Kalpataru Files DRHP to Raise ₹1,590 Crore in IPO

16 Aug 2024 , 02:30 PM

Mumbai-based real estate developer Kalpataru has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,590 Crore through an initial public offering (IPO).

The IPO will be exclusively a fresh issuance of equity shares valued at ₹1,590 Crore, with no offer-for-sale component. This means the entire proceeds, excluding IPO expenses, will be used by Kalpataru for its own purposes.

The company may also conduct a pre-IPO placement to raise an additional ₹318 Crore before filing the Red Herring Prospectus with the Registrar of Companies (ROC). This pre-IPO placement will reduce the total size of the public offering.

The primary use of the funds raised through the IPO will be to repay ₹1,192.5 Crore in debt. Any remaining funds will be allocated for general corporate purposes.

As of June 2024, Kalpataru had an outstanding total debt of ₹10,747.69 Crore. For fiscal year 2024, the company reported a consolidated net loss of ₹113.8 Crore, an improvement from the ₹226.8 Crore loss reported in the previous year. The consolidated revenue for the fiscal year decreased by 47% to ₹1,930 Crore, compared to ₹3,633.2 Crore in fiscal year 2023.

Kalpataru is part of the Kalpataru Group, established in 1969. The group also includes Kalpataru Projects International, Property Solutions (India), and Shree Shubham Logistics.

In the competitive real estate market, Kalpataru faces competition from prominent developers such as Oberoi Realty, Macrotech Developers, Godrej Properties, Sunteck Realty, Mahindra Lifespace Developers, Keystone Realtors, and Prestige Estates Projects.

The company is managing 40 ongoing, upcoming, and planned projects with a total developable area of 49.77 million square feet. As of March 2024, 67.71% of this developable area is located within the Mumbai Metropolitan Region (MMR), amounting to 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 IPO.