Kalpataru reduces the defeat: Kalpataru Ltd, a real estate company preparing for its initial public offering (IPO), reported a consolidated net loss of Rs 100.74 crore for the last fiscal year. This marks a reduction from the loss of Rs 200.73 crore reported in the previous fiscal year. The company has filed a preliminary document with the Securities and Exchange Board of India (Sebi) for its IPO, which seeks to raise up to Rs 1,590 crore, primarily to address its debt.
IPO allocation of funds
He IPO The deal will involve a fresh issue of shares with a face value of Rs 10 each, totalling up to Rs 1,590 crore. Of this, Rs 1,192.5 crore will be used for repayment or prepayment of debt. Kalpataru Ltd’s total income declined to Rs 2,029.93 crore in the last fiscal year, from Rs 3,716.61 crore in the financial year 2022-23, as highlighted in the Draft Red Herring Prospectus (DRHP) filed with Sebi. The company, involved in all stages of real estate development, is managing 40 projects across 49.77 million sq ft, with 25 projects covering 22 million sq ft currently underway. As of March 31, 2024, a major portion of the company’s development and sales, 95.49 percent and 97.39 percent, respectively, is in residential projects. Kalpataru’s projects are primarily located in the Mumbai Metropolitan Region (MMR) and Pune, with additional projects in Hyderabad and Noida. The company also owns land in Surat, Nagpur and Udaipur.
Impact of revenue recognition
The company attributes its financial losses in recent years to its revenue recognition practices, which are dependent on the fulfilment of performance obligations under contracts with customers. Revenue is recognised when control of the assets is transferred, while related expenses are recorded in the year incurred. Kalpataru Ltd is part of the Kalpataru Group, established in 1969 by Mofatraj P Munot. Other entities in the group include Kalpataru Projects International Ltd, Property Solutions (India) and Shree Shubham Logistics Ltd, with operations spanning sectors such as power transmission, oil and gas, railways, civil infrastructure, warehousing, logistics and facility management. Kalpataru Projects International Ltd is listed on the Indian Stock Exchange. NSE and BSE.(With PTI inputs)
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