Kalpataru IPO subscribed 35% on Day 2, retail portion booked 72%: Check latest GMP

Kalpataru IPO Day 2

The Rs 1,590-crore IPO of real estate developer Kalpataru was subscribed 35 percent on its second day of public bidding (June 25).

The initial public offering of the five-decade old company received bids for nearly 79.6 lakh shares, as against the offer size of 2.28 crore shares, according to data on NSE.

Retail investors led the subscription statistics by booking 72 percent of their reserved portion so far. Non institutional investors (NII) followed, subscribing 45 percent of their reserved portion. Qualified institutional buyers (QIBs) booked 17 percent of the portion kept for them.

Key things to know about Kalpataru IPO:

The maiden issue of Kalpataru will remain open for public bidding from June 24 to June 26. The company aims to raise up to Rs 1,590 crore through an IPO which entirely comprises a fresh issue of shares at a price band of Rs 387-414 apiece.

Investors can apply for a minimum of 36 equity shares, requiring an investment of Rs 14,904, and in multiples thereafter. The shares are likely to be listed on July 1.

Kalpataru IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of over 2 percent over the IPO price at Rs 423 apiece, according to Investorgain.

According to IPO Watch, the shares were trading with a 2 percent GMP over IPO price.

Should you apply?

The analysts at Bajaj Broking recommended to subscribe the IPO with a long-term perspective. "The strength of Kalpataru is driven by its track record of delivering quality projects. It has a customer-centric approach and seek to address customers’ requirements and preferences, which in turn enhances its brand recognition. The “Kalpataru” brand name is used by it pursuant to an intellectual property license agreement dated July 1, 2022 with Kalpataru Business Solutions Private Limited, one of our Group Companies," the analysts said in a note.

Gaurav Garg, Lemonn Markets Desk, noted "Kalpataru Limited’s IPO presents a high-conviction bet on brand strength in Mumbai real estate, supported by a sizable project pipeline and significant land bank. The company's green development credentials and operational focus add merit to its long-term positioning. However, the success of this offering will rest on the company’s ability to deliver profitable growth, reduce leverage, and compete effectively against better-capitalized peers. Risk-averse investors may await more consistent earnings visibility post-listing, while aggressive investors looking for turnaround stories with strong asset backing may find this IPO compelling."

Also read: Kalpataru bets on premium segment to drive sales in a plateauing market

The group has a multi-national presence and has operations in EPC contracting for power transmission and distribution, oil and gas, railways, civil infrastructure projects, warehousing and logistics, and facility management.

Earlier, the company raised Rs 708 crore from anchor investors a day ahead of the launch of its initial public offering (IPO) for public subscription. It proposes to utilise funds for the payment of debt and general corporate purposes.

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