Real estate developer Kalpataru files draft papers with SEBI to raise Rs 1,590 crore via IPO

Kalpataru IPO

Mumbai-based real estate developer Kalpataru has filed a draft red herring prospectus (DRHP) with the capital markets regulator SEBI to raise Rs 1,590 crore via an initial public offering.

The IPO comprises solely a fresh issuance of equity shares worth Rs 1,590 crore with no offer-for-sale component. Hence, the entire issue proceeds (excluding IPO expenses) will be utilised by the company for itself.

Furthermore, the company may raise Rs 318 crore in a pre-IPO placement, before filing the Red Herring Prospectus with the ROC. After the said pre-IPO placement, the issue size will be reduced from the issue.

The repayment of Rs 1,192.5 crore debt is the main objective of the public issue. The remaining fresh issue money will be used for general corporate purposes.

The Mofatraj P Munot and Parag M Munot-promoted company had a total debt of Rs 10,747.69 crore as of June 2024.

It is a part of the Kalpataru Group established in 1969. Kalpataru Projects International, Property Solutions (India), and Shree Shubham Logistics are other companies in the group.

However, Kalpataru posted a consolidated net loss of Rs 113.8 crore for the fiscal 2024, narrowing from the loss of Rs 226.8 crore in the previous year, while there was volatility in the topline. Consolidated revenue for the year gone by fell 47 percent to Rs 1,930 crore, compared to Rs 3,633.2 crore in the previous fiscal 2023.

Kalpataru competes with Oberoi Realty, Macrotech Developers, Godrej Properties, Sunteck Realty, Mahindra Lifespace Developers, Keystone Realtors and Prestige Estates Projects, has 40 ongoing, forthcoming and planned projects with a developable area of 49.77 million square feet. "As of March 2024, 67.71 percent of the developable area of the residential projects within the development portfolio were located within the MMR (Mumbai Metropolitan Region), aggregating to 33.69 million square feet of developable area, as per the draft papers with the regulator on August 14.

ICICI Securities, JM Financial, and Nomura Financial Advisory and Securities (India) are acting as the book-running lead managers on the issue.