Amitabh Bachchan, SRK-backed Sri Lotus Developers to raise ₹792 cr via IPO

Sri Lotus Developers and Realty, backed by Bollywood icons Amitabh Bachchan, Shah Rukh Khan, and Hrithik Roshan, and ace investor Ashish Kacholia, has taken initial public offering (IPO) route to raise capital by public listing of its shares on the domestic bourses. The Mumbai-based real estate developer has filed its draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹792 crore via IPO.

Ahead of the IPO filing, the realty firm raised around ₹400 crore through a private placement of 2.66 crore shares at ₹150 per share. The scheme was participation from mege star Amitabh Bachchan, who purchased around 6.7 lakh shares for ₹10 crore, while the Shah Rukh Khan Family Trust picked 6.75 lakh shares for ₹10.1 crore. Other notable investors include Hrithik Roshan, who bought 70,000 shares for slightly over ₹1 crore. Ace Investor, Ashish Kacholia acquired 33.33 lakh shares for ₹50 crore.

The IPO, having a face value of ₹1, is a complete issue of fresh equity shares with no offer for sale (OFS) component. The real estate developer, engaged in construction of residential and commercial premises in Mumbai, intends to use IPO proceeds to invest in its subsidiaries for funding development and construction cost of their ongoing projects.

Out of ₹792 crore, Sri Lotus Developers will utilise up to ₹550 crore for investment in its subsidiaries, Richfeel Real Estate Private Limited, Dhyan Projects Private Limited and Tryksha Real Estate Private Limited. A part of the capital will be used to meet general corporate purposes.

As per the DRHP, the company, led by promoter Anand Kamalnayan Pandit, has reserved half of the Issue for qualified institutional buyers, 15% for non-institutional investors, and remaining 35% for retail individual bidders. The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.

Established in 2005, Sri Lotus Developers focuses on redevelopment projects in the ultra luxury segment and luxury segment in the western suburbs. The company’s projects fall into three categories: greenfield projects, redevelopment projects, and joint development projects. As of November 30, 2024, the company has a developable area of 0.68 million square feet across both residential and commercial properties. It specialises in ultra-luxury and luxury homes, particularly in the sub-₹2.5 crore segment, which has quadrupled from 3% in 2021 to 16% in 9M 2024. So far, the company has completed three projects, while six are ongoing and another seven are upcoming projects.

On the financial front, the company's revenue from operations increased by 176.61% from ₹166.87 crore in fiscal 2023 to ₹461.57 crore in fiscal 2024. Profit after tax increased by 635.57% to ₹119.81 crore from ₹16.29 crore in the previous fiscal. For the six months ended September 30, 2024, revenue from operations stood at ₹243.42 crore, and profit was at ₹90.63 crore.

Monarch Networth Capital Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the issue.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)