The board of directors of Kolte-Patil has approved a preferential allotment of shares to Blackstone entity BREP Asia III India Holding Co VII, raising approximately Rs 417 crore from the global investment firm.
Under the preferential issue, Kolte-Patil will allot over 1.26 crore equity shares at Rs 329 per share to BREP Asia III, giving the investor a 14.3% stake in the company post-issuance, the Pune-based developer said in a regulatory filing.
Additionally, BREP Asia III will acquire a 25.7% stake from existing promoters for nearly Rs 749 crore, increasing its total shareholding to 40% with Rs 1,167 crore. The deal is subject to regulatory approvals, including clearance from the Competition Commission of India (CCI) and stock exchanges.
BREP Asia III is expected to gain joint control of Kolte-Patil alongside the promoter group, significantly influencing the company’s strategic direction.
The investment triggers an open offer requirement under SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, 2011. BREP Asia III will make an open offer to acquire an additional 26% of Kolte-Patil’s equity from public shareholders, further consolidating its position in the company.Following this transaction, BREP Asia III, along with its affiliates Blackstone Real Estate Partners Asia III LP and Blackstone Real Estate Partners (Offshore) X.TE-F (AIV) LP, has launched a mandatory open offer to acquire an additional 26% stake in Kolte-Patil from public shareholders.The offer price has been set at Rs 329 per share, with an additional investment value of Rs 758.57 crore.
This open offer, triggered under SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, 2011, will allow public shareholders to tender up to 2.30 crore shares. If fully subscribed, this would increase BREP Asia III’s total holding to 66% of Kolte-Patil’s emerging voting capital.
As part of the governance changes, Kolte-Patil will amend its Articles of Association to reflect the terms of the shareholders’ agreement. The revised structure will grant BREP Asia III certain board nomination rights and veto powers over critical corporate decisions, including fundraising, mergers, and auditor appointments.
Kolte-Patil’s board has scheduled an Extraordinary General Meeting (EGM) on April 10, 2025, to seek shareholder approval for the preferential allotment and related governance changes.
The infusion of capital is expected to strengthen the company’s financial position and fuel its expansion in the residential and commercial real estate markets.
Along with this investment, Kolte-Patil has executed a Share Subscription Agreement (SSA), a Share Purchase Agreement (SPA), and a Shareholders’ Agreement (SHA) with BREP Asia III and its existing promoters. These agreements outline the rights and obligations of the new investor and existing promoters in managing the company.
