Kolte-Patil Developers Limited , a prominent real estate company, has announced several key decisions following its recent Board of Directors meeting. The board approved the audited financial results for the quarter and year ended March 31, 2023, and made significant proposals for the company's future financial strategies.

Dividend Announcement

The Board of Directors has recommended a final dividend of Rs 4.00 per equity share with a face value of Rs 10.00 each for the financial year 2022-23. This dividend proposal is subject to approval by the members at the upcoming 32nd Annual General Meeting (AGM).

Appointment of New Statutory Auditors

In a move to ensure continued financial oversight, the Board has appointed M/s. S R B C & Co LLP as the company's statutory auditors. Their tenure will commence from the 32nd AGM and continue until the conclusion of the 37th AGM in 2028.

Ambitious Fund Raising Plans

Kolte-Patil Developers has set its sights on a substantial fund-raising initiative. The Board has approved a proposal to raise funds up to Rs 800.00 crores through various financial instruments. These may include:

• Equity shares
• Debentures
• Bonds
• Global Depository Receipts (GDRs)
• American Depository Receipts (ADRs)

The company plans to raise these funds through multiple channels such as public issues, private placements, rights issues, or Qualified Institutional Placements (QIP).

Increased Borrowing and Mortgage Limits

In a strategic move to enhance financial flexibility, the Board has approved:

1. An increase in borrowing limits to Rs 1,500.00 crores
2. An increase in mortgage/charge limits to Rs 1,500.00 crores

Both these limits are in excess of the company's paid-up capital and free reserves.

Shareholder Approval Pending

It's important to note that all these proposals, except for the approval of financial results, require the green light from members at the forthcoming Annual General Meeting.

The company's decision to raise funds and increase borrowing limits suggests a proactive approach towards future growth and expansion. However, the specific plans for utilization of these funds have not been disclosed in the current announcement.

Investors and stakeholders will likely look forward to the upcoming AGM for more details on these strategic decisions and their potential impact on the company's future operations and financial health.

Kolte Patil Developers , a prominent real estate developer, has undergone a significant change in its ownership structure as BREP Asia III India Holding Co VII Pte. Ltd., a Blackstone-affiliated entity, substantially increased its stake in the company. The transaction, executed on August 11, marks a major shift in the company's control.

Key Details of the Acquisition

• BREP Asia III acquired 2,27,96,353 equity shares, representing a 25.71% stake in Kolte-Patil Developers.
• The acquisition was conducted off-market, in line with a share purchase agreement dated March 13.
• Following this transaction, BREP Asia III's total holding in Kolte-Patil Developers increased to 3,54,72,038 shares, constituting 40% of the company.

Impact on Ownership and Control

• Prior to this acquisition, BREP Asia III held 1,26,75,685 shares, equivalent to a 14.29% stake in the company.
• The Blackstone affiliate has now gained joint control alongside existing promoters and is classified as a promoter of Kolte-Patil Developers.
• This change has resulted in a significant shift in the promoter and promoter group shareholding, which has decreased from 59.5% to 33.8%.

Transaction Details

• The shares were acquired from various members of the promoter and promoter group, including:

Regulatory Compliance

• The transaction was conducted in accordance with SEBI regulations, including the Substantial Acquisition of Shares and Takeovers Regulations, 2011.
• A public announcement for an open offer to the public shareholders was made on March 13, in line with SEBI regulations.

Company Overview

Kolte-Patil Developers Limited remains listed on both the National Stock Exchange of India Limited and BSE Limited. The company's total equity share capital stands at INR 88,68,00,940, divided into 8,86,80,094 equity shares with a face value of INR 10 each.

This strategic move by the Blackstone affiliate represents a significant development in the Indian real estate sector, potentially bringing global expertise and resources to Kolte-Patil Developers' operations.

Recent Financial Update

Kolte-Patil Developers Limited recently submitted a monitoring agency report for the quarter ended June 30, regarding the utilization of proceeds from their preferential issue worth Rs 417.03 crore. Key points from the report include:

• CARE Ratings Limited, serving as the monitoring agency, reported no deviations from the stated objects of the issue.
• The funds were allocated for three purposes:
  1. Rs 104.00 crore for general corporate purposes
  2. Rs 265.00 crore for development of new real estate projects including land acquisition
  3. Rs 48.03 crore for payment of government premiums and purchase of floor space index
• During the quarter, no funds were utilized, and the entire amount remains invested in liquid mutual funds and money market funds with banks including Axis, ICICI Prudential, and Tata.
• The company has until December 23, 2026, to complete the utilization of these proceeds.
• All statutory approvals are pending and will be obtained in due course.

This update demonstrates Kolte-Patil Developers' commitment to transparency in its financial operations and adherence to regulatory requirements.