Sri Lotus Developers IPO Review: Backed by Bollywood Stars & Big Investors

The Sri Lotus Developers IPO continued to draw strong demand on Day 2, with the issue subscribed 10.34 times so far, data from the BSE showed. The ₹792 crore public issue, priced between ₹140 and ₹150 per share, closes on Friday, August 1.

💹 Strong Subscription Demand

By 5:00 PM IST on Thursday, the IPO had received 41.02 crore bids against an offer of 3.96 crore shares. The retail investor segment was subscribed 8.90 times, the Non-Institutional Investor (NII) category saw 15.96 times demand, while Qualified Institutional Buyers (QIBs) placed bids 8.69 times their allocation.

🏦 Anchor Investment Boost

Ahead of its opening, Sri Lotus Developers raised ₹237 crore from marquee institutional investors through an anchor round. The list of participants included Tata Mutual Fund, Mahindra Manulife MF, Nippon India MF, HSBC MF, SBI MF, Citigroup Global Markets, and Nomura Singapore Ltd.

In total, 1.58 crore equity shares were allotted at the upper band of ₹150 each.

🌆 Company Profile & Project Pipeline

Promoted by Anand Kamalnayan Pandit, the Mumbai-based firm focuses on luxury and ultra-luxury redevelopment projects in the city’s western suburbs. As of June 30, 2025, the developer had completed multiple projects, with 5 ongoing and 11 more in the pipeline.

Its asset-light model has kept the balance sheet net-debt free, while maintaining some of the highest EBITDA and PAT margins among peers, according to SBICAP Securities.

📊 Analyst Recommendations

Brokerages remain upbeat about the IPO:

♦ Angel One: At a post-issue P/E of ~32.2x, the valuation is “reasonable” for its niche positioning. Rating: Subscribe (Long-term).

♦ Mehta Equities: Highlights the company’s focus on high-growth, high-margin redevelopment projects. Rating: Subscribe.

♦ SBICAP Securities: Notes expansion into Mumbai’s prime markets including Nepean Sea Road, Prabhadevi, and Ghatkopar. Rating: Subscribe at cut-off price.

💰 Grey Market Premium (GMP)

According to Investorgain, the GMP stands at +₹44, signaling an estimated listing price of ₹194 per share — about 29% above the issue price.

The GMP reflects investors’ willingness to pay a premium over the official price, underscoring strong demand and optimism.

🌟 High-Profile Pre-IPO Investors

The company attracted Bollywood A-listers and leading investors during its December private placement worth ₹407 crore.

♦ Amitabh Bachchan: 6.7 lakh shares for ₹10 crore

♦ Shah Rukh Khan Family Trust: 6.75 lakh shares for ₹10.1 crore

♦ Ashish Kacholia: 33.33 lakh shares for ₹50 crore

Other names include Hrithik Roshan, Rakesh Roshan, Jackie Shroff, Ektaa Kapoor, Tusshar Kapoor, and Jeetendra.

📌 IPO Details at a Glance

♦ Issue Size: ₹792 crore (Fresh Issue)

♦ Price Band: ₹140 – ₹150 per share

♦ Lead Managers: Monarch Networth Capital, Motilal Oswal Investment Advisors

♦ Use of Proceeds: To fund ongoing luxury projects (Amalfi, The Arcadian, Varun) and for general corporate purposes

With demand outpacing supply and endorsements from both institutions and celebrities, market experts believe the IPO could see a strong listing.