Real estate developer Kalpataru to raise Rs 1,590 crore via IPO, files draft papers with SEBI Mumbai-based real estate developer Kalpataru has filed a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in a bid to raise ₹1,590 crore through an Initial Public Offering (IPO).
The IPO will have entirely a fresh issuance of equity shares worth ₹1,590 crore, with no offer-for-sale component. Hence, the entire proceeds from the issue, excluding IPO-related expenses, will be utilized by the company. Additionally, the company may raise Rs 318 crore in a pre-IPO placement, before filing the Red Herring Prospectus with the ROC. Should this pre-IPO placement occur, the size of the public issue will be adjusted accordingly.
The primary objective of the IPO is to repay ₹1,192.5 crore of the company’s debt, with the remaining funds earmarked for general corporate purposes. As of June 2024, Kalpataru, promoted by Mofatraj P. Munot and Parag M. Munot, reported a total debt of ₹10,747.69 crore. Kalpataru is part of the Kalpataru Group, established in 1969, which also includes Kalpataru Projects International, Property Solutions (India), and Shree Shubham Logistics.
Despite challenges in the market, the company managed to reduce its consolidated net loss to ₹113.8 crore for the fiscal year 2024, compared to a loss of ₹226.8 crore in the previous fiscal year. However, consolidated revenue declined by 47% to ₹1,930 crore, down from ₹3,633.2 crore in FY 2023. Kalpataru has major competition with Oberoi Realty, Macrotech Developers, Godrej Properties, Sunteck Realty, Mahindra Lifespace Developers, Keystone Realtors, and Prestige Estates Projects, currently has 40 ongoing, forthcoming, and planned projects with a developable area of 49.77 million square feet.
According to the draft papers submitted to SEBI on August 14, as of March 2024, 67.71% of the developable area for residential projects in its development portfolio is located within the Mumbai Metropolitan Region (MMR), totaling 33.69 million square feet. ICICI Securities, JM Financial, and Nomura Financial Advisory and Securities (India) are serving as the book-running lead managers for the issue.