Kolte-Patil gains after entering into agreement with Metropolitan Lifespace

Kolte-Patil Developers rose 1.44% to Rs 140.80 at 15:03 IST on BSE after the company announced that it has entered into a co-development agreement for a redevelopment project in Mumbai.

The company made the announcement during trading hours today, 11 December 2015.

Meanwhile, the BSE Sensex was down 244.85 points, or 0.97%, to 25,007.47

On BSE, so far 17,040 shares were traded in the counter, compared with an average volume of 10,048 shares in the past one quarter.

The stock hit a high of Rs 145 and a low of Rs 137 so far during the day. The stock had hit a 52-week high of Rs 240 on 6 April 2015. The stock hit a 52-week low of Rs 135.65 on 9 December 2015.

The stock had underperformed the market over the past one month till 10 December 2015, falling 16.99% compared with 1.91% decline in the Sensex. The scrip also underperformed the market in past one quarter, sliding 14.14% as against Sensex's 1.44% decline.

The small-cap company has an equity capital of Rs 75.77 crore. Face value per share is Rs 10.

Kolte-Patil Developers announced that it has entered into a Rs 120 crore co-development agreement with Metropolitan Lifespace Real Estate Developers for its redevelopment project, Jay-Vijay Society, in Ville Parle (E), Mumbai. Metropolitan Lifespace Real Estate Developers is an offshore entity managed and advised by J.P. Morgan Asset Management-Global Real Assets.

Jay Vijay co-operative housing society (CHS) has a plot area of 2.25 acres at a prime location off the Western Express Highway, with Kolte-Patil's economic interest of approximately 1.65 lakh square feet. Requisite approvals are in place, the members have been vacated and construction is expected to commence shortly, Kolte-Patil Developers said. The project is expected to be delivered over the next 30-36 months, the company said.

On a consolidated basis, Kolte-Patil Developers rose 3.7% to Rs 13.18 crore on 1.6% decline in net sales to Rs 154.14 crore in Q2 September 2015 over Q2 September 2014.

Kolte-Patil Developers is Pune's largest developer and has completed 1 crore sq. ft. of landmark developments in Pune and Bengaluru. It is also present in Mumbai with some upscale redevelopment projects. The company has till date built projects in multiple segments such as residential, commercial, retail, IT parks, and integrated townships.

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