Kolte-Patil Developers Limited announced that its Board of Directors has approved a scheme of amalgamation involving two wholly-owned subsidiaries. The meeting, held on May 22, 2026, sanctioned the merger of Kolte-Patil Lifespaces Private Limited and Kolte-Patil Smart Spaces Private Limited with the company under Sections 230 to 232 of the Companies Act, 2013.

The proposed merger is subject to necessary statutory and regulatory approvals, as well as the consent of members and creditors of the transferor and transferee companies. Both transferor companies are engaged in real estate development, while the transferee company is involved in the construction and development of residential and commercial complexes and IT Parks.

Rationale for the Merger

The Board outlined several strategic reasons for the amalgamation. The merger is expected to lead to more efficient utilization of resources and cash flows. It aims to generate synergies, result in cost savings, and increase the net worth of the transferee company. The move is intended to create a stronger base for future growth and improve the competitive position and flexibility of kolte patil developers .

Furthermore, the integration of business strategies is anticipated to enhance financial strength and consequently increase shareholder value. The amalgamation will also improve organizational capability through the pooling of human capital with diverse skills and experience.

Financial and Shareholding Details

The turnover of Kolte-Patil Developers Limited on a standalone basis for the quarter and year ended March 31, 2026, stood at ₹23,634 lakh and ₹65,834 lakh, respectively. In contrast, the turnover for both transferor companies was nil for the same periods.

As the transferor companies are wholly-owned subsidiaries, no new shares will be issued by the transferee company to their shareholders. All shares held by the transferee company in the transferor entities will stand cancelled upon the scheme becoming effective. Consequently, there will be no change in the shareholding pattern of the listed entity.

Key Merger Details

Kolte Patil Developers has received the Monitoring Agency Report from CARE Ratings Limited for the quarter ended March 31, 2026, pertaining to the utilisation of proceeds from its preferential issue of equity shares aggregating to Rs. 417.03 crore. The report, submitted on May 08, 2026, confirms that funds utilised during the quarter were in accordance with the disclosures made in the offer document, with no deviations reported.

Issue Overview

The preferential issue, which closed on June 23, 2025, was structured to fund three specific objects under the placement document. The issue size stood at Rs. 417.03 crore, with all three objects carrying a completion date of December 23, 2026, and currently classified as ongoing.

Utilisation of Proceeds — Q4FY26

As at the end of Q4FY26, a cumulative total of Rs. 104.59 crore has been utilised across the three stated objects, leaving Rs. 312.44 crore unutilised. During the quarter, Rs. 40.11 crore was deployed. The following table presents a detailed breakdown of progress against each object:

Under General Corporate Purposes, Rs. 24.93 crore was utilised during Q4FY26 towards payment of advance tax. For the FSI-related object, Rs. 15.18 crore was deployed towards acquiring Transferable Development Rights (TDR) and related Tax Deducted at Source (TDS) payments. No utilisation was recorded under the real estate development object during the quarter.

Deployment of Unutilised Proceeds

The unutilised amount of Rs. 312.44 crore has been deployed in low-risk instruments, comprising debt mutual funds and balances held in Axis Bank monitoring accounts, consistent with the company's stated policy of investing pending utilisation only in low-risk instruments such as debt mutual funds or term deposits with scheduled commercial banks.

Compliance and Verification

The Monitoring Agency confirmed that all utilisation details were verified through CA certificates issued by M/s. S P C M & Associates (Peer Reviewed Chartered Accountant Firm) vide certificate dated April 28, 2026, along with management certificates, bank statements, mutual fund statements, TDR agreements, and tax challans. The report notes no major deviation over previous monitoring agency reports, and no changes to the means of finance for the disclosed objects were observed.

The report was signed by Amit Chanchalani, Associate Director at CARE Ratings Limited, and submitted to the Board of Directors of Kolte Patil Developers. The filing to stock exchanges was made by Vinod Patil, Company Secretary and Compliance Officer, on May 08, 2026, pursuant to Regulation 41(4) of SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2018, and Regulation 32(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.