Kalpataru IPO

About Kalpataru IPO

Kalpataru Limited IPO is an IPO aggregating up to ₹1,590 crores. It does not consist of an offer for sale and a fresh issue aggregating up to ₹1,590 crores. The price band of the IPO is between ₹387 and ₹414. The lot size is 36.

The listing of the shares will take place on July 1, 2025. The shares will be allotted on June 27, 2025. The credit of shares to the demat account will take place on June 30, 2025 and the initiation of refunds will take place on June 30, 2025.

Objective of Kalpataru IPO

• Repayment/pre-payment, in full or in part, of certain borrowings availed by the company and its subsidiaries.

• General corporate purposes.

Industry Outlook

According to HDFC's Q4 financial year 2023 report, government policies and rising household incomes have significantly improved affordability to its best level in over two decades. Increased incomes alongside stable housing prices have led to a notable rise in affordability, with the ratio improving from 22 in 1995 to 3.3 in 2023. A lower affordability ratio indicates greater affordability.

Housing finance penetration witnessed improvement in 2020. The trend of housing finance penetration in urban areas suggests that urban areas will likely have a relatively greater share of future growth in housing finance, almost reaching 50% of the total population.

Company Information

Kalpataru Limited is an integrated real estate development company involved in all key activities associated with real estate development, including the identification and acquisition of land (or development rights to it), planning, designing, execution, sales, and marketing of their projects. They are a prominent real estate developer in the Mumbai Metropolitan Region (MMR) in Maharashtra and is present across all micro-markets in the MMR (Source: Anarock Report).

Risks of Kalpataru IPO

The risks and uncertainties the company is subjected to are described below:

• The company has incurred net losses in the past. Any losses in future periods could adversely affect their financial condition, results of operations and cash flows and the trading price of our Equity Shares.

• Their operations are labour intensive, and they may be subject to strikes, work stoppages, increased wage demands or high attrition, which could adversely affect their business, results of operations and financial condition.

• Disruption or fluctuation in supply or prices of key building materials could affect their estimated construction cost and timelines resulting in cost and time overruns, thereby adversely affecting their results of operations and financial condition.

Anchor Investor Information

The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Issue Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers: ICICI Securities Limited JM Financial Limited Nomura Financial Advisory and Securities (India) Private Limited

Registrar for the IPO is Link Intime India Private Limited

Business Model

The company earns its revenue through the following:

• Building and selling a wide range of properties, including villas, duplexes, apartments, and plots of varying sizes, with a primary focus on luxury, premium, and mid-income residential real estate.
• Developing, leasing, and /or selling commercial units.
• Developing, managing, and leasing units within shopping malls.

Company Growth Trajectory

As of March 31, 2024, their ongoing projects comprised approximately 22.02 msf of developable area. Further, as of March 31, 2024, their forthcoming projects comprised approximately 19.93 msf of developable area, and are expected to launch across the financial years 2025, 2026 and 2027 in various phases. Their ongoing projects and the pipeline of forthcoming projects offer a significant competitive advantage to their company. While a majority of their projects are located in the MMR and Pune, Maharashtra, they have two ongoing projects in Hyderabad, Telangana and Noida, Uttar Pradesh; one forthcoming project in Nagpur, Maharashtra; and three pieces of land comprising land reserves in Surat, Gujarat; Nagpur, Maharashtra; and Udaipur, Rajasthan.

Company Market Position

For the calendar years 2019 to 2023, the MMR was ranked first among the top seven Indian markets (MMR (Maharashtra), Pune (Maharashtra), Bengaluru (Karnataka), Hyderabad (Telangana), the National Capital Region, Chennai (Tamil Nadu) and Kolkata (West Bengal)) in terms of supply, absorption and average base selling price (Source: Anarock Report). They are the fifth largest developer in the MCGM area in Maharashtra and the fourth largest developer in Thane, Maharashtra in terms of units supplied from the calendar years 2019 to 2023 (Source: Anarock Report). As of March 31, 2024, the company (together with their promoters) had a total of 113 completed projects aggregating to more than 24.10 msf of developable area within Mumbai, Thane, Panvel and Pune in Maharashtra, and Hyderabad, Indore, Bengaluru, and Jodhpur in the states of Telangana, Madhya Pradesh, Karnataka and Rajasthan, respectively.

How to Apply for Kalpataru IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI