Upcoming IPO: Ashish Kacholia-backed Sri Lotus Developers and Realty files DRHP with SEBI to raise ₹792 crore via IPO

Mumbai-based real estate developer Sri Lotus Developers Limited has filed its draft red herring prospectus (DRHP) with the markets regulator, the Securities and Exchange Board of India (SEBI), on Thursday, December 26.

The company aims to raise nearly ₹792 crore through its book-built initial public offering (IPO). The real estate developer is involved in building both residential and commercial properties in and around the city of Mumbai. 

Sri Lotus Developers IPO Details

The Sri Lotus Developers Limited is offering an entirely fresh issue of equity shares with a face value of ₹1 per share, amounting to ₹792 crore. The public issue offer does not have any offer-for-sale (OFS) component.

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

The company has not disclosed the total number of shares offered under the fresh issue. 

According to the draft papers, the company aims to use the net proceeds from the public issue to fund its subsidiaries, Richfeel Real Estate Private Limited, Dhyan Projects Private Limited and Tryksha Real Estate Private Limited. The funding of ₹550 crore will be allocated to these companies to partly fund the development and construction cost of their ongoing projects — Amalfi, The Arcadian and Varun, respectively.

The remaining money will be utilised to fund general corporate purposes.

About Sri Lotus Developers

Sri Lotus Developers Limited was founded in 2015, and the firm has a portfolio of more than 7 million gross sqft of ongoing and completed projects according to the company website.

The company's net profits were at ₹90.6 crore as of the July to September quarter of the financial year 2024-25. The annual net profits were ₹119.80 crore for the financial year ended 2024, ₹16.28 crore as of 2023, and ₹12.51 crore as of the financial year ended 2022. 

The company's net worth is ₹398.29 crore as of the quarter ended September 2024. 

The key risk for the company is location exposure, as the realty firm focuses only on the Western Suburbs of Mumbai. So, any economic, regulatory, or other changes like a natural disaster in the region may affect the company's ability to ensure the sale of projects and the pricing of units for such projects, as per the exchange filing.

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