Kalpataru Plans ₹1,590 Crore IPO to Repay Debt and Support Growth

Real estate developer Kalpataru has announced plans to raise up to ₹1,590 crore through an initial public offering (IPO). The funds will primarily be used to repay existing loans, with the remainder allocated for general corporate purposes. This IPO will be a fresh issue of shares.

The Mumbai-based company has a robust portfolio, having completed 70 projects across major cities such as Mumbai, Pune, Thane, Hyderabad, and Bengaluru, covering over 15 million square feet. Currently, Kalpataru is working on 25 ongoing projects totaling 22 million square feet, with an additional 10 projects in the pipeline and 5 planned, which will expand their total development area to nearly 50 million square feet. Of these projects, 37 are residential.

Kalpataru focuses on luxury, premium, and mid-income residential, commercial, and retail developments, including integrated townships, lifestyle gated communities, and redevelopment projects. Its residential offerings include villas, duplexes, apartments, and plots of various sizes.

As of March 31, 2024, over 67% of its residential project area was located in the Mumbai Metropolitan Region. The company also holds a substantial land bank of 1,886 acres, acquired through outright purchases or development rights, with land reserves in Surat, Shirol, and Udaipur.

In FY24, Kalpataru reduced its loss to ₹100.7 crore from ₹200.7 crore the previous year, despite a decline in revenue from operations to ₹1,930 crore, down from ₹3,633 crore. The IPO funds will be used to address ₹1,192.5 crore of the company’s debt, part of its total ₹7,060 crore obligations to banks and financial institutions.

The main promoters of Kalpataru are Mofatraj Munot and Parag Munot, who collectively hold a 35% stake in the company.