In a major move signaling deeper institutional investment in India’s real estate sector, Kolte-Patil Developers Ltd. has allotted preferential shares worth ₹417 crore to a Blackstone affiliate, marking the first step in a broader acquisition plan by the global private equity giant.
Deal Snapshot: Blackstone’s Entry into Residential Real Estate
On June 23, 2025, Kolte-Patil’s board approved the allotment of 1.26 crore equity shares at ₹329 per share to BREP Asia III India Holding Co VII Pte. Ltd., a Blackstone-managed entity. This gives Blackstone a 14.3% stake in the Pune-based developer.
The preferential allotment is part of a larger transaction, wherein Blackstone plans to acquire a 40% stake in Kolte-Patil through a combination of share subscription, promoter stake purchase, and an open offer to public shareholders.
Strategic Implications and Future Control
Following the completion of the share purchase agreement and open offer, Blackstone will be classified as a joint promoter of Kolte-Patil Developers, gaining shared control over the company alongside existing promoters.
The Competition Commission of India (CCI) has already cleared the deal, which is valued at ₹1,150 crore in total. The open offer alone is expected to cost Blackstone ₹758.56 crore, targeting an additional 26% stake from public shareholders.
Growth Capital and Market Expansion
The ₹417 crore infusion is expected to strengthen Kolte-Patil’s balance sheet, reduce debt, and accelerate project execution in key markets like Pune, Mumbai, and Bengaluru. The partnership also opens doors for Kolte-Patil to explore student housing and rental housing models, especially for the IT workforce.
Shares of Kolte-Patil surged over 5% following the announcement, reflecting investor optimism around the strategic alliance and growth potential.
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