Bollywood stars & Ashish Kacholia-backed Sri Lotus Developers gets nod for Rs 792 crore IPO

Sri Lotus Developers and Realty, backed by Bollywood stars and ace investor Ashish Kacholia, has received the go-ahead from the Securities and Exchange Board of India (SEBI) for a Rs 792 crore initial public offering (IPO). The Mumbai-based real estate developer focuses on constructing ultra-luxury and luxury residential and commercial projects, predominantly in the western suburbs of the city. Notably, this IPO consists entirely of new shares, with a face value of Re 1 per share, and does not include an offer-for-sale component.

The proceeds from the IPO will be primarily directed towards the company's subsidiaries—Richfeel Real Estate Private Limited, Dhyan Projects Private Limited, and Tryksha Real Estate Private Limited. Specifically, Rs 550 crore will support the development and construction of ongoing projects such as Amalfi, The Arcadian, and Varun. The company has built a reputation for crafting customer-centric environments, fostering a strong brand based on customer satisfaction.

Sri Lotus Developers boasts over 24 years of experience in the real estate sector. As of November 2024, the company has completed three projects, with six ongoing and seven upcoming projects. The firm is known for its redevelopment projects, offering 2BHK and 3BHK flats in the "Luxury Residential Segment" priced between ₹3 crore to ₹7 crore, and larger 3BHK, 4BHK, and penthouses in the "Ultra-Luxury Residential Segment" exceeding ₹7 crore.

The company's financial performance has shown significant growth, with revenue from operations increasing by 176.61% from ₹166.87 crore in Fiscal 2023 to ₹461.57 crore in Fiscal 2024. The profit after tax also surged by 635.57% to ₹119.81 crore in Fiscal 2024 compared to ₹16.29 crore in Fiscal 2023. For the first half of Fiscal 2024, revenue stood at Rs 243.42 crore, with a profit after tax of Rs 90.63 crore.

Prominent Bollywood personalities, including Amitabh Bachchan, Shah Rukh Khan, and Hrithik Roshan, have invested in the company, illustrating the high-profile backing Sri Lotus Developers receives. Their collective investments highlight the confidence in the company's strategic direction and market appeal.

Monarch Networth Capital Limited and Motilal Oswal Investment Advisors Limited are the lead managers for this IPO, with KFin Technologies Limited serving as the registrar. The company's equity shares will be listed on both the National Stock Exchange of India Limited and the BSE Limited, providing significant exposure in India's financial markets.

Sri Lotus Developers' operations are based in one of India's largest real estate markets, Mumbai. An Anarock Report indicated that from 2019 to 2023, the Mumbai Metropolitan Region led the top seven Indian residential real estate markets in terms of supply, absorption, and average base selling price. The company's growth is attributed to its robust brand, "Lotus Developers," and extensive market knowledge.

The IPO represents an opportunity for investors to tap into one of India's thriving real estate segments, bolstered by a strong management team and a focus on high-end residential and commercial developments. The anticipated listing dates and further updates will be closely monitored by market analysts and potential shareholders.