Kalpataru Ltd IPO

The company has incurred net losses in the past. Any losses in future periods could adversely affect its financial condition, results of operations and cash flows and the trading price of its Equity Shares.

As of December 31, 2024, 94.84% of its real estate development projects were located in and around the Mumbai Metropolitan Region and Pune and the company is exposed to risks originating from economic, regulatory, political and other changes in this region which could adversely affect its business, results of operations and financial condition.

The company has not acquired the entirety of the land or rights required to develop two of its Planned Projects, Kalpataru Platina and Kalpataru Espacio. In the event the company is unable to acquire all the land required, its may not be able to develop these projects as planned, or at all.

Its Statutory Auditors have included matters of emphasis and negative observations in their audit reports on its audited consolidated financial statements for the nine months ended December 31, 2024 and the past three Financial Years.

There are outstanding litigation proceedings involving the Company, Subsidiaries, Joint Ventures, Associate, Group Companies, Directors, Key Managerial Personnel, Senior Management and Promoters and an adverse outcome may adversely affect its reputation, business, financial condition, results of operations and cash flows.

As of December 31, 2024, 95.41% of the total Developable Area and 95.11% of its total Sales across the company Ongoing Projects, Forthcoming Projects and Planned Projects are attributable to residential projects. The company depends significantly on its residential development business which is subject to needs and preferences of its customers. The company failures to continually anticipate and respond to customer needs may affect its business and results of operations.

The company has had net negative cash flows in the past and any negative cash flows in the future could adversely affect its cash flow requirements, which may adversely affect its ability to operate the company business and implement its growth strategies.

Its Group Companies and certain Subsidiaries have incurred losses in the past. Sustained losses in the future by such Group Companies or Subsidiaries could require it to provide financial support, which could adversely affect its business, financial condition, results of operations and cash flows. received from one of its lenders, HDFC Bank Limited, is conditional on a part of the Net Proceeds being utilized towards repayment of Rs.5,000 million to HDFC Bank Limited.

The company has incurred penalties in relation to compliance with its debt financing arrangements in the past and its future inability to meet the company obligations under its debt financing arrangements could adversely affect its business, results of operations, financial condition, and cash flows. Further, the consent.

The company intend to utilize Rs.11,925.00 million out of the Net Proceeds of the Issue towards repayment/prepayment, in full or in part, of certain borrowings availed by the Company and its Subsidiaries. Any default by such Subsidiaries in relation to their outstanding borrowings or adverse developments in relation to their credit ratings could adversely affect its business, financial condition and results of operations.