Real estate developer Kalpataru to raise Rs 1000 cr via IPO

The rising stock market has prompted Kalpataru, a leading Mumbai based real estate player to join the list of property developers cashing in with the trend. According to merchant banking sources the firm which is the flagship real estate company of the Kalpataru Group has already prepared its draft red herring prospectus with SEBI (Securities and Exchange Board of India), the market regulator. Kalpataru is offering Rs 1,008-crore in its initial public offer which is based on a 100% book building process. The company plans to raise Rs 1,008 crore through its IPO. According to company sources, it plans to raise funds to the tune of about Rs 200 crore as pre-IPO placement. As such some discounts on IPO issue price would be offered to retail investors along with their employees.

The entry of Kalpataru into the capital market for the purpose of raising money is the latest one from the real estate sector. Some other property developers which are in the process to enter the capital market are Lavasa Corporation (promoted by infra major HCC), Oberoi Realty and Sahara Prime City. The ones which have already entered the market are DB Realty and Godrej Properties. At the moment Kalpataru is developing premium residential, commercial, retail, integrated townships and redevelopment projects in Mumbai and Pune. The company has also undertaken projects in Hyderabad, Surat, Nagpur, Jaipur and Udaipur.