Key Points:
- IPO size is Rs 792 crore, entire issue is fresh equity.
- Rs 550 crore to fund ongoing luxury real estate projects.
- Strong FY25 profit growth; listing slated for August 6.
Mumbai: Sri Lotus Developers is set to launch its Initial Public Offering (IPO) on Wednesday, July 30, with the subscription window closing on Friday, August 1. The company has fixed a price band of Rs 140 to Rs 150 per equity share, with a face value of Re 1. Anchor investor allocation is scheduled for Tuesday, July 29.
- The lot size is set at 100 equity shares, and bids must be placed in multiples thereof.
- The IPO consists entirely of a fresh issue of shares with a total fundraising target of Rs 792 crore.
Use of Proceeds and Project Focus
Out of the total proceeds, Rs 550 crore will be allocated to subsidiaries—Richfeel Real Estate, Dhyan Projects, and Tryksha Real Estate—to partly fund ongoing developments named Amalfi, The Arcadian, and Varun, respectively.
The remaining funds will likely be utilized for general corporate purposes and to strengthen the balance sheet, including possible debt repayment and working capital needs.
Investor Allocation and Listing Timeline
The IPO allocation is structured as follows:
- QIBs (Qualified Institutional Buyers): Not more than 50 percent
- NIIs (Non-Institutional Investors): Not less than 15 percent
Retail Individual Investors: Not less than 35 percent
The basis of allotment will be finalized on Monday, August 4, with refunds initiated on Tuesday, August 5. Shares will be credited to demat accounts on the same day, and the listing is expected on Wednesday, August 6 on both BSE and NSE.
The lead managers for the issue are Monarch Networth Capital and Motilal Oswal Investment Advisors.
Strong Financial Growth and Market Position
Headquartered in Mumbai, Sri Lotus Developers is primarily engaged in luxury and ultra-luxury residential and commercial redevelopment projects in Mumbai's western suburbs. As of June 30, 2025, it has developed a total built-up area of 0.93 million sq. ft. across segments.
The company posted strong financial growth in FY25, with revenue increasing to Rs 549.68 crore, up from Rs 461.58 crore in the previous year. Net profit surged to Rs 227.89 crore, a sharp rise from Rs 119.81 crore in FY24. The company’s total debt stood at Rs 122.13 crore as of FY25.
In terms of valuation, its peers include Arkade Developers (P/E 22.03), Keystone Realtors (P/E 48.18), Suraj Estate Developers (P/E 14.91), Sunteck Realty (P/E 43.26), Mahindra Lifespaces (P/E 91.43), and Hubtown (P/E 68.20), indicating a competitive but optimistic valuation landscape.
