Real Estate Firm Kalpataru Sets IPO Price Band At Rs 387-414/Share

Real estate developer Kalpataru Ltd on Thursday fixed a price band of Rs 387 to Rs 414 per share for its Rs 1,590 crore Initial Public Offering (IPO). The initial share sale will open for public subscription on June 24 and conclude on June 26.

The bidding for anchor investors will open on June 23, the company announced. The company's IPO is entirely a fresh issue of equity shares worth Rs 1,590 crore with no Offer For Sale (OFS) component. At the upper end of the price band, the company is valued around Rs 8,500 crore, brokerage houses said.

The Mumbai-based company proposes to utilise funds for the payment of debt and for general corporate purposes. Kalpataru Ltd is a prominent real estate developer in the Mumbai Metropolitan Region (MMR) in Maharashtra and is present across all micro-markets in the MMR. While a majority of the company's projects are located in the MMR and Pune (Maharashtra), it also has projects in Hyderabad (Telangana) and Noida (Uttar Pradesh).

The company focuses on the development of luxury, premium, and mid-income residential, commercial, and retail projects, integrated townships, lifestyle gated communities, and redevelopments. Kalpataru Ltd is a part of the Kalpataru Group, which has a multi-national presence and has operations in EPC contracting for power transmission and distribution, oil and gas, railways, civil infrastructure projects, warehousing and logistics, and facility management.

The company announced that 75 per cent of the offer size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Further, investors can bid for a minimum of 36 shares and in multiple thereof. ICICI Securities Ltd, JM Financial Ltd and Nomura Financial Advisory and Securities (India) Private Ltd are the book running lead managers to the issue. Shares of the company are expected to list on July 1 on the BSE and NSE.