Kalpataru, promoted by Mofatraj P Munot & Parag M. Munot and part of Kalpataru Group, is an integrated real estate development company in India focused on the development of luxury, premium, and mid-income residential, commercial, retail, integrated townships, lifestyle gated communities, and redevelopment projects.

The company has capabilities and involved in all key activities associated with real estate development, including the identification and acquisition of land (or development rights thereto), planning, designing, execution, sales, and marketing of projects.

As of December 31, 2024, it had 485.38 acres of land in various stages of development, amounting to 48.97 msf of developable area. Of the 485.38 acres, ongoing projects, forthcoming projects and planned projects amounted to 260.48 acres, 101.84 acres and 123.06 acres, respectively, with a corresponding developable area of 24.83 msf, 16.33 msf and 7.81 msf, respectively. Of its development portfolio as of December 31, 2024, residential projects amounted to 46.72 msf of developable area and comprised 95.41% of the developable area.

It is a prominent real estate developer in the Mumbai Metropolitan Region (MMR) in Maharashtra and are present across all micro-markets in the MMR. As of December 31, 2024, it have 18 ongoing projects (17.36 msf of developable area or 69.94% of total ongoing), five forthcoming projects (15.43 msf or 94.45% of total forthcoming) and 3 planned projects (2.91 msf or 37.23% of total planned) in the MMR. Similarly it has 5 ongoing projects (5.81 msf or 23.54% of total ongoing) and two planned projects (4.90 msf or 62.77% of total planned) in Pune (Maharashtra). Both MMR and Pune represents 94.84% of the total developable area (46.45 msf) of the company’s total development portfolio.

While the MMR and Pune, Maharashtra remain and are expected to remain its primary focus, the company also intend to selectively pursue opportunities in other metropolitan cities and high-growth cities across India.

As of December 31, 2024, it have two ongoing projects in Hyderabad (Telangana) and Noida (Uttar Pradesh); one forthcoming Project in Nagpur (Maharashtra); and three pieces of land comprising Land Reserves in Surat (Gujarat); Nagpur(Maharashtra); and Udaipur (Rajasthan). As of December 31, 2024, it had five land reserves aggregating to 1,886.10 acres located at Surat (Gujarat); Nagpur (Maharashtra); Shirol (Maharashtra) and Udaipur (Rajasthan).

In addition to acquiring freehold and leasehold interests in land for development, it enter into redevelopment, JDA or JV projects with other landowners to develop their land. As of December 31, 2024, redevelopment/JDA/JV projects collectively comprised 18.09%, 2.18% and 5.19% of the total developable area of its ongoing projects, forthcoming projects and planned projects, respectively. Although redevelopment, JDA and JV projects comprise a relatively small proportion of its development portfolio in terms of developable area, it believe this asset-light approach may be a source of growth for its business in the future.

Unsold residential inventory as end of Dec 31, 2024 stood at 6.46 msf (including 0.10 msf of ready to move) with an estimated value of Rs 8248.61 crore.

The Issue, Objects of the Issue

The Offer comprises entirely of fresh issue of equity shares aggregating upto Rs 1590 crore.

Of the net proceeds from fresh issue the company propose to repay/pre-payment in full or part of certain borrowing availed by the company amounting Rs 333.258 crore and its subsidiaries amounting Rs 859.242 crore totalling Rs 1192.50 crore. And the balance is for general corporate purpose.

As of April 30, 2025, the company had a total borrowings of Rs 10186.622 crore.

Strength

Kalpataru is an established legacy brand and its association with trust, quality, and reliability driven by track record of delivering quality projects gives the ability to sell throughout the construction phase. Moreover strong brand also helps it to achieve price premium for its projects across micro markets as compared to the average pricing of the sub markets.

Prominent real estate company in the Mumbai Metropolitan Region in Maharashtra with a portfolio of projects diversified across different micro-markets and price points in the Mumbai Metropolitan Region and Pune, Maharashtra.

Strong project pipeline with visibility towards near term cash flows.

Cater to a wide spectrum of price points. Of the unsold residential units as end of Dec 2025, about 11.57% is ultraluxury, 20.91% is luxury, 59.45% is high-end and 8.06% is mid-end categories.

Proven end-to-end execution capabilities with continuous innovation and ability to deliver projects in a timely fashion.

Synergies from the Kalpataru Group’s expertise and experience in adjacent offerings such as EPC, civil infrastructure construction, and facility management, among others.

Leading real estate company in implementation of green and sustainable buildings

Weakness

Real estate business is capital intensive and requires significant expenditure for land acquisition and project development, long gestation in nature and prone to time and cost overruns etc..

MMR and Pune realty market accounts for 94.84% of the company’s real estate development projects and any regulatory/political changes or demand slowdown will hurt the performance of the company.

Not acquired the entirety of the land or rights required to develop two of its planned projects i.e., Kalpataru Platina and Kalpataru Espacio.

Statutory Auditors have included matters of emphasis and negative observations in their audit reports on r audited consolidated financial statements of the company for the nine months ended December 31, 2024 and the past three Financial Years.

Had net negative cash flows in the past i.e. 9mFY25 and FY24.

Have incurred penalties in relation to compliance with its debt financing arrangements in the past.

Exposed to the risks pertaining to land acquisition due to limited supply of land, increasing competition and applicable regulations especially in MMR and Pune.

Do not own the “Kalpataru” brand, got nonexclusive and non-transferable licence to use the brand from Kalpataru Business Solutions, one of the promoters.

Redevelopment projects are subject to risks involving existing tenants, occupants and applicable Government regulations which may affect project completion times and costs

Debt equity ratio stands at 3.5.

Valuation

Consolidated revenue for the fiscal ended March 2024 was down 47% to Rs 1929.98 crore and at operating level it was a loss of Rs 128.42 crore with OPM stand at negative 6.7% compared to negative 2.2% in corresponding previous period. The operating loss after minority interest was Rs 103.45 crore compared to a loss of RS 203.38 crore in the corresponding previous period.

For the nine month ended Dec 2024, the company reported a revenue of Rs 1624.74 crore and the operating profit stood at 77.72 crore with OPM stand at 4.8%. Eventually the net profit after MI was Rs 8.66 crore.

At upper price band of Rs 414, the P/BV works out to 2.7 times and it is against 4.4 times for Oberoi Realty, 2 times for Sunteck Realty, 7 times for Macrotech Developers, 2.4 times for Keystone, 4.1 times for Godrej Properties, 2.9 times for Mahindra Life, 4.9 times for DLF and 4.7 times for Prestige Estates.

EV/sales (of FY24 sales) works out to 9.7 times. In comparison it is 13.6 times for Oberoi Realty, 8 times for Sunteck Realty, 10.8 times for Macrotech Developers, 3.8 times for Keystone, 17.1 times for Godrej Properties, 24.5 times for Mahindra Life, 26.5 times for DLF and 11.6 times for Prestige Estates.