Sri Lotus Developers and Realty Readies ₹792-crore IPO

Mumbai, December 26, 2024: Real estate developer Sri Lotus Developers and Realty Limited has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise INR792 crore through Initial Public Offering (IPO).

The IPO, with a face value of Re 1, is a fresh issue of shares up to INR792 crore with no offer-for-sale component. The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.

In December 2024, Sri Lotus Developers raised approximately INR400 crore through a private placement of 26.61 million shares at INR150 per share. Among the investors, Bollywood Icon Amitabh Bachchan purchased around 6.7 lakh shares for INR10 crore, while the Shah Rukh Khan Family Trust acquired about 6.75 lakh shares for INR10.1 crore. Other notable investors include Hrithik Roshan, who bought 70,000 shares for slightly over INR1 crore. Ace Investor, Ashish Kacholia purchased 33.33 lakh shares for INR50 crore.

The proceeds from the fresh issue to the extent of Rs 550 crore will be used for Investment in its Subsidiaries, Richfeel Real Estate Private Limited, Dhyan Projects Private Limited and Tryksha Real Estate Private Limited for part-funding development and construction cost of its Ongoing Projects, Amalfi, The Arcadian and Varun, respectively; and general corporate purposes.

The Issue is being made through the book-building process, wherein not more than 50 per cent of the Issue is allocated to qualified institutional buyers, and not less than 15 per cent and 35 per cent of the net offer is assigned to non-institutional and retail individual bidders respectively.

The company’s operations are based in Mumbai, one of India’s largest real estate markets. It is led by promoter Anand Kamalnayan Pandit, who has completed twelve projects in the western suburbs of Mumbai, developing over 3.32 million square feet, with eight residential and four commercial projects.