At a Glance:
Kalpataru’s ₹1,590 Cr IPO opens from June 24–26, 2025, priced at ₹387–₹414. The company’s financials scream “Under Construction,” but the land bank, turnaround hopes, and Mumbai brand power could lay solid groundwork. Fair value sits in the ₹350–₹500 range — but you might need builder-level patience to see it materialize.
1️⃣ TL;DR – 10 Things You Should Know Before Bidding 🧾
- 📅 IPO Window: June 24–26, 2025
- 🏗️ Issue Size: ₹1,590 Cr (fresh issue only)
- 📍 Price Band: ₹387–₹414 (Retail: ₹14,904 for 1 lot of 36 shares)
- 🏦 Use of Funds: ₹1,192.5 Cr for debt repayment, rest for GCP
- 📉 PAT (FY22-24): Negative every year — finally turned ₹5.5 Cr profit in 9M FY25
- 🧾 NAV-based FV: ₹350–₹500 range (P/BV 2.0–3.0x)
- ⚖️ Leverage: ~₹11,000 Cr debt; dilution will ease gearing
- 🧱 Projects: 40 ongoing + 5 upcoming across MMR, Pune, Hyd, Indore, Jodhpur
- 👷♂️ Kalpataru Group: Parent has infra arms (EPC, logistics, warehousing)
- 🐢 Verdict: Looks like a slow compounding realty play — not a 2x listing rocket
2️⃣ IPO Details 📊
| Detail | Info |
|---|---|
| Issue Size | ₹1,590 Cr (3.84 Cr shares) |
| Price Band | ₹387–₹414 |
| Lot Size | 36 shares (₹14,904 min) |
| Listing | BSE & NSE (July 1, 2025 tentative) |
| Anchor Book | ₹708.35 Cr (1.71 Cr shares) |
| Promoter Stake | Falls from 100% → 81.3% post-issue |
| Face Value | ₹10 |
| QIB / NII / Retail Split | 75% / 15% / 10% |
| Employee Discount | ₹38 per share (worth ~₹15.9 Cr) |
3️⃣ Business Model – “Builder by Day, Balancer Sheet Warrior by Night” 🏘️
Kalpataru Limited is the real estate arm of the Kalpataru Group, with roots going back to 1988. It focuses on:
- 🏠 Luxury & Premium Residential Projects
- 🏢 Commercial Leasing/Sale
- 🛍️ Retail Developments in Malls
- 🏙️ Integrated Townships + Gated Communities
- 🤝 Redevelopment & Joint Development Agreements (JDA/JV)
“Mannat nahi, Kalpataru hai” — if Bollywood had an alternative to Shah Rukh Khan’s house, this would be it.
Project Footprint:
- Ongoing Projects: 40
- Completed Projects: 70
- Developable Area: Over 25.87 million sq. ft.
- Land Reserves: 1,886 acres (some prime, some future chai tapri)
4️⃣ Financials – “Negative Profits but Positive Vibes” 🧮
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) | Net Worth (₹ Cr) | Total Debt (₹ Cr) |
|---|---|---|---|---|---|
| FY22 | 1,248.6 | –125.4 | –36.0 | 1,429.0 | 10,365.9 |
| FY23 | 3,716.6 | –229.4 | –49.7 | 1,221.9 | 9,679.6 |
| FY24 | 2,029.9 | –116.5 | –78.0 | 1,028.2 | 10,688.3 |
| 9M FY25 | 1,699.5 | 5.5 | 101.7 | 1,579.5 | 11,056.4 |
- 🧠 FY23 revenue spike = land sale = not repeatable
- 🚧 PAT finally turns positive in FY25 after years of financial “redevelopment”
- 📉 ROE? ROCE? Let’s just say the excel sheet had to scroll left to find them
5️⃣ Valuation – What’s the Fair Value? 🔍
Let’s break it down:
- Post-IPO Net Worth: ₹1,829.5 Cr (1,579.5 + ₹250 Cr from IPO after debt use)
- Post-IPO Equity Shares: 20.59 Cr
- NAV/Share: ₹1,829.5 Cr ÷ 20.59 Cr = ₹88.85
But RHP gives post-issue NAV as ₹177.97 – likely adjusted for project value and land revaluations.
Using NAV-based multiples:
| Multiple | Value (₹) |
|---|---|
| 2.0x NAV | ₹356 |
| 2.5x NAV | ₹445 |
| 3.0x NAV | ₹534 |
🎯 EduInvesting Fair Value Range: ₹350–₹500
- IPO upper band = ₹414 → Reasonable if FY26 profit holds up
- P/E looks insane (1,160x) because EPS is barely ₹0.36
- Better to look at P/B (5.6x pre, 2.33x post) for this asset-heavy biz
6️⃣ Should You Apply? Let’s “Plot” This 🗺️
✅ Why You Might Apply:
- Trusted brand in Mumbai real estate (Kalpataru = Lodha lite?)
- Promoter buying shares in pre-IPO at ₹517 = bullish signal
- Debt repayment could clean up cash flows
- Strong pipeline of 40+ projects and 1,800+ acres land
- Anchors have put ₹708 Cr where their mouth is
❌ Why You Might Skip:
- PAT history is uglier than a builder’s carpet area math
- 11K Cr debt is no joke — IPO is just one EMIs worth
- Real estate is cyclical + approval-heavy
- Aggressive pricing vs financial health
- High execution and cost overrun risk
7️⃣ EduInvesting Take – “Apply if You Like Builders Who Build Slowly” 🧱
Kalpataru’s IPO isn’t your next Nykaa or MapMyIndia. It’s not aiming to pop 50% on Day 1.
It’s a debt-heavy, asset-rich, income-light slow compounder with upside… if executed well.
It may take:
- 🏗️ 3–5 years for major projects to reflect in PAT
- 🧾 1–2 years just to reduce debt ratios to <2x
- 💰 Patience — and hopefully not builder-level delays
Verdict:
- Short-term: Tread carefully, don’t over-allocate
- Long-term: If you believe in Mumbai real estate + turnaround stories, this could be your “foundation stock”
📊 Final Rating: 6.5/10
Not a scam, but definitely not a slam dunk. Valuation is on the upper edge of comfort, but brand + land + builder DNA adds hope. If you’re the type who’s cool holding cement stocks for 10 years, this might fit your watchlist.
Tags: Kalpataru IPO, Real estate IPO 2025, Mumbai builders, NAV valuation, IPO subscription guide, ICICI IPO review, Kalpataru Group, realty IPOs India, EduInvesting
✍️ Written by Prashant | 📅 June 23, 2025
