Kolte-Patil acquires new project with ~Rs1,400 crore topline potential; stock climbs ~2%

11 Aug 2022 , 09:43 AM

Kolte-Patil Developers Limited announced the acquisition of Pune-based Sampada Realities Private Limited.

Under the said acquisition, the real estate developer has agreed to acquire a residential development potential of ~2.5 million Sq.ft. at Kiwale in Pune.

The transaction outlines the immediate acquisition of 85% equity shares in Sampada Realities, with the remaining 15% stake to be acquired in due course. Kolte-Patil has agreed to make an aggregate total investment of Rs120 crore to be paid over time with this transaction.

Sampada Realities Private Limited will develop only one residential real estate project on 25 acres of land parcel in Kiwale, Pune, in phases. Kolte-Patil foresees a revenue potential of Rs1,400 crore from the development.

The project has received all necessary regulatory approvals. This acquisition will help Kolte-market Patil's position in Pune by providing significant visibility in Kiwale, a high-potential micro market in the city.

Kiwale is strategically located at the intersection of the old NH4 Highway, Katraj-Dehu Road, and the Mumbai-Pune Expressway, allowing for easy access to the Hinjewadi IT Hub, Pune city, and the industrial belt of north-western Pune.

At around 9.42 AM, Kolte Patil Developers was trading at Rs285.50 up by 1.55% from its previous closing of Rs281.15 on the BSE. The scrip opened at Rs285.60 and touched intraday high and low of Rs289.15 and Rs285.30 respectively.