Kolte-Patil to raise Rs 270 crore from capital market

Mumbai, Nov 7 (UNI) Pune-based Kolte-Patil Developers are entering the capital market to raise Rs 270 crore to fund its expansion plans.

The price band for the issue of 18.81 million shares of Rs 10 has been fixed at Rs 125 to Rs 145.

The Net issue will constitute 25 per cent of the post-issue paid up capital of the company. The issue will open from Nov 19- Nov 22.

Of the total equity floated, 50 percent will be available on proportionate basis to Qualified Institutional Buyers (QIBs), out of which 5 percent will be available for Mutual Funds. Retail Individual Bidders will get 35 percent of the net issue.

The receipts of the issue will be utilised to meet construction and developmental costs and finance acquisition of development rights.

The company has 28 projects in the pipeline spread over 17.80 million sq.ft of saleable area with plans to enter high-growth markets of Hyderabad, Nasik, Nagpur, Goa, Aurangabad, Mysore and the hospitality industry.

''Our strategy is diversification, expanding into growing markets, cultivating long-term relationship, maintaining quality and recruiting and retaining quality workforce'', said Hardeep Dayal, CEO of the group.

Incorporated in 1991, Kolte-Patil has developed and constructed 25 projects that include residential complexes, IT parks and townships in 4.01 million sq.ft of land in Pune and Bangalore.

During the fiscal year of 2007, it posted a net profit of Rs 836 crores.

The company has also entered into joint venture agreements with ICICI Venture Funds, K2 Property.

UNI