Real estate developer Kalpataru has filed a draft red herring prospectus to raise ₹1,590 crore through a fresh issue of shares, the major portion of the funds being used to repay loans and the remaining for general corporate purposes. The entire initial public offering is a fresh issue of shares.
The Mumbai-based builder has completed 70 projects covering an area of over 15 million square feet in Mumbai, Pune, Thane, Hyderabad, and Bengaluru. It has 25 ongoing projects with an area of 22 msf, 10 projects that are forthcoming and 5 projects that are being planned. Together they will have an area of close to 50 msf. Of the total number of projects, 37 are residential.
It is focused on luxury, premium, and mid-income residential, commercial and retail projects, integrated townships, lifestyle gated communities and redevelopments. In the residential segment it sells villas, duplexes, apartments, and plots of varying sizes.
Over 67 per cent of the developable area of its residential projects were located in the Mumbai Metropolitan Region as on March 31, 2024. It also has land banks of 1,886 acres, that have been either purchased outright or acquired through development rights. It owns five land reserves in Surat, Shirol and Udaipur.
Losses down
In FY24, the company narrowed its loss to ₹100.7 crore from ₹200.7 crore year before while revenue from operations fell to ₹1,930 crore from ₹3,633 crore in the year-ago period.
The company will be repaying debt to the tune of ₹1,192.5 crore from the funds raised via the IPO. At the of June this year, it had dues worth ₹7,060 crore owing to banks and lending institutions.
The main promoters of the company are Mofatraj Munot and Parag Munot who together hold 35 per cent stake.