Upcoming IPO: Ashish Kacholia, SRK-Backed Lotus Developers Files DRHP With SEBI For Rs 792 Crore IPO

Mumbai-based Sri Lotus Developers and Realty, a prominent name in the ultra-luxury real estate segment, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise Rs 792 crore through an initial public offering (IPO). The IPO will consist entirely of a fresh issue, with no offer-for-sale (OFS) component.

Sri Lotus Developers boasts a strong investor lineup, including ace investor Ashish Kacholia, along with several Bollywood stars. The company's shareholding is primarily controlled by promoters, who hold a 91.78% stake, while the remaining 8.22% equity stake is distributed among 150 public shareholders. This group includes notable names such as Shah Rukh Family Trust, Amitabh Bachchan, Hrithik Roshan, Tiger Shroff, and Sajid Nadiadwala, among others.

Ashish Kacholia has been an investor in the company, committing nearly Rs 50 crore for 33.33 lakh shares. Bollywood's presence is equally noteworthy, with stars investing a combined Rs 28.92 crore for 19.28 lakh shares.

Sri Lotus Developers has already secured funds through two private placements this year. In September 2024, the company raised Rs 139.4 crore by issuing 46.46 lakh equity shares at Rs 300 per share. Investors included NAV Capital, Minerva Ventures, Smart Algo Solutions, and Yantra E-Solarindia.

In December 2024, an additional Rs 399.2 crore was mopped up by allotting 2.66 crore equity shares at Rs 150 per share. This time, a broader group of 118 investors participated, including Ashish Kacholia, Abundantia Capital, Aminiti Builders, and Bollywood personalities.

Sri Lotus Developers focuses on redevelopment projects in Mumbai's western suburbs, catering to ultra-luxury and luxury segments. The company has completed three projects as of November 2024, with six ongoing projects and seven upcoming projects in the pipeline. These projects collectively represent an estimated 1.05 million square feet of developable area under construction and 4.5 million square feet in future developments.

The IPO proceeds will largely be directed toward funding the construction and development costs of three major ongoing projects:
Amalfi: Under the subsidiary Richfeel Real Estate.
The Arcadian: Managed by Dhyan Projects.
Varun: Developed by Tryksha Real Estate.
Of the total proceeds, Rs 550 crore will be allocated to these projects, while the remaining funds will be used for general corporate purposes.

Merchant Bankers

The IPO is being managed by Monarch Networth Capital and Motilal Oswal Investment Advisors.