Kalpataru IPO listing date in focus. Here’s what GMP signals about debut of shares

Strong Buzz Around Kalpataru Projects’ Market Debut

With the listing date of Kalpataru Projects International Limited (KPIL) fast approaching, investor enthusiasm is surging across the primary market. KPIL’s IPO, which concluded with a healthy subscription, is now in focus for its expected listing on Tuesday, July 2, 2025, on both the NSE and BSE. The Grey Market Premium (GMP) — a key unofficial indicator of expected listing performance — has added to investor optimism.

The Kalpataru IPO, valued at ₹1,200 crore, was subscribed 7.6 times overall, with the Qualified Institutional Buyers (QIBs) portion leading at 11.4 times. Retail and Non-Institutional Investors (NIIs) also showed robust interest, subscribing their quotas by 5.3x and 6.1x respectively.

GMP Points to a Premium Listing

As of Monday, market observers noted that Kalpataru Projects’ GMP was hovering around ₹140–₹145 per share, over and above the upper price band of ₹385. This implies a potential listing price of around ₹525–₹530, marking a premium of nearly 37%. While the grey market is unofficial and speculative, it often provides early insight into market sentiment.

Abhishek Chauhan, Senior Analyst at Swastika Investmart, noted,

“The strong grey market premium signals confidence in Kalpataru’s business fundamentals and long-term growth potential. Barring a major market correction, a strong listing seems likely.”

Business Model and Fundamentals Back the Enthusiasm

Kalpataru Projects is one of India’s leading engineering, procurement, and construction (EPC) companies, with operations spanning power transmission, railways, and water infrastructure. The company has a presence in over 60 countries and boasts an order book exceeding ₹35,000 crore.

The IPO proceeds will be primarily used to reduce debt, fund working capital needs, and for general corporate purposes. This strategic capital infusion is expected to improve the company’s financial leverage and boost its execution capability in international projects.

According to Emkay Global Financial Services,

“Kalpataru’s international diversification, combined with strong execution in domestic projects, gives it a competitive edge. The robust order book provides multi-year revenue visibility.”

Sector Tailwinds Add to Listing Appeal

The infrastructure and EPC sector in India is receiving significant attention amid the government’s push for capital expenditure and infrastructure modernization. Budget 2025 reinforced this narrative, allocating a record ₹11 lakh crore toward infra spending.

This backdrop enhances the investment rationale for players like Kalpataru, who are directly positioned to benefit from large-scale public and private sector projects.

Nidhi Desai, an infrastructure fund manager at a Mumbai-based investment firm, shared,

“Kalpataru has both global credentials and domestic reach. This, combined with improving margins and decreasing debt, could make it a solid mid-cap play post-listing.”

Risks to Watch Despite Optimism

While the GMP and fundamentals point to a positive debut, analysts warn of potential risks. These include:

• Execution challenges in international markets.

• Foreign exchange fluctuations, given the overseas exposure.

• High working capital requirements, typical for EPC businesses.

Market volatility in the run-up to the Union Budget and any global macroeconomic disruption could also impact listing-day sentiment.

What Should Investors Do?

Investors who were allotted shares through the IPO are expected to see healthy gains if the GMP translates into reality. For those who missed the IPO, analysts suggest watching the listing price closely and waiting for a consolidation phase before entering.

“Listing euphoria sometimes leads to overvaluation. Investors should look at quarterly results post-listing to gauge earnings delivery,” advised Ravi Khanna, Director at AlphaEdge Capital.

Final Word

Kalpataru Projects’ IPO debut is among the most anticipated listings of the current quarter, driven by sector strength, a global footprint, and positive market sentiment. With the GMP pointing toward a stellar listing, all eyes will be on Tuesday morning when KPIL makes its formal debut on the Indian bourses.