Sri Lotus Developers Files DRHP for Rs 792-crore IPO
Sri Lotus Developers and Realty Ltd, backed by Bollywood stars and renowned investor Ashish Kacholia, has filed preliminary papers with the capital market regulator, Securities and Exchange Board of India (SEBI), to raise Rs 792 crore through an initial public offering (IPO). The IPO is entirely a fresh issue of shares, with no Offer-for-Sale (OFS) component. The Draft Red Herring Prospectus (DRHP) also includes a reservation for subscription by eligible employees.
Proceeds from the fresh issue, as per the draft papers filed, will be used for investment in its subsidiaries, including Richfeel Real Estate Pvt Ltd, Dhyan Projects Pvt Ltd, and Tryksha Real Estate Pvt Ltd. The funds will be used for the part-funding of the development and construction cost of its ongoing projects, namely Amalfi, The Arcadian, and Varun. Additionally, a portion of the funds raised will be utilized for general corporate purposes.
Earlier this month, Sri Lotus Developers raised over Rs 407 crore through a private placement. Among the investors were Bollywood icons Amitabh Bachchan and Shah Rukh Khan, who purchased shares worth Rs 10 crore and Rs 10.1 crore, respectively. Other notable investors include Hrithik Roshan, Rakesh Roshan, and Ektaa Kapoor.
Sri Lotus Developers is primarily engaged in the construction of residential and commercial premises in Mumbai, Maharashtra, with a focus on redevelopment projects in the ultra-luxury and luxury segments in the western suburbs. The company has a developable area of 0.68 million square feet across both residential and commercial properties. It has completed three projects and currently has six ongoing projects with seven more in the pipeline.
On the financial front, the company’s revenue from operations saw a significant increase, reaching Rs 461.57 crore in fiscal year 2024, up from Rs 166.87 crore in the previous year. Profit after tax also witnessed a substantial surge, reaching Rs 119.81 crore in fiscal year 2024, compared to Rs 16.29 crore in the previous year. In the first six months of fiscal year 2024 (April-September), the company’s revenue from operations stood at Rs 243.42 crore, with a profit after tax of Rs 90.63 crore.
The book-running lead managers to the IPO are Monarch Networth Capital and Motilal Oswal Investment Advisors.
Conclusion
Sri Lotus Developers, backed by renowned investor Ashish Kacholia and prominent Bollywood figures, has filed for a Rs 792-crore IPO, with an entirely fresh issue of shares. The company plans to use the funds raised for investment in subsidiaries, part-funding ongoing projects, and general corporate purposes. With a focus on the ultra-luxury and luxury segments in Mumbai, Sri Lotus Developers aims to further expand its presence in the real estate market.
