Kolte-Patil Developers Reports Zero Utilization of Rs. 417.03 Crore Preferential Issue Proceeds

Kolte Patil Developers Limited, a prominent real estate developer, has reported that the proceeds from its Rs. 417.03 crore preferential equity issue remain entirely unutilized as of September 30, 2025. This information comes from the company's latest monitoring agency report, which provides insights into the allocation and usage of the funds raised.

Key Highlights

Unutilized Funds: The entire Rs. 417.03 crore raised through the preferential issue remains unused.
Temporary Deployment: The funds are currently deployed in mutual funds and bank accounts.
Monitoring Agency: CARE Ratings Limited, serving as the monitoring agency, found no deviation from the stated objectives.
Planned Utilization: The proceeds are earmarked for general corporate purposes, real estate project development, and government premium payments.
Completion Target: The company aims to utilize the funds by December 23, 2026.

Breakdown of Fund Allocation

Purpose	Amount (Rs. Crore)
General Corporate Purposes	104.00
Development of new Real Estate Projects	265.00
Payment of government premiums and FSI purchase	48.03
Total	417.03

Current Fund Deployment

The report indicates that the funds are temporarily invested as follows:

Investment Type	Amount (Rs. Crore)	Market Value (as of Sept 30, 2025)
Mutual Funds	414.42	421.27
Bank Accounts	2.61	2.61
Total	417.03	423.88

Company's Statement

Kolte Patil Developers has stated that the funds will be utilized in accordance with the objectives outlined in the offer document. The company plans to use the proceeds for general corporate purposes, development of new real estate projects (including land acquisition), and payment of government premiums and floor space index (FSI) purchases.

Monitoring Agency's Observations

CARE Ratings Limited, in its role as the monitoring agency, has reported:

No deviation from the stated objects of the issue.
No changes in the means of finance for the disclosed objects.
No major deviations observed compared to earlier monitoring reports.

The monitoring agency also noted that there are no unfavorable events affecting the viability of the stated objectives.

Investor Implications

While the non-utilization of funds might raise questions about the company's immediate growth plans, it's important to note that the company has until December 2026 to utilize these funds. Investors should monitor future reports for updates on fund utilization and project developments.

The temporary deployment of funds in low-risk instruments like mutual funds and bank deposits aligns with the company's commitment to preserving capital while awaiting deployment in planned projects.

As Kolte Patil Developers navigates the dynamic real estate market, the judicious use of these funds will be crucial in determining the company's growth trajectory and shareholder value creation in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.32%	-1.18%	-0.23%	+14.29%	+16.92%	+140.30%

Kolte-Patil Developers Limited , a prominent real estate developer, has announced its financial results for the second quarter of fiscal year 2026, showcasing growth in key operational metrics.

Operational Highlights

The company reported pre-sales value of Rs. 670.00 crore for Q2 FY26, marking a 9% increase quarter-on-quarter. Collections also saw an uptick, reaching Rs. 596.00 crore, up 8% from the previous quarter. Notably, the average price realization improved by 7% to Rs. 7,823.00 per sq. ft.

Financial Performance

For the quarter, Kolte-Patil's total income stood at Rs. 162.00 crore.

Strategic Developments

Blackstone-affiliated funds completed their stake acquisition, now holding a 40% stake in Kolte-Patil Developers.

Project Expansion

Kolte-Patil acquired 7.5 acres of land in Bhugaon, Pune in October 2025. This new acquisition is estimated to yield a saleable area of 1.9 million sq. ft. with a gross development value of Rs. 1,400.00 crore.

H1 FY26 Performance

For the first half of FY26, Kolte-Patil achieved:

Pre-sales of Rs. 1,286.00 crore
Sales volume of 1.70 million sq. ft.
Collections totaling Rs. 1,146.00 crore

Portfolio Overview

The company's total portfolio stands at 37 million sq. ft., encompassing unsold inventory, development pipeline, and land bank.

Key Project Performance

Life Republic township contributed significantly with sales of 0.51 million sq. ft. during the quarter.

New Launch

Kolte-Patil expanded its presence in the Mumbai Metropolitan Region with the launch of the Serenova project in the Versova market.

The results reflect Kolte-Patil Developers' strategic initiatives in the real estate market. With a strong project pipeline, improved realizations, and strategic partnerships, the company appears well-positioned in the Indian real estate sector.