Kalpataru Projects IPO Subscribed 2.26 Times on Day 3

Mumbai, June 26, 2025 — The Initial Public Offering (IPO) of Kalpataru Projects International Limited (KPIL) garnered robust investor interest, receiving bids 2.26 times the shares on offer by the close of Day 3 on June 26. The strong subscription reflects market confidence in the engineering, procurement, and construction (EPC) player’s business fundamentals, backed by its diversified global operations and proven track record in delivering large-scale infrastructure projects.

Breakdown of Subscriptions

According to data available from the National Stock Exchange (NSE), the Kalpataru IPO saw an overall subscription of 2.26 times, with retail investors showing enthusiastic participation. Here's a category-wise breakdown:

• Qualified Institutional Buyers (QIBs): Subscribed 3.89 times

• Non-Institutional Investors (NIIs): Subscribed 1.78 times

• Retail Individual Investors (RIIs): Subscribed 1.12 times

• Employees and Shareholders: Fully subscribed within the first two days

The IPO received bids for 5.89 crore shares as against the 2.61 crore shares on offer, excluding the anchor book, which was already fully subscribed prior to the opening of the public issue.

IPO Details and Objectives

Kalpataru Projects International offered shares in a price band of ₹207–₹215 per equity share, with a minimum lot size of 69 shares. The IPO consisted of a fresh issue worth ₹475 crore and an offer for sale (OFS) of ₹275 crore by existing shareholders, aggregating the issue size to ₹750 crore.

The net proceeds from the fresh issue will be primarily utilized for:

• Working capital requirements of domestic and international projects

• Debt repayment to strengthen the balance sheet

• General corporate purposes

Grey Market Premium (GMP) Trends

As of Thursday evening, market sources tracking grey market movements report that the GMP of Kalpataru Projects IPO stood at ₹48–₹52 per share. This suggests a listing premium of nearly 22–24% over the upper price band of ₹215, indicating strong listing day expectations.

“The GMP has been steadily rising over the past three days, reflecting optimism among investors and traders. A ₹50+ premium signals potential listing gains in the range of ₹265–₹270,” said Vinit Parmar, an independent IPO analyst based in Mumbai.

Anchor Investors Show Early Confidence

Prior to the IPO opening, Kalpataru Projects raised ₹225 crore from anchor investors. The anchor book witnessed participation from marquee domestic and foreign institutional investors, including SBI Mutual Fund, ICICI Prudential, HDFC Life Insurance, and HSBC Global.

This early interest from institutional investors laid the groundwork for a strong showing in the QIB and NII categories during the main bidding window.

Strong Industry Fundamentals

Kalpataru Projects International, formerly known as Kalpataru Power Transmission, is a globally diversified EPC company with a presence in over 65 countries. Its order book stands at over ₹40,000 crore, spanning transmission & distribution, railways, oil & gas pipelines, and civil infrastructure.

The infrastructure boom, particularly in clean energy and connectivity projects in India and the Middle East, has positioned EPC firms like KPIL to capitalize on upcoming opportunities.

“KPIL’s global reach and sectoral diversification mitigate concentration risks. The company's prudent financial management and healthy return ratios make it a fundamentally sound IPO bet,” noted Ravi Menon, equity strategist at Geojit Financial Services.

Market Context and Sector Sentiment

The IPO launch coincided with broader bullish sentiment in the Indian equity markets. The Nifty Infrastructure Index has gained nearly 4.8% over the past month, driven by sustained capital expenditure by both public and private sector entities.

Recent successful listings such as GPT Infraprojects and Power Mech Projects—both from the EPC and infrastructure segments—have delivered handsome returns, encouraging further investor participation in similar offerings.

“The investor appetite for infrastructure plays remains high, especially in EPCs with global exposure and execution capabilities. Kalpataru fits right into that narrative,” said Anjali Shah, Head of Research at Prabhudas Lilladher.

Investor Outlook: Should You Buy at Listing?

Analysts suggest that while the IPO has delivered strong subscription numbers and a healthy GMP, the decision to invest post-listing should be based on one's investment horizon and risk appetite.

“For listing gains, the sentiment appears quite favorable. For long-term investors, Kalpataru’s geographical spread, robust order book, and track record of timely project execution make it a worthy addition to a diversified infrastructure portfolio,” said Shah.

However, some caution that the rising competition in the EPC space and currency fluctuation risks (due to international operations) are factors to watch in the medium term.

Next Steps

The basis of allotment is expected to be finalized by July 1, with refunds (if any) initiated from July 2. Equity shares are likely to be credited to demat accounts by July 3, and the listing is tentatively scheduled for July 4 on both BSE and NSE.