Kalpataru makes muted debut, trades 3.86% above issue price amid debt concerns 

Mr. Mofatraj Munot (Non-Executive Chairman, Kalpataru Limited) and Mr. Parag Munot (Managing Director, Kalpataru Limited) presenting the memento to Shri Ashish Kumar Chauhan (MD and CEO, NSE) during the listing ceremony of Kalpataru Limited at NSE.

Kalpataru Limited made a subdued stock market debut on Tuesday, listing at ₹430 on the NSE against its issue price of ₹414, marking a modest 3.86 per cent premium. The real estate developer’s shares opened at ₹414 and touched a high of ₹452.80 during the trading session, with buy quantity at 5,18,283 shares against sell quantity of 4,66,387 shares as of 2.51 PM.

The tepid listing comes despite the company’s strong subscription numbers, with the IPO being oversubscribed 2.26 times when it closed on June 26. Qualified institutional buyers (QIB) led the demand with 3.12 times subscription, while non-institutional investors subscribed 1.31 times and retail investors 1.29 times.

Kalpataru raised ₹708 crore from nine anchor investors at the upper price band, with Singapore’s GIC and Bain Capital taking significant portions. Other marquee investors included SBI Mutual Fund, ICICI Prudential MF, SBI General Insurance, and Aditya Birla Sun Life Insurance.

However, analysts remain cautious about the Mumbai-based developer’s prospects. Harshal Dasani from INVasset PMS highlighted concerns over the company’s ₹11,000+ crore debt burden against its ₹8,500 crore market capitalization. Despite generating ₹1,930 crore revenue in FY24, Kalpataru posted a net loss and managed only ₹5 crore profit in the first nine months of FY25.

The company operates over 40 ongoing projects primarily in Mumbai Metropolitan Region and Pune, with IPO proceeds earmarked largely for debt repayment.

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Published on July 1, 2025