Kalpataru Limited has officially withdrawn its proposed demerger scheme, which was initially approved by the Board of Directors on June 27, 2024. The scheme aimed to transfer the Project Yoganand, located in Borivali, Mumbai, from Kalpataru Limited to its wholly-owned subsidiary, Kalpataru Residency Private Limited. The demerger was intended to create a Special Purpose Vehicle (SPV) for better funding opportunities from prospective investors and lenders. The appointed date for the demerger was set for April 1, 2024, or any date approved by the National Company Law Tribunal.

The decision to withdraw the scheme comes after the completion of an Initial Public Offering (IPO), which significantly improved the company's cash flows. Following this development, lenders associated with the Project no longer insisted on the demerger, prompting Kalpataru's Board to reconsider the necessity of the scheme. During a meeting held on November 10, 2025, the Board, upon the Audit Committee's recommendation, approved the withdrawal of the demerger proposal, citing that it would not have any financial impact on either Kalpataru Limited or Kalpataru Residency Private Limited.

This withdrawal marks a significant turning point for Kalpataru Limited, enabling the company to maintain its operational structure without the complexities associated with the demerger. The company's management has reassured stakeholders that the decision aligns with their strategic goals, particularly in light of the strengthened financial position following the IPO. As the market awaits further updates, Kalpataru Limited continues to focus on its core operations and projects, ensuring stability and growth in a competitive environment.