Is Kalpataru IPO Good or Bad – Detailed Review

Kalpataru Limited IPO is kicking off its initial public offering, which will be open from June 24, 2025, to June 26, 2025. While considering applying for this IPO, certain questions may arise in your mind, including whether the Kalpataru IPO is good or bad, whether it is worth investing in this IPO, and so on. 

This article offers a comprehensive Kalpataru IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

Kalpataru IPO Review

Scoda Tubes is gearing up for its Initial Public Offering (IPO), aiming to raise Rs 1,590 crore. The proceeds are primarily earmarked to repay or prepay certain borrowings taken by the company and its subsidiaries, and for general corporate purposes.

Kalpataru experienced volatile financial performance between FY22 and FY24, with revenue peaking in FY23 before dropping significantly in FY24. Despite continued losses in EBITDA and PAT over the three years, the nine months ending December 31, 2024, mark a turnaround, reporting a positive EBITDA of Rs 101.66 crore and a PAT of Rs 5.51 crore.

Compared to its peers in 9M FY25, Kalpataru, with a revenue of Rs 1,624.74 crore, remains smaller in scale than large players like Macrotech Developers and Prestige Estates. Its EPS of Rs 0.62 and a Return on Net Worth (RoNW) of just 0.55% indicate modest profitability and lower capital efficiency relative to all listed competitors. While Kalpataru has a reasonable presence, it currently underperforms on key return and value metrics.

That said, potential investors are strongly advised to conduct their own independent analysis and consult financial advisors before making any investment decision. Keep reading to find out more about the company’s background, business model, and growth strategy.

Company Overview of Kalpataru IPO

Established in 1969 by Mr. Mofatraj P. Munot, Kalpataru Group has built a legacy spanning over 55 years. It is a leading integrated real estate development company, actively involved in land acquisition, planning, design, construction, sales, and marketing of residential, commercial, and retail projects. Headquartered in Maharashtra, the group is a key player across all micro-markets within the Mumbai Metropolitan Region (MMR) and holds a notable presence in Pune, Hyderabad, Indore, Bengaluru, and Jodhpur.

Between 2019 and December 31, 2024, MMR ranked first among India’s top seven real estate markets in terms of supply, absorption, and average base selling price. During this period, Kalpataru was the fifth largest developer in the MCGM area and the seventh largest in Thane, based on units supplied. Furthermore, as of December 31, 2024, Kalpataru and its promoters had completed 120 projects covering over 25.87 million square feet (msf) of developable area. 

Kalpataru Group develops a range of properties, including villas, duplexes, apartments, plots, office spaces, shopping malls, integrated townships, and gated communities, catering to the luxury, premium, and mid-income segments. Commercial units are developed for leasing and/or sale, while retail spaces are primarily managed and leased. The company adopts both traditional land acquisition and asset-light models, including redevelopment, joint development agreements (JDAs), and joint ventures (JVs) for project execution. 

In addition to real estate, the Group has a multinational presence in EPC contracting for sectors such as power transmission, oil and gas, railways, civil infrastructure, logistics, and facility management. Known for quality and customer-centricity, Kalpataru emphasizes green and sustainable development. A founding member of the Indian Green Building Council, it made history in 2009 when its Kalpataru Square project became Asia’s first and the world’s sixth to receive the LEED Core & Shell 2.0 Platinum certification. 

Industry Overview of Kalpataru IPO 

India’s real estate demand is being driven by rapid urbanization, rising income levels, a favorable demographic shift, and the growing trend of nuclear families. With nearly 50% of the population expected to live in urban areas by 2046 and eight cities projected to exceed 10 million residents by 2035, the need for housing and infrastructure is set to surge. Simultaneously, rising incomes and a growing middle class are expected to fuel the demand for over 100 million housing units by 2030.

Post-pandemic, the real estate sector saw strong policy support through repo rate cuts, loan restructuring, and liquidity measures. Initiatives like PMAY-Urban 2.0, SWAMIH Fund, and state-level benefits such as stamp duty cuts and property tax waivers have boosted demand and aided sector recovery. Regulatory reforms such as RERA, GST, the Benami Transactions Act, and demonetization have enhanced transparency and accountability in India’s real estate sector. These changes, along with reduced funding for unorganized developers, have led to industry consolidation, favoring established players. 

From 2019 to 2024, India’s top real estate markets saw strong demand and rising prices, with over 4.5 lakh units absorbed in 2024 and capital values increasing by over 40% in key cities. Affordability and home loan access have improved, boosting housing demand. Buyers now prefer branded developers and near-ready homes for reliability. Green buildings are also gaining traction, with sustainability becoming a key focus in real estate development. 

Financial Overview of Kalpataru IPO

Kalpataru’s financial performance between FY22 and FY24 shows significant volatility. In FY22, the company recorded a revenue of Rs 1,000.67 crore, which jumped sharply to Rs 3,633.08 crore in FY23. However, this momentum reversed in FY24, with revenue declining to Rs 1,929.98 crore, which is nearly a 47% drop from the previous year.

The EBITDA remained negative across all three years. It was (Rs 35.97) crore in FY22, and (Rs 49.66) crore in FY23, and then worsened to (Rs 78.01) crore in FY24. PAT (Profit After Tax) also remained negative across the three years, standing at (Rs 125.36) crore in FY22, deteriorating further to (Rs 229.43) crore in FY23, and then showing slight improvements at (Rs 116.50) crore in FY24. 

Currently, for the nine months ended December 31, 2024, Kalpataru reported a revenue of Rs 1,624.73 crore. The company is seen to have a positive EBITDA of Rs 101.66 crore and a margin of  6.26%, along with a positive PAT of Rs 5.51 crore.  

Strengths and Risks of Kalpataru IPO

Let’s dive into the strengths and weaknesses to assess if the Kalpataru IPO is good or bad for investors.

Strengths 

• Strong market presence:
  Kalpataru Group is a leading real estate developer in the Mumbai Metropolitan Region and Pune, with a broad portfolio across micro-markets and price segments. As of December 31, 2024, 94.84% of its development portfolio is concentrated in these regions, giving it a strategic advantage in capturing growth and market share.

• Trusted brand legacy:
  With a 55-year legacy, Kalpataru Group is recognized for its strong brand value, enabling it to command premium pricing and achieve high sales during the construction phase. Its trusted reputation attracts both customers and landowners, positioning it well to capitalize on industry trends favoring branded developers.

• Robust project pipeline:
  Kalpataru Group’s portfolio of 25 ongoing, 6 forthcoming, and 5 planned projects as of December 31, 2024, offers strong near-term cash flow visibility. Strategic developments like Kalpataru Parkcity in Thane and growing infrastructure in MMR enhance its competitive edge and long-term growth potential.

• Comprehensive execution capabilities:
  The group follows an integrated development model with in-house expertise across land acquisition, design, approvals, construction, and marketing. Its strong execution framework, supported by global consultants and rigorous quality controls, ensures the timely delivery of diverse, high-quality real estate projects.

• Pioneer in green and sustainable building practices:
  It is a founding member of the Indian Green Building Council (IGBC) and integrates eco-friendly design, materials, and technologies across its projects. With a strong focus on energy efficiency, water conservation, and resident well-being, it continues to lead in developing sustainable, resource-efficient, and environmentally responsible buildings.

Risks

• Past losses and risk of continued financial strain:
  The company reported losses in recent years primarily due to their revenue recognition method under IND AS 115 and rising operational costs. So, future losses could impact their financial position and equity share value.

• Dependence on the residential segment:
  As of December 31, 2024, nearly 95% of Kalpataru’s projects and sales are from residential developments. The company’s performance depends on its ability to meet evolving customer preferences across luxury, premium, and mid-income segments, especially in the MMR and Pune regions.

• Land acquisition challenges:
  Kalpataru faces risks related to limited land availability, rising competition, and complex regulations, especially in MMR and Pune. Difficulty in acquiring suitable land at reasonable prices or delays due to legal disputes could impact its future projects and financial performance.

• Project delays and cost overruns:
  Kalpataru's real estate projects have long development timelines and are exposed to risks like regulatory delays, financing challenges, and third-party dependencies. Any delays or cost overruns could impact their business, cash flows, and overall financial performance.

• Risks in redevelopment projects:
  Kalpataru’s redevelopment projects face risks such as delays in tenant consent, regulatory challenges, and potential cost overruns. Any failure to meet timelines may lead to penalties, forfeiture of deposits or guarantees, and impact their profitability and cash flows.

• Dependence on presales for working capital:
  Kalpataru relies heavily on presales to meet its working capital needs. Any decline in presales, cancellations, or regulatory changes could strain its liquidity and adversely impact its financial performance. 

Strategies of Kalpataru IPO

• Strategic expansion:
  Kalpataru Group continues to prioritize the Mumbai Metropolitan Region and Pune markets, which have high entry barriers and strong demand, while selectively expanding into emerging cities like Hyderabad, Noida, Nagpur, Surat, and Udaipur to capture future growth opportunities.

• Timely execution and land reserve strategy:
  It aims to complete and sell its ongoing, forthcoming, and planned projects on schedule while unlocking value from its 1,886+ acres of land reserves through phased development, strategic sales, or partnerships to optimize capital use.

• Focused deleveraging approach:
  Kalpataru Group is actively reducing its debt through improved cash flows, strategic asset monetization, and conversion of promoter loans into equity. It also continues to explore refinancing and capital-efficient development models to strengthen its balance sheet.

• Growth through partnerships:
  The group is expanding its real estate business by increasing its focus on redevelopment, joint ventures, and joint development agreements, especially in land-scarce areas of Mumbai, offering a capital-efficient way to grow and capture greater market share.

• Residential-led strategy:
  Kalpataru continues to prioritize residential projects, which make up over 95% of its development portfolio, while selectively integrating retail and commercial spaces into mixed-use developments based on market potential and location dynamics.

• Innovative and sustainable development:
  It aims to scale its business while maintaining a strong focus on quality, innovation, and sustainability. By leveraging advanced technologies and green practices, it continues to deliver high-performance real estate projects that enhance customer experience and environmental responsibility.

Kalpataru IPO Vs Peers

Source: RHP of the company

With a revenue of Rs 1,624.736 crore, Kalpataru Limited is relatively smaller in scale compared to its listed real estate peers such as Macrotech Developers and Prestige Estates Projects. 

In terms of earnings, Kalpataru reported an EPS (Basic) of Rs 0.62. This is significantly lower compared to high-performing peers such as Oberoi Realty and Prestige Estates, indicating a relatively modest profitability per share at present. 

What we need to observe here is the Return on Net Worth (RoNW), which at 0.55% is lower than all of its listed peers. For comparison, Oberoi Realty (13.92%), Macrotech Developers (9.87%), and Godrej Properties (7.26%) all report healthier returns on shareholders’ equity, while even smaller firms like Sunteck Realty (2.27%) and Mahindra Lifespace Developers (2.53%) outperform Kalpataru on this front. This suggests that Kalpataru may currently be lagging in capital efficiency and internal returns.

Objectives of Kalpataru IPO 

The issue by the IPO will be used by the company for the following purposes:

• Repayment or pre-payment, in full or in part, of certain borrowings availed by the company and its subsidiaries.

• General corporate purposes.

Kalpataru IPO Details

IPO Dates

Kalpataru IPO will be open for subscription from June 24, 2025, to June 26, 2025. The allotment of shares to investors will take place on June 27, 2025, and the company will be listed on the NSE and BSE on July 1, 2025.

IPO Issue Price

Kalpataru is offering its shares in the price band of Rs 387 to Rs 414 per share. This means you would require an investment of Rs. 14,904 per lot (36 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Kalpataru is issuing a total of 3,84,05,797 shares, which are worth Rs 1,590 crores, which is completely through a fresh issue. 

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on June 27, 2025, through the registrar's website: MUFG Intime India Private Limited, BSE, NSE, or their stockbroker platform. 

IPO Listing Date

The shares of Kalpataru will be listed on the NSE and BSE on July 1, 2025.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Kalpataru IPO