Kalpataru IPO Set To List On July 1, Investors Hope For Stable Debut Despite Flat GMP

Mumbai: The Rs 1,590 crore IPO of Kalpataru Ltd opened on June 24 and closed on June 26. The share allotment process is in the final stage. The shares will be listed on July 1 on BSE and NSE. Investors are eagerly waiting to see how the stock performs on listing day.

Price Band and GMP Trends

The IPO was priced between Rs 387 and Rs 414 per share.

However, as of now, the Grey Market Premium (GMP) is Rs 0, suggesting that the stock may list at its issue price of Rs 414, indicating a flat listing.

Earlier, the GMP was as high as Rs 11, but dropped to Rs 3 by the IPO’s closing day, and has now fallen to zero. GMP can change quickly and is not an official indicator.

IPO Subscription Details

The IPO was 2.31 times subscribed overall:

Retail investors: 1.43 times

Non-Institutional Investors (NII): 1.40 times

Qualified Institutional Buyers (QIBs): 3.12 times

Use of IPO Funds

Kalpataru Projects International Ltd plans to use the IPO funds to:

- Repay or prepay certain loans of the company and its subsidiaries.

- Fund general corporate purposes.

Brokerage Ratings

Both SBI Securities and KR Choksey gave a ‘Neutral’ rating, citing:

- High valuation

- Debt levels

- Strong pre-sales as key future factors

About Kalpataru Ltd

Founded in 1988, Kalpataru has developed over 25.9 million sq. ft. in cities like Mumbai, Thane, Pune, and Hyderabad.

The company is part of the Kalpataru Group, known for infrastructure and EPC projects.

Most of its projects are in the high-end residential segment.

It owns 1,886 acres of land across Maharashtra, Gujarat, and Rajasthan.

As of December 2024, it had:

25 ongoing projects

6 upcoming projects

5 planned projects

Covering a total of 49 million sq. ft., with 95 percent in MMR and Pune.

(Disclaimer: The recommendations, suggestions, views, and opinions provided by experts are their own. They do not represent the views of The Free Press Journal.)