Kalpataru IPO: High Stakes, High Valuation – Is It Worth the Risk?

Kalpataru Ltd’s ₹1,590 Cr IPO opens June 24 with strong real estate presence but weak financials and sky-high valuation. Should investors bite or wait?

June 23, 2025: Kalpataru Limited, a prominent name in Indian real estate, is set to launch its Initial Public Offering (IPO) on June 24, 2025, aiming to raise ₹1,590 crore through a fresh issue of equity shares. With a price band of ₹387 to ₹414 per share and a tentative listing on July 1, the IPO has drawn attention for both its brand power and its financial red flags.

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🏢 About Kalpataru Limited

Founded in 1988 and based in Mumbai, Kalpataru is a major player in residential, commercial, retail, and township projects. The company has completed 70 projects and has 40 more in progress across urban hubs like Mumbai, Pune, Hyderabad, Bengaluru, Indore, Thane, and Jodhpur.

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Kalpataru Limited is part of the larger Kalpataru Group, which includes Kalpataru Projects International Ltd and Shree Shubham Logistics Ltd.

📅 Kalpataru IPO Details

Particulars	Details
IPO Dates	June 24 – June 26, 2025
Price Band	₹387 – ₹414 per share
Lot Size	36 shares
Minimum Investment (Retail)	₹13,932 (₹14,904 at cutoff)
Total Issue Size	₹1,590 Crores (Fresh Issue)
Listing Platform	BSE, NSE
Tentative Listing Date	July 1, 2025
Lead Managers	ICICI Securities, JM Financial, Nomura
Registrar	MUFG Intime India Pvt Ltd

🎯 IPO Objectives

₹1,192.5 Cr: Repayment/pre-payment of certain borrowings
Remaining funds: General corporate purposes

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💰 Financial Snapshot (Consolidated)

Metric	FY22	FY23	FY24	9MFY24
Revenue (₹ Cr)	1,248.55	3,716.61	2,029.94	1,699.49
Net Profit (₹ Cr)	-125.36	-229.43	-116.51	5.51
EBITDA (₹ Cr)	-35.98	-49.67	-78.01	101.67
Borrowings (₹ Cr)	10,365.97	9,679.64	10,688.31	11,056.40
Net Worth (₹ Cr)	1,429.01	1,221.89	1,028.23	1,579.54

📈 Key Valuation Metrics

Market Cap (Post-issue): ₹8,524.07 Crores
Post-Issue EPS: ₹0.36
Post-Issue P/E Ratio: 1,160x
Return on Net Worth: -10.15%
Price to Book: 5.62x

👍 Reasons to Consider Investing

Return to positive profitability in the latest quarter
Strong brand with a wide pan-India footprint
Real estate tailwinds in top-tier cities
Respected parent group and experienced leadership

⚠️ Risks to Watch

High debt burden of over ₹11,000 Cr
Weak track record: Losses in FY22 and FY23
Steep valuation: P/E over 1,100x
Cyclical industry tied to interest rates, regulation, and economic sentiment
Low RoNW and thin earnings at present

🧾 Kalpataru IPO GMP & Investor Sentiment

As of June 20, 2025, the Grey Market Premium (GMP) hovers around ₹35–₹40, suggesting lukewarm enthusiasm. Listing gains appear moderate unless subscription demand surges close to the closing date.

🧠 Should You Subscribe to Kalpataru IPO?

While Kalpataru’s strong brand and sector presence are undeniable, the IPO’s lofty valuation, high debt, and inconsistent profitability make it a high-risk investment. Short-term gains are uncertain, and long-term bets should be placed only if financial stability becomes more visible.

📝 FAQs

IPO Dates: June 24 – 26, 2025
Price Band: ₹387 – ₹414
IPO Size: ₹1,590 Cr (Fresh Issue)
GMP Today: ₹35 – ₹40
Lot Size: 36 shares (min investment ₹13,932–₹14,904)
Listing Date: Tentatively July 1, 2025

🏷️ Tags:

Kalpataru IPO, Real Estate IPO 2025, Upcoming IPOs India, IPO Review, NSE BSE Listings, High Valuation IPOs, Debt Heavy IPOs, Investment Advice, Kalpataru Projects

News Desk