Under the agreement, Blackstone will pick up the said stake through a preferential issue of 1.26 crore shares at Rs 329 per share, totaling Rs 417 crore.
Additionally, Blackstone will further execute a share purchase agreement (SPA) of 25.7% of the company’s shares from the existing promoters, taking its total stake to 40%. This will lead to a mandatory open offer and the investment firm made it for further 26%
Under the SPA, Blackstone will be granted certain governance rights, including the ability to appoint directors and veto power on key decisions. The existing promoters will retain some control, with two board seats compared to Blackstone’s three.
Post the transaction, Blackstone will be classified as a promoter and jointly control the company.
Kolte-Patil Developers is known for its residential and commercial projects in Pune and Bengaluru. The company has a strong reputation for quality construction and timely delivery.Blackstone, one of the world’s largest private equity firms, has been actively investing in India’s real estate market, with significant stakes in companies like Embassy Office Parks and Nexus Malls.This investment in Kolte-Patil aligns with Blackstone’s strategy to expand its footprint in India’s growing real estate sector.
This partnership is expected to bring fresh capital and global expertise to Kolte-Patil, enabling it to accelerate its growth plans. For Blackstone, the investment adds another high-quality asset to its Indian real estate portfolio, reinforcing its position as a key player in the market.
Kotle-Patil will hold an Extraordinary General Meeting (EGM) on April 10 for getting approval from the members of the company.
