Home / Companies / News /  Kalpataru plans to file draft papers for IPO next quarter

City-based real estate developer Kalpataru Ltd may file draft papers for a 2,000 crore initial public offering (IPO) in the first quarter of next fiscal, two people aware of the plans said.

The offer will largely comprise a fresh issue of shares, besides an offer for sale of 250 crore, the people cited above said on the condition of anonymity, adding the net proceeds will be used mainly for the company’s expansion plans.

“As far as the company’s strengths are concerned, promoters have a good track record and brand name. Kalpataru has the ability to identify and acquire suitable land parcels for development while also having a strong portfolio on ongoing projects in the Mumbai Metropolitan Region", said one of the persons cited above.

The company has hired Axis Capital, Nomura, ICICI Securities, JM Financial and SBI Capital Markets to be book running lead managers to the issue, the people added.

An email query sent to the company remained unanswered.

Founded in 1969, Kalpataru developes residential, commercial, retails, townships, lifestyle gated communities and redevelopment projects. It also caters to real estate development, property and project management and construction (EPC) contracting for power transmission and infrastructure projects including road projects warehousing and logistics.

According to its website, the real estate firm has projects in Mumbai, Pune, Hyderabad, Indore, Noida and Dubai. Some of the projects include Kalpataru Park Riveria, Vista, Vienta, Magnus, Serenity, Elitus, Parkcity, Namaah and Eternia. Its commercial spaces include Kalpataru Infinia, Summit and Avenue.

According to Prime Database, a research database firm, nearly 57 companies have received the market regulator’s approval for IPOs worth more than 85,754 crore, while nearly 55, 620 crore worth of public offers are yet to receive the Sebi nod.

Arun Kejriwal, market expert, Kejriwal Research said “The Adani debacle (Hindenburg report) can have a chilling effect on upcoming IPOs. Because of this, what has happened is valuations will take a hit. Only those companies which come with money on the table will make the cut. Investors will be even more conscious this time if companies come with higher valuations. More so, if the pricing of an IPO is not justified, investors may ignore such issues. The role of valuations will be paramount in most cases."

Priyanka Gawande
Priyanka Gawande is a senior legal correspondent at Mint. She has worked as legal reporter for four years with both television and digital mediums. Based in Mumbai, she reports on disputes across sectors including banking, corporates and finance. This also includes insolvency and bankruptcy cases and intellectual property rights (IPR) litigation. Her focus also comprises tracking capital markets and disputes relating to securities law. Previously, Priyanka worked with Informist Media for 2.5 years covering major insolvency and bankruptcy cases and corporate developments. She started her career in journalism with Business Television India (BTVi) where she reported on primary markets, banking, finance and insurance companies.
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