Kalpataru IPO Sees Lukewarm Response Ahead of Final Bidding Day - Subscribed Just 0.35 Times

Mumbai, 26 June 2025: The ₹1,590 crore initial public offering (IPO) of Kalpataru Ltd. enters its final bidding day with only 35 percent of the total issue subscribed so far. Despite strong backing from anchor investors, overall market participation remains subdued.

As of the latest data, bids have been received for 79.61 lakh shares, against a total offering of 2.28 crore shares, reflecting cautious sentiment among investors.

Retail Investors Show More Interest as Institutions Hold Back

The subscription status across investor categories shows a mixed picture:

• Retail Investors: 0.73 times subscribed
• Non-Institutional Investors (NIIs): 0.45 times subscribed
• Qualified Institutional Buyers (QIBs): 0.17 times subscribed
• Employee Quota: 0.38 times subscribed

Retail participation is relatively stronger, while the institutional and employee categories lag, underscoring hesitancy among larger investors.

IPO Structure, Pricing and Allocation

Kalpataru’s IPO is a complete fresh issue, with the proceeds intended for:

• Repayment or prepayment of select borrowings
• General corporate purposes

Price Band: ₹387 to ₹414 per equity share

Minimum Application: 36 shares and in multiples thereafter

The issue allocation is structured as follows:

• 75% to Qualified Institutional Buyers
• 15% to Non-Institutional Investors
• 10% to Retail Individual Investors

Eligible employees are being offered a discount of ₹38 per share, with up to ₹15.90 crore worth of shares reserved under this category.

₹708 Crore Raised from Anchor Investors Before Launch

Prior to the IPO opening, Kalpataru successfully garnered ₹708 crore through the anchor book route, allotting 1.71 crore shares at ₹414 apiece.

Key participants in the anchor placement included:

• GIC
• Bain Capital
• SBI Mutual Fund
• ICICI Prudential Mutual Fund
• SBI General Insurance
• Aditya Birla Sun Life Insurance
• 360 ONE WAM

This strong anchor backing had raised initial hopes for broader subscription, though general investor interest has remained tepid.

About Kalpataru Ltd- Established Real Estate Brand in MMR

Founded in 1988, Kalpataru Ltd. is a prominent real estate developer in the Mumbai Metropolitan Region (MMR). The company specialises in luxury, premium, and mid-income residential properties, as well as commercial, retail, and redevelopment projects across key Indian cities.

It is part of the Kalpataru Group, which also operates in the construction and infrastructure sectors.

Listing and Issue Management

Once the IPO concludes, Kalpataru’s equity shares are set to list on both the BSE and NSE.

The issue is being jointly managed by:

• ICICI Securities
• JM Financial
• Nomura Financial Advisory

Final Verdict Hinges on Last-Minute Investor Push

With the IPO closing by the end of the day today, investor activity in the final hours will be critical in determining whether the issue crosses the subscription threshold. Market watchers will be monitoring closely to see if momentum builds before the window shuts.

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