Wed Jun 25 04:30:00 UTC 2025: **Kalpataru’s ₹1,590 Crore IPO Sees Mixed Response on Day Two**

Mumbai – Kalpataru Limited’s initial public offering (IPO), which opened on Tuesday, June 24, has seen a subscription rate of just over 0.12 times by the end of its second day. The ₹1,590 crore IPO, consisting entirely of a fresh issue of equity shares, aims to raise funds for debt repayment and general corporate purposes.

The IPO price band is set between ₹387 and ₹414 per share, with a face value of ₹10. The offering reserves 75% of shares for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors. Employees are offered a discount of ₹38 per share.

As of the second day, the retail portion has been subscribed 0.46 times, while the NII portion is subscribed 0.13 times. On the first day, retail segment was booked 0.33 times, NII was subscribed 0.10 times and the QIB segment remained unsubscribed.

Market analysts offer differing opinions on the IPO. Choice Broking recommends subscribing “for the long term,” citing Kalpataru’s strong brand and discounted EV/Sales multiple compared to peers. However, they also acknowledge concerns regarding the company’s high debt. Fynocrat Technologies expresses reservations, citing limited visibility on sustained profitability and weaker return ratios compared to competitors like Oberoi Realty and Godrej Properties.

The Grey Market Premium (GMP) for Kalpataru shares is currently at +₹5, indicating a potential listing price of around ₹419, slightly above the upper IPO price band. However, GMP trends have been volatile in recent days.

The IPO is scheduled to close on Thursday, June 26. Allotment is expected to be finalized on June 27, with refunds starting on June 30 and listing on the BSE and NSE anticipated for July 1. ICICI Securities Limited, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are the book running lead managers for the IPO, while MUFG Intime India Private Limited is the registrar.

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