Kalpataru Projects to raise Rs 1,000 crore through a QIP, issue price at Rs 1,201 per share

The management intends to use the funds raised for repayment of outstanding dues and for general corporate purposes.

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26 Aug, 2025 12:21

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Kalpataru Projects will be raising funds through a QIP at a floor price of Rs 1,214.98 per share, the company said on December 12.

CNBC-TV18 cited sources to report that up to Rs 1,000 crore is being raised with an issue price of Rs 1,201 per share. The indicative price of the share place is at a 6.4% discount to the closing price and 1.15% lower than the floor price.

The board approval for a fund raise of up to Rs 1,000 crore was already in place, which the management says is expected to improve the liquidity position for the company and help in capex for expansion.

Investors to the QIP will have a lock-in period of 30 days. Shares of Kalpataru Projects were lower by 2.4% on December 12 but on a YTD basis, the shares are higher by 78%.

The management intends to use the funds raised for repayment of outstanding dues and for general corporate purposes. "The primary reason for the QIP would be utilizing it for working
capital for the growth, which is visible now," the management had recent said. Kalpataru Projects said the last QIP the company did was in 2010, since then, it has grown more than 15x through internal cash flows. In the past three years, Kalpataru Projects has done Rs 1,500 crore of capex out of free cash flow.

"The market has been like this for the last 12 to 18 months. So it's not driven by externally the market sentiments," said Kalpataru on the fund raise. The management also believes it has an opportunity of an acquisition in the manufacturing space.

The management is upbeat on growth and margins in Q3 and Q4FY25, and says it has strong visibility on projects and its diversified portfolio its expected to drive performance.