Blackstone to acquire majority stake in Kolte-Patil for close to ₹2,000 crore

In one of the biggest deals in India’s residential real estate sector, US-based alternate asset manager Blackstone will be acquiring a majority stake in Kolte-Patil Developers for close to ₹2000 crore, taking an initial stake of 14.3 per cent through a preferential allotment, buying 25.7 per cent from the promoter Patil family followed by an open offer for an additional 26 per cent. 

Post the transaction, Blackstone will be the promoter of the company, while it will have joint control of the company along with the promoter family. This marks Blackstone’s first investment in residential real estate in the country. 

In an exchange filing, the Pune-based real estate developer said it had approved a preferential issue of 1.27 crore shares to a Blackstone entity, BREP Asia III India Holding Co VII Pte, at ₹329 each for a total amount of ₹417 crore. This is the first leg of the transaction. 

A share subscription agreement and a share purchase agreement between Blackstone, Kolte-Patil and its promoter family have also been signed. The promoter family held 69.45 per cent stake in the company at the end of December, exchange filings showed.

Under the share purchase agreement, Blackstone will acquire 25.7 per cent stake or 2.28 crore shares from the promoter family at ₹329 each for an aggregate amount of a little over ₹750 crore. This is the second leg of the transaction.

Subsequently it will be making an open offer to the public for a 26 per cent stake under the Securities and Exchange Board of India’s Takeover Code.

If for any reason the preferential allotment does not take place, then the number of shares that Blackstone will be acquiring from the promoter family will go up, the exchange filing said.

Shares of Kolte-Patil ended 1.58 per cent higher at ₹344.10 on the NSE on Thursday. Over a one-month period, the shares have risen 19.5 per cent. Its shares hit a 52-week low of ₹239 on March 3, 2025, having fallen over 58 per cent from the high it hit in April last year.

Under the terms of the agreement, the existing promoter group has the right to nominate two directors on the board, while Blackstone will have the right to nominate three directors. Either party have the right of first offer if the other plans to sell.