The initial public offering (IPO) of Kalpatru has opened for subscription on Tuesday, June 24. The mainboard segment IPO will close on Thursday, June 26. The price band for the issue has been set between ₹387 and ₹414 per equity share, each having a face value of ₹10. The issue consists of equity shares amounting to ₹1,590 crore, with no Offer for Sale (OFS) component included.

Kalpatru intends to use the net proceeds from the issuance for multiple purposes, including the full or partial repayment or prepayment of specific loans availed by itself and its subsidiaries, as well as for general corporate purposes.

The company has reserved 75 per cent of the shares in its public offering for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and the remaining 10 per cent for retail investors. Qualified employees applying under the employee reservation category are eligible for a discount of ₹38 per equity share.

Kalpataru IPO Day 1 Live: Subscription Status

Subscription for the public issue will open at 10:00 IST during Tuesday's deals.

Kalpataru IPO Day 1 Live: Review

Brokerage firm Choice Broking has given ‘subscribe for long-term’ rating to Kalpataru IPO. “ At the higher price range, Kalpataru is seeking an EV/Sales multiple of 9.3×, which still trades at a discount compared to peer averages of around 12.5×. The company’s strong brand allows it to command a premium pricing strategy, reflecting solid pricing power. However, a high debt load introduces financial prudence concerns. Thus, we recommend a “Subscribe for long Term” rating for this issue.”

Whereas, Gaurav Goel, Founder & Director at Fynocrat Technologies believes that given Kalpataru’s current financial profile and limited visibility on sustained profitability, the IPO does not offer a compelling risk-reward trade-off.