Ace investor Ashish Kacholia-backed Sri Lotus Developers and Realty Ltd has filed its draft red herring prospectus (DRHP) with capital markets regulator Sebi to raise Rs 792 crore via an initial public offering (IPO).
The initial share sale, with a face value of Re 1, is completely a fresh issuance of shares with no offer-for-sale (OFS) component. The offer also includes reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
Sri Lotus has already raised around Rs 400 crore through a private placement of 26.61 million shares at Rs 150 per share. Kacholia purchased around 33.33 lakh shares for Rs 50 crore. Among other investors, Bollywood icon Amitabh Bachchan purchased around 6.7 lakh shares for Rs 10 crore, while the Shah Rukh Khan Family Trust acquired about 6.75 lakh shares for Rs 10.1 crore. Other notable investors include Hrithik Roshan, who bought 70,000 shares for slightly over Rs 1 crore.
The company said proceeds of up to Rs 550 crore from the fresh issue will be used for investment in its subsidiaries (Richfeel Real Estate Pvt Ltd, Dhyan Projects Pvt Ltd and Tryksha Real Estate Pvt Ltd) for part-funding development and construction cost of its ongoing projects and general corporate purposes.
The issue has been done through a book-building process, wherein 50 per cent is allocated to qualified institutional buyers (QIBs) and 15 per cent and 35 per cent of the net offer is assigned to non-institutional and retail individual bidders, respectively.
The firm said its revenue from operations increased by 176.61 per cent from Rs 166.87 crore in fiscal 2023 to Rs 461.57 crore in fiscal 2024. Profit after tax (PAT) increased by 635.57 per cent to Rs 119.81 crore in fiscal 2024 to Rs 16.29 crore in fiscal 2023. For the six months ended on September 30, 2024, revenue from operations stood at Rs 243.42 crore, and profit after tax stood at Rs 90.63 crore.
Monarch Networth Capital Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers of the issue and KFin Technologies Ltd is the registrar. The equity shares are proposed to be listed on both BSE and NSE.