Kalpataru Ltd., a player in the real estate sector, has presented a draft red herring prospectus to SEBI. The company plans to raise up to INR 1,590 crore through an initial public offering (IPO), focusing on using the funds to reduce its debt. The Mumbai-based company, an integrated real estate developer, engages in all facets of property development, including land acquisition, design, execution, and sales. Kalpataru's portfolio includes 25 ongoing projects across 22 million square feet, with a significant focus on luxury and mid-income residential spaces. The company also boasts a substantial land bank of 1,886 acres.
Kalpataru Ltd., a real estate firm, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to initiate its initial public offering (IPO). The company seeks to raise up to INR 1,590 crore, primarily to reduce its debt burden. The IPO will consist of a fresh issue of shares, each carrying a face value of INR 10, with the company planning to allocate INR 1,192.5 crore for the full or partial repayment of specific borrowings.
Kalpataru Ltd. actively engages in every critical aspect of real estate development, from identifying and acquiring land or development rights to planning, designing, executing, marketing, and selling its projects. The company's portfolio includes 25 ongoing projects covering an area of 22 million square feet, with an additional 10 projects in the pipeline and 5 more in the planning stages. Collectively, these developments span nearly 50 million square feet. Among these, 37 projects focus on residential properties, encompassing luxury, premium, and mid-income segments.
Kalpataru Ltd.'s residential offerings include a diverse range of villas, duplexes, apartments, and plots of varying sizes. The company has concentrated over 67% of its residential projects in the Mumbai Metropolitan Region (MMR) and Pune, Maharashtra, with additional ongoing projects in Hyderabad, Telangana, and Noida, Uttar Pradesh. The company also boasts a substantial land bank, comprising 1,886 acres acquired either outright or through development rights. This includes five land reserves located in Surat, Shirol, and Udaipur.
In the fiscal year 2024, Kalpataru Ltd significantly improved its financial performance, reducing losses to INR 100.7 crore, down from INR 200.7 crore in the prior year. However, revenue from operations declined to INR 1,930 crore from INR 3,633 crore during the same period. Kalpataru Ltd. plays a key role within the Kalpataru Group, a conglomerate that Mofatraj P. Munot founded in 1969, building a 55-year legacy of excellence. The Group operates on a multinational scale, with a diverse range of businesses, including EPC contracting for power transmission and distribution, oil and gas, railways, civil infrastructure projects, warehousing and logistics, and facility management.
Kalpataru Projects International Ltd., another major company in the group, trades publicly on both the NSE and BSE. For its IPO, Kalpataru Ltd has enlisted ICICI Securities Ltd, JM Financial Ltd, and Nomura Financial Advisory and Securities (India) Private Ltd as the book-running lead managers. These firms will oversee the process, ensuring a smooth and successful launch of the IPO, which marks a significant step in Kalpataru Ltd's ongoing efforts to strengthen its financial position and expand its influence in the real estate sector.
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