Kolte-Patil has used ₹174 crore of its ₹417 crore share sale proceeds

Kolte-Patil Developers Limited, the Pune-based listed developer, said in a stock exchange filing on 28 October 2026 that it had reported no deviation in the use of proceeds from its preferential issue for the quarter ended 30 September 2026. The company has used ₹174.36 crore of the ₹417.03 crore raised through equity shares allotted on 23 June 2025. CARE Ratings Limited, the monitoring agency, verified that no material deviation from the stated objects occurred during the period.

In the September quarter alone, the company used ₹50.61 crore. Cumulative use stood at ₹123.75 crore at the end of June 2026, so the quarter's spending reconciles with the running total. Around ₹242.67 crore remains unutilised.

Where the money has gone

• General corporate purposes: ₹104.00 crore proposed, ₹74.83 crore used. The filing says the monitoring agency relied on a management certificate to classify this spending, as the placement document does not define the category.
• Development of new real estate projects: ₹265.00 crore proposed, ₹51.50 crore used. About ₹17.59 crore of this was spent in the September quarter.
• Government premiums and FSI costs: ₹48.03 crore proposed and fully used, completed in the June 2026 quarter.

The unspent balance is held mainly in money market mutual funds, with a small amount in the monitoring account at Axis Bank. The monitoring agency said these investments fit the company's stated policy of avoiding high-risk instruments.

The co-mingling observation

The monitoring agency also observed that proceeds moved into current accounts used for project expenses had been mixed with other transactions, which resulted in co-mingling of funds. The same kind of observation appeared in earlier monitoring reports, and the company's filings show it has been routed through operating accounts before final use. Investors who track issue proceeds usually look for whether such mixing is corrected in later reports. The filing does not describe any change in account structure.

The company's extended deadline for using the remaining funds is 22 December 2027. Shareholders approved the 12-month extension at the 35th Annual General Meeting on 27 July 2026. The filing does not give a timetable for deploying the ₹242.67 crore balance, and no date is stated for the next monitoring agency report.

Separately, CARE Ratings reaffirmed its CARE AA-; Stable rating on the company's listed non-convertible debentures aggregating ₹250 crore, on 1 October 2026. The rating reflects the company's audited FY26 and unaudited Q1 FY27 results.

What to watch next: the board meets on 3 November 2026 to approve unaudited standalone and consolidated results for the quarter and six months ended 30 September 2026. The next item to track in the proceeds story is whether the co-mingling observation is addressed in the next monitoring report, and how quickly the ₹242.67 crore balance is put to work before the December 2027 deadline.