Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

Kolte-Patil completes second tranche payment of Rs. 70 crore for buy-out of ICICI Venture's 50% stake in Life Republic Township project in pune

Posted On: 2019-12-02 15:26:25


Kolte-Patil Developers Limited (BSE: 532924, NSE: KOILTEPATIL; KPDL), a leading Pune based real estate developer, announced that the company has completed the second tranche payment of Rs. 70 crore to India Advantage Fund-III (IAF-III) and India Advantage Fund-IV (IAF-IV) managed by ICICI Venture Funds Management Company Limited (ICICI Venture) for the buyout of their 50% stake in KPDL's flagship township project - Life Republic. As indicated earlier, the payment has been made largely funded through internal accruals. The current disbursement is as per schedule and follows the first installment of Rs. 70 crore paid out in March 2019. Following the buyout, KPDL'S economic interest in Life Republic will increase to 95% and the company's overall economic interest in its entire portfolio of projects will rise from [~60% to ~90%]. The Life Republic project resides in an SPV called Kolte-Patil I-Ven Townships (Pune) Ltd.

In May, 2019, Kolte-Patil had announced the buy-out of ICICI venture's stake for a cash consideration of Rs. 210 crore to be paid in three installments. The Company has already completed two installments and the last one is due in August 2020. In addition, 12 acres of land in Life Republic with FSI required to achieve saleable area equivalent to 1.4 million square feet, will be allocated to IAF III and IAF IV upon the project obtaining FSI of 1.0 from the present 0.5. Kolte-patil is funding the acquisition through internal accruals and bank borrowings. The company has strong visibility of cash flow from operations and maintains a healthy balance sheet position - as on September 30 2019, it had a net debt to equity ratio of 0.41 times.

Life Republic, being the company's flagship project spread across ~400 acres, is expected to continue to drive Kolte-Patil's revenue, profits, cash flows and return ratios in a significant manner over next decade-and-a-half. At present, ~4.2 million square feet has already been delivered in the project, making Life Republic an established destination for Pune home buyers and currently home to 10,000 residents. The project has 4 million square feet of pre-approved development space by MAHARERA, and is expected to add another 10,000 residents within three years. In FY19, sales of almost 0.9 million square feet were achieved at Life Republic and recent new launches/festive promotions continue to drive strong demand visibility among buyers. The total saleable area at Life republic is ~20 million square feet, based on FSI of 1.0, which is currently incorporated in the project design plans. However, the total FSI potential of the project is 1.7 based on the integrated township norms.

Commenting on this key development, Mr. Gopal Sarda, Group CEO, Kolte-Patil Developers Ltd. said, "Our decision to buy-out ICICI Ventures' stake in Life Republic is a key milestone in our growth journey and value creation program. The unique structuring of this buy-out makes it possible to maintain our asset light business model, by enabling tranche payments from internal accruals and also ensuring strong visibility of pre-sales, profit, cash flow and ROCE from the progressive monetization of this property across the next decade-and-a-half.

Life Republic, being our flagship integrated township project in Pune, has witnessed consistent demand from home buyers on the back of our 360-degree product offerings. Especially, in the last year and current year, the performance of the project has improved significantly. We have launched new offerings and promotions at this project and the customer traction at this project remains strong. The project is already a landmark destination in western Pune with best-in-class physical as well as social infrastructure. We believe that based on its strategic location and visibility of several infrastructure developments planned in the vicinity, the life cycle value of the project stands considerably enhanced."

A strong corporate governance framework along with the positive interplay of approvals, sales, collections and delivery, has strengthened our brand equity amongst our customers. The opportunity in residential real estate remains sizeable and we remain confident of improving of our growth trajectory further."

Shares of KOLTE-PATIL DEVELOPERS LTD. was last trading in BSE at Rs.235.55 as compared to the previous close of Rs. 235.45. The total number of shares traded during the day was 1803 in over 216 trades.

The stock hit an intraday high of Rs. 244 and intraday low of 235.25. The net turnover during the day was Rs. 432090.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Sonata Launches 'CSK 2020 Edition' for Chennai Superkings Fans

Universal Cables Ltd updates on capacity expansion

Innovators Facade Systems Limited receives work order of Rs. 26 crores

MRPL shareholders approve proposal to raise funds of Rs. 5000 crore

ITC Ltd increases stake in Delectable Technologies Pvt Ltd

PNB associate bank, JSC Tengri Bank's License revoked

ITC Ltd.'s Sunfeast YiPPee!'s 10th Anniversary celebrations make a GUINNESS WORLD RECORDS® achievement

RITES Ltd board approves buy back through tender offer at Rs. 265

Route Mobile Limited shares to list on Monday - Sep 21, 2020

Mysore Petro Chemicals Limited to write-off GBP 770,000

Somany Ceramics adds a dash of style at T2, Mumbai Airport.

United Spirits Ltd announces resignation of CFO

Lords Chloro Alkali Ltd posts loss of Rs. 1.08 crore in Q1FY21

Zydus Cadila receives final approval from USFDA for Potassium Chloride Extended-Release Tablets

ICRA upgrades rating of Escorts Ltd

Bhatia Mobile to Migrate to main board of BSE

Avantel Ltd receives order of Rs. 15.97 crore from Bharat Electronics Ltd

Magna Electro Castings Ltd board approves buy back at Rs. 175

TATA Tea Chakra Gold Becomes Official Tea Partner for Chennai Super Kings in IPL 2020

Tiger Logistics India Limited provides future Business Outlook

Dr. Reddy's Laboratories announces settlement of U.S. Revlimid® Capsules patent litigation with Celgene

TVS Motor Company expands and strengthens its presence in Colombia

ICICI Securities successfully closes ~INR 6,000 mm IPO of Route Mobile Limited

EIH Limited approves rights issue, fixes Sep 23, 2020 as record date

Hindalco and Hindustan Copper sign MoU for supply of copper concentrate

Kilpest India Limited to merge subsidiary with itself, change name as 3B BlackBio Dx Ltd

Sterling and Wilson Solar Limited Signs order of 106.71 MW worth USD 62.6 mn in Chile

South Korea donates One lakh masks to TVS Motor Company for free distribution to aid India's fight against COVID-19

TCS Recognized as a Leader in Cloud-Native Application Development Services by Everest Group

Power Grid Corporation of India Ltd receives approval for setting up of InvIT

Mahindra Happinest® sells 100+ homes online within a week at 'Happinest Palghar'

Ramco Systems signs agreement with Arla Foods

IRCON International Ltd secures order worth Rs. 1900 crore

Phoenix Group Partners with TCS to Introduce Enhanced Analytics for Workplace Pension Clients

L&T Construction secures order from Northern Coalfields Ltd

Dr. Reddy's announces the launch of Over-the-Counter Olopatadine Hydrochloride Ophthalmic Solution USP, 0.2% and 0.1%, the store-brand equivalent of Pataday®, the Eye Allergy Drop in the U.S. Market

Ashok Leyland receives an order for 1400 ICVs from Procure Box

PTC India Financial Services Ltd receives Rs. 115.57 crore IT refund

Thomas Cook India & SOTC partner with India's favourite storyteller Amar Chitra Katha

Shankar Lal Rampal Dye-Chem Ltd Board to consider Bonus Issue of Equity Shares

Dhanuka Agritech Ltd fixes Sep 28, 2020 as record date for buy-back

Sterling and Wilson Solar Limited declares financial results for quarter ending 30th June 2020

JMC secures new orders of Rs. 1,342 Crores

ABM Knowledgeware Ltd bags Rs 127.44 Crores order for SAP Technology Modernization

Titan Company with SBI launches India's first contactless payment watches

Bajaj Consumer Care Joins hand with IndiaMART, to enhance their digital presence in B2B market segment

ICICI Securities successfully closes ~INR 7,020 mm IPO of Happiest Minds Technologies Limited

The Bank of Bahrain and Kuwait goes live with iGTB's Contextual Digital Transaction Banking platform to support growth

HCL and Google Cloud Expand Partnership to Deliver Accelerated Business Intelligence Platform

CARE Ratings reaffirms 'CARE A-' rating with stable outlook for Jindal Stainless (Hisar) Limited







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019