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Kalpataru Ltd IPO
Status: Closed
Overview
IPO date
24 Jun 2025 to 26 Jun 2025
Face value
₹ 10 per share
Price
₹ 387 to ₹414 per share
Issue Size
38,405,797 shares
(aggregating up to ₹ 1590 Cr)
(aggregating up to ₹ 1590 Cr)
Allotment Date
27 Jun 2025
Listing at
NSE
Issue type
Book Building
Sector
Construction
Objectives of Kalpataru Ltd IPO
Initial public offering of up to 38,444,611 equity shares of face value of Rs. 10 each ("Equity Shares") of Kalpataru Limited ("Company") for cash at a price of Rs.414 per equity share (including a share premium of Rs. 404 per equity share) ("Issue Price") aggregating up to Rs. 15,90.00 crores^ ("issue").
The issue includes a reservation of up to 422,872 equity shares aggregating up to Rs. 15.90 crores (constituting up to 0.21% of the post-issue paid-up equity share capital of the company) for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the book running lead managers ("brlms"), offered a discount of Rs. 38 per equity share representing of discount up to 9.18% of the issue price to eligible employees bidding in the employee reservation portion ("Employee Discount"). The issue less the employee reservation portion is hereinafter referred to as the "Net Issue". The issue and the net issue shall constitute 18.67 % and 18.46%,respectively, of the post-issue paid-up equity share capital of the company.
^ A discount of up to 9.18 % on the issue price (equivalent of Rs. 38 per equity share) was offered to eligible employees bidding in the employee reservation portion.
Kalpataru Ltd IPO Strategy
- Maintain its focus on the Mumbai Metropolitan Region and Pune, Maharashtra while selectively pursuing opportunities in other high growth cities.
- Completing and selling its Ongoing Projects, Forthcoming Projects and Planned Projects in a timely manner and unlocking potential value in its existing land reserves.
- Deleveraging its balance sheet.
- Further growing its real estate development business by entering into redevelopment, joint venture and joint development projects with other landowners to develop their land.
- Continue to focus on all segments of residential projects while selectively developing retail, commercial and other projects as part of mixed use developments.
- Continue to create innovative, quality, green and sustainable real estate developments.
About Kalpataru Ltd
Kalpataru Limited was originally incorporated as Kalpataru Homes Private Limited' , pursuant to a Certificate of Incorporation dated December 22, 1988, issued by the Additional Registrar of Companies, Maharashtra, Bombay. The Company name status was changed to Kalpataru Homes Limited', upon conversion into a Public Limited dated May 16, 1995, issued by the Additional RoC, Maharashtra, Bombay. and was further changed to Kalpataru Limited' and a fresh Certificate of Incorporation upon change of name was issued by the Deputy Registrar of Companies, Mumbai dated February 1, 2008.
Kalpataru is an integrated real estate development company involved in key activities associated with real estate development, including the identification and acquisition of land, planning, designing, execution, sales, and marketing of projects. It is a prominent real estate developer in the MMR and present across all micro-markets in MMR. It focus on development of luxury, premium, and mid income residential, commercial, and retail projects, integrated townships, lifestyle gated communities, and redevelopments.''
The Company in year 1990, completed commercial project Kalpataru Plaza in Pune, Maharashtra; completed residential project Kalpataru Apartments in Bengaluru, Karnataka in 1991, completed residential project Kalpataru Habitat in Pune, Maharashtra in 1993; completed residential project Nakshatra in Mumbai, Maharashtra in 1998; completed residential project, Siddhachal (phases I & II) in Thane, Mumbai, Maharashtra in 1999; completed commercial project Kalpataru Point in Mumbai, Maharashtra in year 2002; completed residential project Kalpataru Residency in Mumbai, Maharashtra in 2003; completed residential project Kalpataru Gardens Phase I in Mumbai, Maharashtra in 2005; completed commercial project Kalpataru Square in Mumbai, Maharashtra in 2008.
The Company launched first retail mall, Korum Mall, in Thane, Maharashtra in 2010; it then completed residential project Kalpataru Aura, Phase I in Mumbai, Maharashtra. In 2011, it acquired first integrated township project, Kalpataru Parkcity. The Company completed residential project Kalpataru Riverside in Panvel, Navi Mumbai, in 2013; started development of luxury villas at Amoda Reserve, Lonavala in 2015; completed residential redevelopment project Kalpataru Solitaire in Juhu, Mumbai, in 2018; completed residential project Sunrise in Kalpataru Parkcity, Thane, Maharashtra in 2019; completed commercial project Kalpataru Infinia in Pune, Maharashtra in 2020; completed residential project Kalpataru Residency in Hyderabad, Telangana in 2021; completed residential project Kalpataru Woodsville in Mumbai, Maharashtra in 2022; started plotted development in Karjat, Maharashtra in 2022-23 and has inaugurated the Namo Grand Central Park in Thane, Maharashtra in 2024.
The Company is planning to raise money from public through IPO aggregating upto Rs 1590 Crore Equity Shares.
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Strengths vs Risks of Kalpataru Ltd
Know the pros & cons
Strengths
Prominent real estate company in the Mumbai Metropolitan Region in Maharashtra with a portfolio of projects diversified across different micro-markets and price points in the Mumbai Metropolitan Region and Pune, Maharashtra- Well-established brand with the ability to sell throughout the construction phase
- Strong project pipeline with visibility towards near term cash flows
- Proven end-to-end execution capabilities with continuous innovation and ability to deliver projects in a timely fashion
- Leading real estate company in implementation of green and sustainable buildings
- its affiliation and relationship with the Kalpataru Group and the strong track record of its Promoters enhances its reputation and enables it to derive synergies in terms of expertise and experience
- Experienced and qualified management team with strong human resource practices
Risks
- The company has incurred net losses in the past. Any losses in future periods could adversely affect its financial condition, results of operations and cash flows and the trading price of its Equity Shares.
- As of December 31, 2024, 94.84% of its real estate development projects were located in and around the Mumbai Metropolitan Region and Pune and the company is exposed to risks originating from economic, regulatory, political and other changes in this region which could adversely affect its business, results of operations and financial condition.
- The company has not acquired the entirety of the land or rights required to develop two of its Planned Projects, Kalpataru Platina and Kalpataru Espacio. In the event the company is unable to acquire all the land required, its may not be able to develop these projects as planned, or at all.
- Its Statutory Auditors have included matters of emphasis and negative observations in their audit reports on its audited consolidated financial statements for the nine months ended December 31, 2024 and the past three Financial Years.
- There are outstanding litigation proceedings involving the Company, Subsidiaries, Joint Ventures, Associate, Group Companies, Directors, Key Managerial Personnel, Senior Management and Promoters and an adverse outcome may adversely affect its reputation, business, financial condition, results of operations and cash flows.
- As of December 31, 2024, 95.41% of the total Developable Area and 95.11% of its total Sales across the company Ongoing Projects, Forthcoming Projects and Planned Projects are attributable to residential projects. The company depends significantly on its residential development business which is subject to needs and preferences of its customers. The company failures to continually anticipate and respond to customer needs may affect its business and results of operations.
- The company has had net negative cash flows in the past and any negative cash flows in the future could adversely affect its cash flow requirements, which may adversely affect its ability to operate the company business and implement its growth strategies.
- Its Group Companies and certain Subsidiaries have incurred losses in the past. Sustained losses in the future by such Group Companies or Subsidiaries could require it to provide financial support, which could adversely affect its business, financial condition, results of operations and cash flows. received from one of its lenders, HDFC Bank Limited, is conditional on a part of the Net Proceeds being utilized towards repayment of Rs.5,000 million to HDFC Bank Limited.
- The company has incurred penalties in relation to compliance with its debt financing arrangements in the past and its future inability to meet the company obligations under its debt financing arrangements could adversely affect its business, results of operations, financial condition, and cash flows. Further, the consent.
- The company intend to utilize Rs.11,925.00 million out of the Net Proceeds of the Issue towards repayment/prepayment, in full or in part, of certain borrowings availed by the Company and its Subsidiaries. Any default by such Subsidiaries in relation to their outstanding borrowings or adverse developments in relation to their credit ratings could adversely affect its business, financial condition and results of operations.
- The company is exposed to the risks pertaining to land acquisition due to limited supply of land, increasing competition and applicable regulations, which may adversely affect its business, results of operations and financial condition.
- Its projects have long gestation periods and any delays and cost overruns in relation to its Ongoing Projects, Forthcoming Projects and Planned Projects could adversely affect its business, results of operations and financial condition.
- Its commercial and retail real estate businesses are dependent on its ability to provide high quality space to its customers, forecast demand, and enter into suitable leasing arrangements. Its inability to do so may adversely affect its business, results of operations and cash flows.
- Its business is capital intensive and requires significant expenditure. Limitations imposed on it due to the company indebtedness or its inability to procure additional indebtedness could adversely affect its ability to conduct the company business and operations or pursue its growth strategy.
- The company does not own the "Kalpataru" brand including the trademark, the word mark and the logo, which among other intellectual properties, is owned and has been licensed to it by Kalpataru Business Solutions Private Limited. Any failures to enforce its rights to use trademarks and brand names could have an adverse effect on its business and competitive position.
- Its operations are labour intensive, and the company may be subject to strikes, work stoppages, increased wage demands or high attrition, which could adversely affect its business, results of operations and financial condition.
- Redevelopment projects are subject to risks involving existing tenants, occupants and applicable Government regulations which may affect its project completion times and costs, and adversely affect its business, results of operations and cash flows.
- Disruption or fluctuation in supply or prices of key building materials could affect its estimated construction cost and timelines resulting in cost and time overruns, thereby adversely affecting its results of operations and financial condition.
- The company has pledged equity shares of its Subsidiaries in favour of certain lenders. In the event that such lenders exercise their rights under the respective share pledge agreements upon a default or breach under the financing agreement, its business, results of operations, and cash flows could be adversely affected.
- Certain non-generally accepted accounting principle financial measures and other statistical information relating to its operations and financial performance have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies and such measures may not compare favourably with its industry peer group companies, which could adversely affect its business, financial condition, results of operations and prospects.
- There have been instances of delays in payment of employee-related statutory dues by the Company in the past. Any failures or delay in payment of such statutory dues may expose it to statutory and regulatory action, as well as significant penalties, and may adversely affect its business, results of operations, cash flows and financial condition.
- There have been instances of delays in filing of goods and service tax returns by the Company in the past. Any failures or delay in such filings may expose it to statutory and regulatory actions and penalties, which could adversely affect its business, results of operations, cash flows and financial condition.
- It is difficult to compare its performance between periods, as the company revenues from operations and expenses fluctuate significantly from period to period.
- Its investments in partnership firms and LLPs, could expose it to risks relating to their financial performance, governance, taxation and regulatory compliance, which could adversely affect its financial condition, results of operations and cash flows.
- Its operations and the work force on project sites are exposed to a variety of hazards which may adversely affect its business, financial condition and results of operations.
- Certain of its corporate records, filings and instruments of transfer are not traceable. The company cannot assure you that legal proceedings or regulatory actions will not be initiated against it in the future, or that the company will not be subject to any penalty imposed by the competent regulatory authority in relation to such discrepancies.
- Its may be subject to third-party indemnification, liability claims or invocation of guarantees, which may adversely affect its business, cash flows, results of operations and reputation.
- Its inability to successfully implement its expansion and growth strategy could have an adverse effect on its business, results of operations, financial condition and cash flows.
- Unsold inventory in its projects if not sold in a timely manner may adversely affect its business, results of operations and financial condition.
- Its projects require the services of third parties, which entail risks that could adversely affect its business, results of operations and financial condition.
- The company enter into arrangements with various third parties to acquire land, and development and redevelopment rights, which entail risks that could adversely affect its business, financial condition and results of operations.
- Changes to the floor space index and transferable development rights by the relevant statutory authorities where its projects are located could adversely affect its business, financial condition and results of operations.
- 37.10%, 18.84% and 40.00% of its Sales value for the nine months ended December 31, 2024 and 43.26%, 35.99% and 16.32% of its Sales value for the Financial Year 2024 was attributable to highend, luxury and ultra-luxury residential projects, respectively, which are targeted at high-income customers. Any adverse developments affecting customers for such projects could have an adverse effect on its business, financial condition, results of operations and cash flows.
- The company is required to obtain statutory and regulatory approvals, licenses or permits at various stages in the development of its projects. If the company fails to obtain, maintain or renew our statutory and regulatory approvals or permits, its business, results of operations, financial condition, and cash flows could be adversely affected.
- A significant portion of its working capital needs are funded by presales. Any cancellation of sales or change in the laws or regulations governing the use of presales could adversely affect its results of operations and financial condition.
- The company is subject to safety, health, environmental, labour, and related laws in its business. Compliance with, and changes to, these laws may increase its compliance costs and may adversely affect its results of operations and financial condition.
- Its business and results of operations could be adversely affected by the incidence and rate of property taxes and stamp duties.
- Sales of its projects are dependent on and will be affected by the ability of its prospective customers to receive cost effective financing and favourable tax treatment.
- High levels of inventories and trade receivables may adversely affect its liquidity, cash flows and profitability.
- Title insurance is not available at commercially viable terms in India. The uncertainty of title to land makes the acquisition and development process more complicated, may impede the transfer of title, expose it to legal disputes and adversely affect its land valuations.
- The failures, inadequacy or breach of its information technology systems or its business processes regarding confidential information and other data, unauthorized access to its confidential information or violations of data protection laws could have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company benefit from its relationship with the company Promoters and its business and growth prospects may decline if the company cannot benefit from this relationship in the future.
- The company is dependent on its Key Managerial Personnel, Senior Management and other qualified and skilled employees. Its inability to attract or retain such persons could adversely affect its business, results of operations, financial condition and cash flows.
- Its Promoters, Directors, Key Managerial Personnel and Senior Management may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from the Company. Its Promoters and Directors may have interest in entities that are engaged in similar lines of business, which may result in conflicts of interest, adversely affecting its operations.
- Its insurance coverage may not adequately protect it against all risks, and the company may be subject to losses that might not be covered in whole or in part by its existing insurance coverage, which could have an adverse effect on its business, financial condition, results of operations and cash flows.
- A percentage of the Net Proceeds of the Issue will be used for repayment/pre-payment, in full or in part, of certain borrowings availed by its Subsidiaries, which may not be the most optimal use of funds and may not enhance its profitability or cash flows.
- The company will continue to be controlled by its Promoters after the completion of the Issue, who will continue to have significant influence over its business after the completion of the Issue and any substantial change in its Promoters' shareholding may have an effect on the trading price of its Equity Shares which could have an adverse effect on its business, financial condition, results of operations and cash flows.
- Its may be unable to obtain "green" certifications for new projects, which could have an adverse effect on its business.
- The company faces a variety of threats and challenges in the Indian residential real estate sector and an inability to address these challenges could adversely affect its business, financial condition, results of operations and cash flows.
- The company has entered into, and will continue to enter into, related party transactions and there can be no assurance that such transactions will always be in the best interests of its minority shareholders and will not have an adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company has contingent liabilities, which, if materialized, may adversely affect its results of operations, financial condition and cash flows.
- The company has provided guarantees to lenders for loans granted to its Subsidiaries and Group Companies, and any failures to repay such loans by such Subsidiaries and Group Companies may adversely affect its business, results of operations and financial condition.
- Certain statements contained in this Red Herring Prospectus are based on current management plans and estimates and may be subject to change. Adverse deviations from its management's estimates may result in it not achieving results as anticipated, which could have an adverse effect on its business, financial condition, results of operations and cash flows.
- Its business is highly competitive and the company cannot assure you that its will be able to compete effectively with other real estate companies.
- Corrupt practices or fraud or improper conduct may delay the development of a project and adversely affect its business and results of operations.
- This Red Herring Prospectus contains information from third parties including an industry report prepared by an independent third-party research agency, Anarock Property Consultants Private Limited, which the company has commissioned and paid for purposes of confirming its understanding of the industry exclusively in connection with the Issue and reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- The company has received complaints post the filing of the Draft Red Herring Prospectus with SEBI and any legal action initiated by the complainant may have an adverse impact on its reputation and would require the company to incur expenditure in defending such legal claims.
Kalpataru Ltd Peer Comparison
Understand the company’s industry standing
Kalpataru Limited
Oberoi Realty Limited
Macrotech Developers Limited
Face Value
10
10
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
1624.736
4495.79
10316.1
EPS-Basis
0.62
52.99
16.03
EPS-Diluted
0.56
52.99
15.99
NAV Per Share
113.11
380.76
175.66
P/E-Basic EPS
---
35.91
90.84
P/E-Diluted EPS
---
---
---
RONW(%)
0.55
13.92
8.87
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 24 Jun 2025 & closes on 26 Jun 2025.
Kalpataru Limited was originally incorporated as Kalpataru Homes Private Limited' , pursuant to a Certificate of Incorporation dated December 22, 1988, issued by the Additional Registrar of Companies, Maharashtra, Bombay. The Company name status was changed to Kalpataru Homes Limited', upon conversion into a Public Limited dated May 16, 1995, issued by the Additional RoC, Maharashtra, Bombay. and was further changed to Kalpataru Limited' and a fresh Certificate of Incorporation upon change of name was issued by the Deputy Registrar of Companies, Mumbai dated February 1, 2008.
Kalpataru is an integrated real estate development company involved in key activities associated with real estate development, including the identification and acquisition of land, planning, designing, execution, sales, and marketing of projects. It is a prominent real estate developer in the MMR and present across all micro-markets in MMR. It focus on development of luxury, premium, and mid income residential, commercial, and retail projects, integrated townships, lifestyle gated communities, and redevelopments.''
The Company in year 1990, completed commercial project Kalpataru Plaza in Pune, Maharashtra; completed residential project Kalpataru Apartments in Bengaluru, Karnataka in 1991, completed residential project Kalpataru Habitat in Pune, Maharashtra in 1993; completed residential project Nakshatra in Mumbai, Maharashtra in 1998; completed residential project, Siddhachal (phases I & II) in Thane, Mumbai, Maharashtra in 1999; completed commercial project Kalpataru Point in Mumbai, Maharashtra in year 2002; completed residential project Kalpataru Residency in Mumbai, Maharashtra in 2003; completed residential project Kalpataru Gardens Phase I in Mumbai, Maharashtra in 2005; completed commercial project Kalpataru Square in Mumbai, Maharashtra in 2008.
The Company launched first retail mall, Korum Mall, in Thane, Maharashtra in 2010; it then completed residential project Kalpataru Aura, Phase I in Mumbai, Maharashtra. In 2011, it acquired first integrated township project, Kalpataru Parkcity. The Company completed residential project Kalpataru Riverside in Panvel, Navi Mumbai, in 2013; started development of luxury villas at Amoda Reserve, Lonavala in 2015; completed residential redevelopment project Kalpataru Solitaire in Juhu, Mumbai, in 2018; completed residential project Sunrise in Kalpataru Parkcity, Thane, Maharashtra in 2019; completed commercial project Kalpataru Infinia in Pune, Maharashtra in 2020; completed residential project Kalpataru Residency in Hyderabad, Telangana in 2021; completed residential project Kalpataru Woodsville in Mumbai, Maharashtra in 2022; started plotted development in Karjat, Maharashtra in 2022-23 and has inaugurated the Namo Grand Central Park in Thane, Maharashtra in 2024.
The Company is planning to raise money from public through IPO aggregating upto Rs 1590 Crore Equity Shares.
Kalpataru Ltd IPO will close on 26 Jun 2025.
- Prominent real estate company in the Mumbai Metropolitan Region in Maharashtra with a portfolio of projects diversified across different micro-markets and price points in the Mumbai Metropolitan Region and Pune, Maharashtra
- Well-established brand with the ability to sell throughout the construction phase
- Strong project pipeline with visibility towards near term cash flows
- Proven end-to-end execution capabilities with continuous innovation and ability to deliver projects in a timely fashion
- Leading real estate company in implementation of green and sustainable buildings
- its affiliation and relationship with the Kalpataru Group and the strong track record of its Promoters enhances its reputation and enables it to derive synergies in terms of expertise and experience
- Experienced and qualified management team with strong human resource practices
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Mofatraj P Mount | 36309000 | 21.68 | 36309000 | 17.63 |
| 2 | Parag M Mount | 20301705 | 12.12 | 20301705 | 9.86 |
| 3 | Appropriate Developers Private | 13938400 | 8.32 | 13938400 | 6.77 |
| 4 | Shouri Investment and Trading | 13685700 | 8.17 | 13685700 | 6.65 |
| 5 | Mrigashish Investment and Trad | 13685700 | 8.17 | 13685700 | 6.65 |
| 6 | Flex-O-Poly Private Limited | 13685700 | 8.17 | 13685700 | 6.65 |
| 7 | Mrigashish Constructions Priva | 13406400 | 8 | 13406400 | 6.51 |
| 8 | Monica P. Munot | 6982500 | 4.17 | 6982500 | 3.39 |
| 9 | Sudha R. Golechha | 5236875 | 3.13 | 5236875 | 2.54 |
| 10 | Sunita V. Choraria | 5236875 | 3.13 | 5236875 | 2.54 |
| 11 | Mofatraj P. Munot and Parag M. | 4887750 | 2.92 | 4887750 | 2.37 |
| 12 | MPM Holding LLP | 13300 | 0.01 | 13300 | --- |
| 13 | Mofatraj P. Munot (HUF) | 13300 | 0.01 | 13300 | --- |
| 14 | Kalpataru Constructions Privat | 18463026 | 11.02 | 18463026 | 8.97 |
| 15 | Ixora Properties Private Limit | 1643306 | 0.98 | 1643306 | 0.8 |
- The company has incurred net losses in the past. Any losses in future periods could adversely affect its financial condition, results of operations and cash flows and the trading price of its Equity Shares.
- As of December 31, 2024, 94.84% of its real estate development projects were located in and around the Mumbai Metropolitan Region and Pune and the company is exposed to risks originating from economic, regulatory, political and other changes in this region which could adversely affect its business, results of operations and financial condition.
- The company has not acquired the entirety of the land or rights required to develop two of its Planned Projects, Kalpataru Platina and Kalpataru Espacio. In the event the company is unable to acquire all the land required, its may not be able to develop these projects as planned, or at all.
- Its Statutory Auditors have included matters of emphasis and negative observations in their audit reports on its audited consolidated financial statements for the nine months ended December 31, 2024 and the past three Financial Years.
- There are outstanding litigation proceedings involving the Company, Subsidiaries, Joint Ventures, Associate, Group Companies, Directors, Key Managerial Personnel, Senior Management and Promoters and an adverse outcome may adversely affect its reputation, business, financial condition, results of operations and cash flows.
- As of December 31, 2024, 95.41% of the total Developable Area and 95.11% of its total Sales across the company Ongoing Projects, Forthcoming Projects and Planned Projects are attributable to residential projects. The company depends significantly on its residential development business which is subject to needs and preferences of its customers. The company failures to continually anticipate and respond to customer needs may affect its business and results of operations.
- The company has had net negative cash flows in the past and any negative cash flows in the future could adversely affect its cash flow requirements, which may adversely affect its ability to operate the company business and implement its growth strategies.
- Its Group Companies and certain Subsidiaries have incurred losses in the past. Sustained losses in the future by such Group Companies or Subsidiaries could require it to provide financial support, which could adversely affect its business, financial condition, results of operations and cash flows. received from one of its lenders, HDFC Bank Limited, is conditional on a part of the Net Proceeds being utilized towards repayment of Rs.5,000 million to HDFC Bank Limited.
- The company has incurred penalties in relation to compliance with its debt financing arrangements in the past and its future inability to meet the company obligations under its debt financing arrangements could adversely affect its business, results of operations, financial condition, and cash flows. Further, the consent.
- The company intend to utilize Rs.11,925.00 million out of the Net Proceeds of the Issue towards repayment/prepayment, in full or in part, of certain borrowings availed by the Company and its Subsidiaries. Any default by such Subsidiaries in relation to their outstanding borrowings or adverse developments in relation to their credit ratings could adversely affect its business, financial condition and results of operations.
- The company is exposed to the risks pertaining to land acquisition due to limited supply of land, increasing competition and applicable regulations, which may adversely affect its business, results of operations and financial condition.
- Its projects have long gestation periods and any delays and cost overruns in relation to its Ongoing Projects, Forthcoming Projects and Planned Projects could adversely affect its business, results of operations and financial condition.
- Its commercial and retail real estate businesses are dependent on its ability to provide high quality space to its customers, forecast demand, and enter into suitable leasing arrangements. Its inability to do so may adversely affect its business, results of operations and cash flows.
- Its business is capital intensive and requires significant expenditure. Limitations imposed on it due to the company indebtedness or its inability to procure additional indebtedness could adversely affect its ability to conduct the company business and operations or pursue its growth strategy.
- The company does not own the "Kalpataru" brand including the trademark, the word mark and the logo, which among other intellectual properties, is owned and has been licensed to it by Kalpataru Business Solutions Private Limited. Any failures to enforce its rights to use trademarks and brand names could have an adverse effect on its business and competitive position.
- Its operations are labour intensive, and the company may be subject to strikes, work stoppages, increased wage demands or high attrition, which could adversely affect its business, results of operations and financial condition.
- Redevelopment projects are subject to risks involving existing tenants, occupants and applicable Government regulations which may affect its project completion times and costs, and adversely affect its business, results of operations and cash flows.
- Disruption or fluctuation in supply or prices of key building materials could affect its estimated construction cost and timelines resulting in cost and time overruns, thereby adversely affecting its results of operations and financial condition.
- The company has pledged equity shares of its Subsidiaries in favour of certain lenders. In the event that such lenders exercise their rights under the respective share pledge agreements upon a default or breach under the financing agreement, its business, results of operations, and cash flows could be adversely affected.
- Certain non-generally accepted accounting principle financial measures and other statistical information relating to its operations and financial performance have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies and such measures may not compare favourably with its industry peer group companies, which could adversely affect its business, financial condition, results of operations and prospects.
- There have been instances of delays in payment of employee-related statutory dues by the Company in the past. Any failures or delay in payment of such statutory dues may expose it to statutory and regulatory action, as well as significant penalties, and may adversely affect its business, results of operations, cash flows and financial condition.
- There have been instances of delays in filing of goods and service tax returns by the Company in the past. Any failures or delay in such filings may expose it to statutory and regulatory actions and penalties, which could adversely affect its business, results of operations, cash flows and financial condition.
- It is difficult to compare its performance between periods, as the company revenues from operations and expenses fluctuate significantly from period to period.
- Its investments in partnership firms and LLPs, could expose it to risks relating to their financial performance, governance, taxation and regulatory compliance, which could adversely affect its financial condition, results of operations and cash flows.
- Its operations and the work force on project sites are exposed to a variety of hazards which may adversely affect its business, financial condition and results of operations.
- Certain of its corporate records, filings and instruments of transfer are not traceable. The company cannot assure you that legal proceedings or regulatory actions will not be initiated against it in the future, or that the company will not be subject to any penalty imposed by the competent regulatory authority in relation to such discrepancies.
- Its may be subject to third-party indemnification, liability claims or invocation of guarantees, which may adversely affect its business, cash flows, results of operations and reputation.
- Its inability to successfully implement its expansion and growth strategy could have an adverse effect on its business, results of operations, financial condition and cash flows.
- Unsold inventory in its projects if not sold in a timely manner may adversely affect its business, results of operations and financial condition.
- Its projects require the services of third parties, which entail risks that could adversely affect its business, results of operations and financial condition.
- The company enter into arrangements with various third parties to acquire land, and development and redevelopment rights, which entail risks that could adversely affect its business, financial condition and results of operations.
- Changes to the floor space index and transferable development rights by the relevant statutory authorities where its projects are located could adversely affect its business, financial condition and results of operations.
- 37.10%, 18.84% and 40.00% of its Sales value for the nine months ended December 31, 2024 and 43.26%, 35.99% and 16.32% of its Sales value for the Financial Year 2024 was attributable to highend, luxury and ultra-luxury residential projects, respectively, which are targeted at high-income customers. Any adverse developments affecting customers for such projects could have an adverse effect on its business, financial condition, results of operations and cash flows.
- The company is required to obtain statutory and regulatory approvals, licenses or permits at various stages in the development of its projects. If the company fails to obtain, maintain or renew our statutory and regulatory approvals or permits, its business, results of operations, financial condition, and cash flows could be adversely affected.
- A significant portion of its working capital needs are funded by presales. Any cancellation of sales or change in the laws or regulations governing the use of presales could adversely affect its results of operations and financial condition.
- The company is subject to safety, health, environmental, labour, and related laws in its business. Compliance with, and changes to, these laws may increase its compliance costs and may adversely affect its results of operations and financial condition.
- Its business and results of operations could be adversely affected by the incidence and rate of property taxes and stamp duties.
- Sales of its projects are dependent on and will be affected by the ability of its prospective customers to receive cost effective financing and favourable tax treatment.
- High levels of inventories and trade receivables may adversely affect its liquidity, cash flows and profitability.
- Title insurance is not available at commercially viable terms in India. The uncertainty of title to land makes the acquisition and development process more complicated, may impede the transfer of title, expose it to legal disputes and adversely affect its land valuations.
- The failures, inadequacy or breach of its information technology systems or its business processes regarding confidential information and other data, unauthorized access to its confidential information or violations of data protection laws could have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company benefit from its relationship with the company Promoters and its business and growth prospects may decline if the company cannot benefit from this relationship in the future.
- The company is dependent on its Key Managerial Personnel, Senior Management and other qualified and skilled employees. Its inability to attract or retain such persons could adversely affect its business, results of operations, financial condition and cash flows.
- Its Promoters, Directors, Key Managerial Personnel and Senior Management may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from the Company. Its Promoters and Directors may have interest in entities that are engaged in similar lines of business, which may result in conflicts of interest, adversely affecting its operations.
- Its insurance coverage may not adequately protect it against all risks, and the company may be subject to losses that might not be covered in whole or in part by its existing insurance coverage, which could have an adverse effect on its business, financial condition, results of operations and cash flows.
- A percentage of the Net Proceeds of the Issue will be used for repayment/pre-payment, in full or in part, of certain borrowings availed by its Subsidiaries, which may not be the most optimal use of funds and may not enhance its profitability or cash flows.
- The company will continue to be controlled by its Promoters after the completion of the Issue, who will continue to have significant influence over its business after the completion of the Issue and any substantial change in its Promoters' shareholding may have an effect on the trading price of its Equity Shares which could have an adverse effect on its business, financial condition, results of operations and cash flows.
- Its may be unable to obtain "green" certifications for new projects, which could have an adverse effect on its business.
- The company faces a variety of threats and challenges in the Indian residential real estate sector and an inability to address these challenges could adversely affect its business, financial condition, results of operations and cash flows.
- The company has entered into, and will continue to enter into, related party transactions and there can be no assurance that such transactions will always be in the best interests of its minority shareholders and will not have an adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company has contingent liabilities, which, if materialized, may adversely affect its results of operations, financial condition and cash flows.
- The company has provided guarantees to lenders for loans granted to its Subsidiaries and Group Companies, and any failures to repay such loans by such Subsidiaries and Group Companies may adversely affect its business, results of operations and financial condition.
- Certain statements contained in this Red Herring Prospectus are based on current management plans and estimates and may be subject to change. Adverse deviations from its management's estimates may result in it not achieving results as anticipated, which could have an adverse effect on its business, financial condition, results of operations and cash flows.
- Its business is highly competitive and the company cannot assure you that its will be able to compete effectively with other real estate companies.
- Corrupt practices or fraud or improper conduct may delay the development of a project and adversely affect its business and results of operations.
- This Red Herring Prospectus contains information from third parties including an industry report prepared by an independent third-party research agency, Anarock Property Consultants Private Limited, which the company has commissioned and paid for purposes of confirming its understanding of the industry exclusively in connection with the Issue and reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- The company has received complaints post the filing of the Draft Red Herring Prospectus with SEBI and any legal action initiated by the complainant may have an adverse impact on its reputation and would require the company to incur expenditure in defending such legal claims.
The Issue type of Kalpataru Ltd is Book Building.
The minimum application for shares of Kalpataru Ltd is 36.
The total shares issue of Kalpataru Ltd is 38405797.
Initial public offering of up to 38,444,611 equity shares of face value of Rs. 10 each ("Equity Shares") of Kalpataru Limited ("Company") for cash at a price of Rs.414 per equity share (including a share premium of Rs. 404 per equity share) ("Issue Price") aggregating up to Rs. 15,90.00 crores^ ("issue").
The issue includes a reservation of up to 422,872 equity shares aggregating up to Rs. 15.90 crores (constituting up to 0.21% of the post-issue paid-up equity share capital of the company) for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the book running lead managers ("brlms"), offered a discount of Rs. 38 per equity share representing of discount up to 9.18% of the issue price to eligible employees bidding in the employee reservation portion ("Employee Discount"). The issue less the employee reservation portion is hereinafter referred to as the "Net Issue". The issue and the net issue shall constitute 18.67 % and 18.46%,respectively, of the post-issue paid-up equity share capital of the company.
^ A discount of up to 9.18 % on the issue price (equivalent of Rs. 38 per equity share) was offered to eligible employees bidding in the employee reservation portion.
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