Stock Market: Small company's share price doubled in 5 months - news came and the pace picked up again:

News Topical, Digital Desk : Shares of real estate company Kolte Patil Developers (KPDL) witnessed a tremendous surge on Tuesday. The stock touched a 52-week high of ₹ 488.65 intra-day, surpassing last week's high of ₹ 475.30. This partnership between Kolte Patil and Blackstone is a major strategic move in India's residential real estate sector. This will not only give financial strength to KPDL, but will also increase its operational scale and confidence in the market. Investors see this deal as a strong step towards long-term growth.

Why the rise?
KPDL's stock has jumped 12% in the last seven trading sessions. The main reason for this is the approval given to BREP Asia III India Holding Co VII Pte. Ltd (Blackstone Group) to issue 12.68 million shares through preferential allotment. The company will get funding of ₹417 crore from this private placement.

Blackstone's big entry
In March 2025, Kolte Patil announced a strategic partnership with Blackstone. In this deal, Blackstone will invest a total of ₹1,800 crore.

Out of this, shares worth ₹750 crore will be purchased from the promoters. An open offer of ₹760 crore has also been brought for public shareholders (at ₹329 per share). Overall, Blackstone's stake can go up to 66%. Now Blackstone will get joint control in KPDL - which includes the appointment of directors and veto power on important decisions.

What is the benefit to Kolte Patil? There is no debt in the company's balance sheet, which means the balance sheet is strong. This deal will help KPDL in expanding projects, better execution and scalable growth. With the brand value and funding from Blackstone, KPDL will be able to expand rapidly in India's residential real estate market.

Opinion of Motilal Oswal Brokerage firm Motilal Oswal has maintained a BUY rating on KPDL, and has set a target price of ₹560 for the stock. The company's pre-sales declined by 9% in FY25, but a 31% CAGR in pre-sales is expected during FY25–FY27. The promoter overhang is now seen to be removed and the NAV discount has been abolished.