Shares of Mumbai-based real estate developer Kalpataru Ltd made a flat debut on the BSE and NSE on Tuesday, listing at Rs 414, the upper end of its IPO price band. However, the stock later gathered momentum, rising over 9% to Rs 453 on the BSE and Rs 452.80 on the NSE. The company commanded a market capitalisation of over Rs 9,121 crore in early trade.The Rs 1,590 crore IPO, entirely a fresh issue of 3.84 crore shares, saw moderate demand with an overall subscription of 2.31 times. Qualified Institutional Buyers (QIBs) led the interest, subscribing 3.12 times their allocated portion, while retail and non-institutional investor categories were subscribed 1.43 and 1.40 times respectively, reported ET. The IPO did not include any offer-for-sale component, and the proceeds will primarily be used to repay or prepay borrowings worth Rs 1,192.5 crore, with the rest allocated to general corporate purposes.Kalpataru’s listing followed a robust Rs 708 crore anchor book participation, which saw interest from marquee mutual funds and institutional investors. ICICI Securities acted as the sole book-running lead manager, while MUFG Intime India served as the registrar.Founded in 1988, Kalpataru Ltd is part of the Kalpataru Group and has developed a portfolio of over 70 completed and 40 ongoing projects across cities like Mumbai, Pune, Hyderabad, Bengaluru, and Indore. The company is primarily focused on residential, commercial, retail, and integrated township projects, and also undertakes redevelopment of housing societies.Despite the positive market debut, analysts caution on valuations. Based on the company’s trailing nine-month profit of Rs 5.5 crore in FY25, the post-issue price-to-earnings ratio stands at an eye-popping 1,160x. Kalpataru has reported losses in the past three fiscal years, including a Rs 229 crore loss in FY23, though the small profit in the nine-month period suggests a potential turnaround.While the IPO included a Rs 38 per share discount for employees, employee participation remained lower than expected.Given the modest grey market premium and aggressive pricing, analysts remain cautious. They suggest long-term investors monitor Kalpataru’s execution capabilities and leverage position, especially in the context of its significant presence in the Mumbai Metropolitan Region and plans for future redevelopment projects.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)