Blackstone to acquire up to a 66 per cent stake in Pune based Real Estate Company, committing approximately Rs 1,800 crore!

With a PE ratio of 173x, the company trades at a premium compared to the industry PE of 27.9x.  

Kolte-Patil Developers Limited has announced a significant strategic partnership with global investment firm Blackstone to bolster its presence in the Indian residential real estate market. Blackstone will acquire up to a 66 per cent stake in Kolte-Patil, committing approximately Rs 1,800 crore. This includes an allotment of 1.27 crore equity shares, raising Rs 417.03 crore, and an open offer to acquire additional shares from the public, aiming for a 40 per cent ownership. This collaboration is set to leverage Kolte-Patil's three-decade legacy and Blackstone's global investment expertise to drive innovation and expansion. Rajesh Patil, Chairman of Kolte-Patil, emphasized the partnership's potential to unlock value and transform the company. Asheesh Mohta from Blackstone highlighted the growing demand for high-quality homes in India, which is driven by urbanization and a rising middle class. With a debt-free balance sheet and a shared vision for sustainable growth, Kolte-Patil and Blackstone are well-positioned to strengthen their foothold in the dynamic real estate sector. In this strategic partnership, JM Financials is acting as a manager of this open offer, according to the filings.

Kolte-Patil Developers Ltd., established in 1991, is a prominent player in the Indian real estate sector, particularly in Pune, with expanding operations in Mumbai and Bengaluru. The company is known for its high-quality standards, unique design, and timely project delivery, marketing its projects under the 'Kolte-Patil' and '24K' brands. With a current stock price of Rs 348.85 and a market capitalization of Rs 2,638.49 crore, the company has experienced a 21.7 per cent return over three years despite a recent 19.13 per cent decline over the past year. Kolte-Patil's projects span residential complexes, integrated townships, commercial complexes, and IT Parks, covering over 28 million square feet. The company's strategic partnerships and low debt levels have helped it navigate various economic cycles successfully.

In the Quarterly Results of Dec-24, revenue stood at Rs 349.67 crore, reflecting a YoY growth of 361.37 per cent and a QoQ increase of 13.42 per cent from Rs 308.29 crore in Sep-24. Net profit for Dec-24 was Rs 25.30 crore, showing a YoY growth of 140.23 per cent and a QoQ rise of 159.75 per cent from Rs 9.74 crore in Sep-24. The net profit margin for Dec-24 was 7.24 per cent, improving from 3.16 per cent in Sep-24 and -82.98 per cent in Dec-23.

For FY24, revenue was Rs 1,371.48 crore, registering a decline of 7.86 per cent compared to Rs 1,488.43 crore in FY23. Net profit for FY24 stood at Rs 14.16 crore, compared to a net loss of Rs 90.78 crore in FY23, marking a growth of 212.27 per cent. The net profit margin for FY24 was -6.62 per cent, compared to 5.43 per cent in FY23.

As of December 2024, the shareholding pattern is as follows: Promoters hold 69.45 per cent, Foreign Institutional Investors (FIIs) hold 3.05 per cent, Domestic Institutional Investors (DIIs) hold 5.96 per cent, and the public holds 21.54 per cent.

With a PE ratio of 173x, the company trades at a premium compared to the industry PE of 27.9x.   

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.