Struggles and Ambitions: Kalpataru Ltd's IPO Plans Amid Financial Setbacks

Real estate firm Kalpataru Ltd reported a net loss of Rs 100.74 crore last fiscal, with plans to launch an IPO to raise Rs 1,590 crore for debt repayment. The company's income fell sharply, and most of its projects are residential, located primarily in Maharashtra. Kalpataru Group has a 55-year legacy.

Real estate firm Kalpataru Ltd, which plans to launch its maiden public issue, reported a consolidated net loss of Rs 100.74 crore in the last financial year, driven by lower income.

The net loss stood at Rs 200.73 crore in the preceding 2022-23 fiscal year. Last week, the Mumbai-based company filed a preliminary document with capital markets regulator Sebi to launch its initial public offering (IPO), aiming to raise up to Rs 1,590 crore to primarily reduce debt.

The IPO involves a fresh issue of shares, each valued at Rs 10, aggregating up to Rs 1,590 crore, with Rs 1,192.5 crore earmarked for the repayment/prepayment of debt. The Draft Red Herring Prospectus (DRHP) indicates that the company's total income declined to Rs 2,029.93 crore from Rs 3,716.61 crore over the previous fiscal year. The majority of Kalpataru Ltd's projects are residential, primarily located in the Mumbai Metropolitan Region and Pune.

(With inputs from agencies.)