Kalpataru Ltd. Targets Debt Reduction with Rs 1,590 Crore IPO

The real estate developer Kalpataru Ltd. of Mumbai will enter the capital market on June 24, 2025, with a proposed 1,590-crore initial public offering (IPO) of equity-shares of the face value of 10 each to strengthen its financial future by paying off its hefty debt. It is a new issue of 3.84 crore equity shares at a price of between 387 and 414 per shirt (IPO, which closes on June 26).

The minimum lot size is 36 shares. Bidding by anchor investors will commence on June 23 and the shares could be listed at BSE and NSE by July 1. The valuation at the upper price range of the company was at 8,500 crore.

• Kalpataru Ltd. Launches ₹1,590 Cr IPO to Slash Debt, Boost Growth Plans
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• Realty Firm Kalpataru Eyes Stronger Balance Sheet with Mega IPO Debut

Kalpataru will use the IPO proceeds of 1192.5 crore to repay or pre-pay the borrowings, and the rest to be used in general corporate purposes. At April 2025, the total debt of the company was 10186.6 crore, net debt of 10120.52 crore in December 2024. By the use of the funds proceeded through IPO and its current cash, as well as expected future cash in terms of property sales, the firm targets to reduce debt-to-equity ratio in terms of 3.7 x to below 2x. In the year 2022, land parcels were sold by Kalpataru in Thane and Pune contributing 2,002.6 crores and between FY23 to FY24 its promoters stepped in and injected 1440 crores in form of convertible debentures.

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The sales figures were high with the company recording; 2727.24 crore of sales of property between April 2024 and the end of December 2024, as against the sales of 3201.98 crores during the entire fiscal 2023-24. Net profit During the November 2022-January 2023 fiscal, Kalpataru has reported a 5.51 crore profit (after being in the red by 116.5 crore in the previous year, that is FY24). Its periodical revenue amounts were 1,699 crore. Having a portfolio of 50 million square feet, of which 25 million square feet are under construction, Kalpataru specializes in residential, commercial as well as township projects, mainly in Mumbai Metropolitan Region (MMR) and Pune.

Led by Managing Director Parag M. Munot, Kalpataru remains optimistic about India’s real estate demand, particularly in the ₹1 crore to ₹10 crore housing segment. Despite risks like geographic concentration, the company’s strategic focus on deleveraging and asset-light projects positions it for growth.