The Initial Public Offering (IPO) of Kalpataru Projects International Ltd (formerly Kalpataru Power Transmission Ltd), one of India’s leading EPC (Engineering, Procurement and Construction) companies, has generated significant investor interest, with the spotlight now shifting to the listing day. The stock is scheduled to list on the NSE and BSE on July 2, 2025, and analysts are closely watching the Grey Market Premium (GMP) to gauge how shares might debut.
Key Highlights
✅ IPO size: ₹1,500 crore (Fresh issue: ₹900 crore, OFS: ₹600 crore)
✅ Price band: ₹340–₹355 per share
✅ Subscription: Oversubscribed 14.7 times overall
✅ GMP (Grey Market Premium): ₹76 (as of June 30, 2025)
✅ Expected listing price: ₹431 (20–22% premium)
✅ Listing date: July 2, 2025 (Tuesday)
IPO Subscription Details
The IPO opened for subscription between June 25 and June 27, receiving a robust response across investor categories:
| Investor Category | Subscription (x) |
|---|---|
| Qualified Institutional Buyers (QIB) | 18.3x |
| Non-Institutional Investors (NII) | 11.2x |
| Retail Individual Investors (RII) | 9.6x |
| Employees | 2.1x |
| Overall | 14.7x |
This strong demand is being attributed to the company’s robust order book, global presence, and improving profitability metrics.
About Kalpataru Projects International
Kalpataru Projects is a diversified EPC player with presence in:
- Power transmission and distribution
- Railways
- Oil & gas pipelines
- Civil construction (residential and commercial)
- Water infrastructure
The company has completed projects across more than 60 countries and currently boasts an order book exceeding ₹45,000 crore.
Financial Snapshot
| Metric | FY25 (Estimated) | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹13,740 crore | ₹12,260 crore | ₹11,415 crore |
| EBITDA | ₹1,420 crore | ₹1,280 crore | ₹1,075 crore |
| EBITDA Margin | 10.3% | 10.4% | 9.4% |
| Net Profit | ₹710 crore | ₹622 crore | ₹541 crore |
| ROCE | 14.7% | 13.4% | 12.1% |
(Source: RHP, Analyst Estimates)
IPO Details and Key Metrics
| Parameter | Details |
|---|---|
| IPO Price Band | ₹340 – ₹355 |
| Issue Size | ₹1,500 crore |
| Fresh Issue | ₹900 crore |
| OFS | ₹600 crore |
| Face Value | ₹2 per share |
| Lot Size | 42 shares |
| Minimum Investment (Retail) | ₹14,910 |
| Listing Date | July 2, 2025 |
| Book Running Lead Managers | Kotak Mahindra Capital, JM Financial, ICICI Securities |
| Registrar | Link Intime India Pvt Ltd |
Use Of Proceeds
The company plans to utilise the fresh issue proceeds primarily for:
- Working capital requirements
- Repayment/prepayment of borrowings
- General corporate purposes
This is expected to strengthen the balance sheet and help execute the large infrastructure order book more efficiently.
GMP Trend – What The Grey Market Is Saying
Grey Market Premium (GMP) for Kalpataru Projects IPO has remained consistently strong, signaling a premium listing. As of June 30, 2025, the GMP stood at ₹76, indicating:
| IPO Price (Upper Band) | ₹355 |
|---|---|
| GMP | ₹76 |
| Expected Listing Price | ₹431 |
| Expected Listing Gain | ~21.4% |
GMP is an unofficial indicator, but often provides early sentiment cues for listing day performance.
Sector Outlook Supports Valuation
The infrastructure EPC space is witnessing tailwinds:
✅ Government push on infrastructure: Railways, power grid expansion, smart cities
✅ PLI-linked capex across transmission and renewable sectors
✅ Improved project awarding and execution cycles post-election clarity
Peers Comparison
| Company | Revenue (₹ Cr) | PAT Margin (%) | PE Ratio (FY25E) |
|---|---|---|---|
| Kalpataru Projects (IPO) | 13,740 | 5.1% | 20.2x |
| KEC International | 17,050 | 3.8% | 21.9x |
| Larsen & Toubro (EPC arm) | 67,300 | 6.5% | 24.4x |
| IRCON International | 10,200 | 7.8% | 18.7x |
Kalpataru’s IPO valuation appears fairly priced relative to peers with better margin outlook and strong global exposure.
Expert Commentary
Jyoti Roy, DVP Equity Strategist, Angel One:
“Kalpataru’s diversified portfolio and large order book make it an attractive long-term EPC play. The healthy GMP reflects broad investor interest and potential for listing gains.”
Rajesh Palviya, Head Technicals, Axis Securities:
“Technically, listing above ₹420 would signal strength. If sustained, the stock could head towards ₹450 in the short term, post-listing consolidation.”
Risks To Consider
| Risk Factor | Impact |
|---|---|
| Delay in project execution | Affects working capital cycle and profitability |
| Commodity price volatility | Impacts margins on fixed-price EPC contracts |
| Currency fluctuation | Global projects in Africa, SAARC, and Latin America are FX-sensitive |
| Regulatory risk | Approvals for cross-border power and infra projects can face delays |
Post-Listing Outlook: What Should Investors Expect?
Short-Term
- Strong listing likely due to high GMP and oversubscription
- Watch for profit booking if stock lists above ₹425–₹430
- Retail investors should hold for at least 1-2 quarters for post-listing stability
Long-Term
- Well-positioned for India’s infra-led GDP push
- High RoCE business with global diversification
- Management credibility and execution track record support sustainable growth
Conclusion
Kalpataru Projects IPO listing on July 2 is expected to debut with a 20–22% premium, driven by solid subscription demand, strong financials, sector tailwinds, and a robust grey market premium. While listing gains look probable, investors with long-term infrastructure growth perspectives could benefit from staying invested as the company executes its mega order pipeline in the coming years.
Disclaimer
The information in this article is based on publicly available data, RHP filings, grey market trends, and broker research as of June 30, 2025. Market conditions can vary, and investors are advised to consult SEBI-registered financial advisors before making any investment decisions.
