Kalpataru IPO Day 1 Live: Here's GMP, subscription status to review. Apply or not?

Mint

2 days ago

The initial public offering (IPO) of Kalpatru has opened for subscription on Tuesday, June 24. The mainboard segment IPO will close on Thursday, June 26. The price band for the issue has been set between ₹ 387 and ₹ 414 per equity share, each having a face value of ₹ 10. The issue consists of equity shares amounting to ₹ 1,590 crore, with no Offer for Sale (OFS) component included.
Kalpatru intends to use the net proceeds from the issuance for multiple purposes, including the full or partial repayment or prepayment of specific loans availed by itself and its subsidiaries, as well as for general corporate purposes.
The company has reserved 75 per cent of the shares in its public offering for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and the remaining 10 per cent for retail investors. Qualified employees applying under the employee reservation category are eligible for a discount of ₹ 38 per equity share.
Subscription for the public issue will open at 10:00 IST during Tuesday's deals.
Brokerage firm Choice Broking has given 'subscribe for long-term' rating to Kalpataru IPO. ' At the higher price range, Kalpataru is seeking an EV/Sales multiple of 9.3×, which still trades at a discount compared to peer averages of around 12.5×. The company's strong brand allows it to command a premium pricing strategy, reflecting solid pricing power. However, a high debt load introduces financial prudence concerns. Thus, we recommend a 'Subscribe for long Term' rating for this issue.'
Whereas, Gaurav Goel, Founder & Director at Fynocrat Technologies believes that given Kalpataru's current financial profile and limited visibility on sustained profitability, the IPO does not offer a compelling risk-reward trade-off.
' Kalpataru Ltd. is a well-known brand in the Mumbai Metropolitan Region with a sizeable land bank and an active project pipeline. However, it significantly lags behind peers on key metrics like Return on Equity (0.56%), and remains heavily concentrated in one region, limiting its diversification benefits. The company also carries a high debt load, which adds financial risk in a capital-intensive sector. In contrast, listed peers like Oberoi Realty and Godrej Properties offer stronger execution track records, better geographic spread, and healthier return ratios,' Goel said.
Kalpataru's IPO is a book-built offering valued at ₹ 1,590 crores, consisting entirely of a fresh issuance of 3.84 crore equity shares. The price band for Kalpataru Limited's IPO has been set between ₹ 387 and ₹ 414 per equity share, each having a face value of ₹ 10.
The basis of allotment for the Kalpataru IPO is expected to be finalized on Friday, June 27. Refunds to unsuccessful applicants will likely begin on Monday, June 30, with shares being credited to the demat accounts of successful allottees the same day. Kalpataru shares are anticipated to be listed on the BSE and NSE on Tuesday, July 1.
ICICI Securities Limited, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are acting as the book running lead managers for the Kalpataru IPO, while MUFG Intime India Private Limited (Link Intime) is appointed as the registrar for the offering.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.