers, Keystone Realtors, and Prestige Estates Projects. The company’s strategic focus on MMR reflects its intent to strengthen its market position in one of India’s most lucrative real estate regions.