Kalpataru IPO subscribed 30% on Day 2: GMP signals modest premium
ADVERTISEMENT The retail investor portion was subscribed 61%, followed by non-institutional investors (NIIs) at 37%. The qualified institutional buyer (QIB) category was subscribed 17%, while the employee quota saw a 31% subscription.
In the grey market, Kalpataru shares are quoting a premium of Rs 8–9, indicating a potential 2% gain over the upper end of the issue price band.
Also Read: These 10 multibagger penny stocks surged 200-570% in last 1 year. Do you own any?The IPO, priced between Rs 387 and Rs 414 per share, comprises a 100% fresh issue of 3.84 crore shares. Bidding will close on June 26, and the shares are expected to list on July 1. The company plans to utilise proceeds primarily to repay borrowings of itself and its subsidiaries, amounting to Rs 1,193 crore. Post-listing, promoter shareholding will decline from 100% to 81.3%.Founded in 1988, Kalpataru has developed over 25.9 million sq. ft. across Mumbai, Thane, Pune, Hyderabad, and other cities. It operates under the Kalpataru Group, known for its infrastructure and EPC expertise. Kalpataru focuses predominantly on high-end and luxury residential projects and holds land reserves of over 1,886 acres across Maharashtra, Gujarat, and Rajasthan.
ADVERTISEMENT As of December 2024, it had 25 ongoing, six forthcoming, and five planned projects spanning 49 million sq. ft., with 95% of its portfolio concentrated in MMR and Pune. The company is also expanding through joint ventures and redevelopment in land-scarce MMR zones.
Also Read: Coforge among 10 high-conviction stock ideas that can rally up to 52%Despite a strong project pipeline and brand value, the company reported low profitability—posting a PAT margin of just 0.3% and an ROE of 0.4% in 9MFY25. Adjusted EBITDA margin stood at 31.8%, but reported EBITDA was just 5%. Analysts cite high capitalized interest and a change in revenue recognition policy for the tepid profitability.
ADVERTISEMENT At the upper band, the IPO values Kalpataru at 186.3x EV/EBITDA (FY25), significantly above sector averages. SBI Securities and KR Choksey have both assigned a 'NEUTRAL' rating to the IPO, citing high debt, valuation concerns, and need for sustained pre-sales traction post-listing to justify premium.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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