Kalpataru Limited IPO

Company Overview

Established in 1988, Kalpataru Limited is part of the broader Kalpataru Group, which operates across sectors such as EPC contracting, power transmission and distribution, civil infrastructure, and logistics. Kalpataru’s real estate portfolio includes residential and commercial developments, integrated townships, and retail spaces. The company has a strong footprint in the Mumbai Metropolitan Region (MMR), Pune, and other cities such as Hyderabad, Indore, Bengaluru, and Jodhpur.

IPO Objective:

1. Repayment of borrowings by the company and subsidiaries

2. General corporate purposes Strengths

1. Strong Presence: Ranks 5th in MCGM and 4th in Thane for units supplied (2019–2023).

2. Diversified Micro-Market Focus: Helps reduce dependence on any single region.

3. Integrated Business Model: End-to-end control over real estate projects.

4. Experienced Leadership: Senior management with 20+ years of industry experience.

5. Group Synergy: Backed by the Kalpataru Group with diversified infrastructure expertise. Risks to Consider

1. Negative Profitability Metrics: Negative Return on Net Worth (-10.15%) and EBITDA margin (-4.04%) indicate operational inefficiencies and sustained losses.

2. High Valuation Concerns:

a) Post-IPO P/E of 1160x (based on ₹0.36 EPS) is unjustifiable when compared with industry averages (generally 30–50x for real estate).

b) Price to Book Value of 5.62x is also on the higher end, despite weak financials.

3. Macroeconomic Exposure: Regulatory shifts, rising interest rates, or political instability can heavily impact demand and execution.

4. Land Acquisition Bottlenecks: Two planned projects still lack complete land ownership, delaying potential revenue streams.

5. Project Delays: Long gestation periods and execution risks are inherent in real estate, affecting cash flow.

6. Dependence on Debt: A significant portion of the IPO proceeds is earmarked for debt repayment, indicating existing leverage stress.

Kalpataru Limited IPO

• IPO Dates: 24 to 26 Jun 2025

• Price Band: ₹387 to ₹414 per share

• Lot Size: 36 Shares

• Total Issue Size: ₹1,590.00 Cr

• Retail Quota: 10%

• GMP: Nil (for reference only)
  

Allotment Link

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