Kalpataru IPO Day 2 update: Check subscription status, GMP, listing date

Kalpataru IPO subscription status Day 2: The mainline IPO has been subscribed only 20 per cent, according to NSE data

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Kalpataru IPO subscription status Day 2: The initial public offering (IPO) of Kalpataru, which opened for public subscription on Tuesday, June 24, has received lacklustre response from the investors so far. The mainline IPO has been subscribed only 20 per cent, according to NSE data as of 1 PM on Wednesday, June 25, the second day of bidding. 

 

Retail investors subscribed to 56 per cent of the issue size reserved for them followed by employees quota at 28 per cent and non-institutional investors (NIIs) at 34 per cent. However, the issue failed to secure any bids from the qualified institutional buyers (QIBs). 

 

Ahead of the IPO, the company raised ₹708 crore from nine anchor investors at the upper price band of ₹414 per equity share. 

Kalpataru IPO grey market premium (GMP)

According to sources tracking unofficial market activities, the unlisted shares of Kalpataru were trading at ₹423 per share, commanding a grey market premium (GMP) of ₹9 or 2.17 per cent over the upper band price of ₹414.   Check Safe Enterprises IPO Allotment Status

Kalpataru IPO review

According to analysts at Choice Broking, at the upper price band, Kalpataru is seeking an EV/Sales multiple of 9.3x, which still trades at a discount compared to the peer average of around 12.5x. 

 

"The company’s strong brand allows it to command a premium pricing strategy, reflecting solid pricing power. However, a

high debt load introduces financial prudence concerns. Thus, we recommend a “Subscribe for long term” rating for this issue," the brokerage said in its IPO note. READ MORE

Kalpataru IPO details

Kalpataru aims to raise ₹1,590 crore through a fresh issue of 38.4 million equity shares. There is no offer for sale (OFS) component. The company has set the price band in the range of ₹387-414 per share, and a lot size of 36 shares. A retail investor would require a minimum of ₹14,904 to bid for one lot, taking the upper end of the IPO price into consideration. A retail investor can bid for a maximum of 13 lots or 468 shares, amounting to ₹1,92,096.

 

According to the red herring prospectus (RHP), from the net issue proceeds, the company plans to use ₹1,192.5 crore for repayment or pre-payment, in full or in part, of certain borrowings availed by itself and its subsidiaries. The remaining funds will be used for general corporate purposes. 

 

MUFG Intime India, formerly Link Intime is the registrar for the issue. ICICI Securities, JM Financial, and Nomura Financial Advisory & Securities (India) are the book running lead managers. 

About Kalpataru 

Kalpataru is an integrated real estate development company involved in all key activities associated with real estate development, including the identification and acquisition of land, planning, designing, execution, sales, and marketing projects. It is a prominent real estate developer in the Mumbai Metropolitan Region (MMR) in Maharashtra and is present across all micro-markets in the MMR.  As of December 31, 2024, Kalpataru (together with its Promoters) had a total of 120 completed projects aggregating to more than 25.87 million square feet of developable area within Mumbai, Thane, Panvel and Pune in Maharashtra, and Hyderabad, Indore, Bengaluru, and Jodhpur in the states of Telangana, Madhya Pradesh, Karnataka and Rajasthan, respectively.