Upcoming IPO: Ashish Kacholia-backed Sri Lotus Developers and Realty gets SEBI nod to launch ₹792 crore-issue

Upcoming IPO: Sri Lotus Developers and Realty Limited has received a final nod from the capital markets authority, the Securities and Exchange Board of India (SEBI), to raise ₹792 crore through an initial public offering (IPO). The company had filed its IPO papers with SEBI on December 24, 2024.

The firm operates as a real estate developer involved in the construction of residential and commercial properties in Mumbai, Maharashtra, with a specialization in Redevelopment Projects within the Ultra Luxury and Luxury Segments in the western suburbs.

In December, Sri Lotus Developers generated around ₹400 crore via a private placement of 26.61 million shares priced at ₹150 each. Among the backers, Bollywood legend Amitabh Bachchan acquired approximately 6.7 lakh shares for ₹10 crore, while the Shah Rukh Khan Family Trust bought about 6.75 lakh shares for ₹10.1 crore. Additional prominent investors include Hrithik Roshan, who purchased 70,000 shares for a little over ₹1 crore, and notable investor Ashish Kacholia, who invested in 33.33 lakh shares for ₹50 crore.

The company is overseen by promoter Anand Kamalnayan Pandit, who possesses over 24 years of expertise in the real estate sector. The projects undertaken by the company are categorized into three types: Greenfield Projects, Redevelopment Projects, and Joint Development Projects.

For the six-month period ending September 30, 2024, the revenue from operations amounted to ₹243.42 crore, while the profit after tax reached ₹90.63 crore.

IPO details

The initial public offering, which has a face value of Re 1, is a new issuance of shares totaling up to ₹792 crore, with no offer-for-sale component by existing shareholders.

The proceeds from the fresh share issuance, amounting to ₹550 crore, will be utilized for investments in its subsidiaries, namely Richfeel Real Estate Private Limited, Dhyan Projects Private Limited, and Tryksha Real Estate Private Limited, to partially fund the development and construction costs of its ongoing projects, Amalfi, The Arcadian, and Varun, respectively; as well as for general corporate purposes.

Monarch Networth Capital Limited and Motilal Oswal Investment Advisors Limited serve as the book-running lead managers, while KFin Technologies Limited acts as the registrar for the issue.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.