Bollywood Superstars Back Sri Lotus Developers' Rs 792 Crore IPO
Sri Lotus Developers, a prominent player in the luxury and ultra-luxury real estate market of Mumbai's western suburbs, is set to launch an Initial Public Offering (IPO) to raise Rs 792 crore. Backed by Bollywood stars and veteran investors, the company a
Sri Lotus DevelopersIpoReal EstateLuxury MarketMumbaiReal Estate NewsJan 05, 2025
The company, which is backed by Bollywood megastars like Shah Rukh Khan, Amitabh Bachchan, and Hrithik Roshan, as well as other notable investors like Ashish Kacholia, has already filed its draft red herring prospectus (DRHP) for the IPO.
This strategic move is aimed at funding ongoing projects and corporate expenses, solidifying the company's position in the ultra-luxury and luxury segments of Mumbai's western suburbs.
According to the DRHP, Amitabh Bachchan has been allotted 6.66 lakh shares, while Shah Rukh Khan's family trust holds 6.75 lakh shares in the company.
Other Bollywood personalities like Ajay Devgan, Sara Ali Khan, and Rajkumar Rao are also investors.
Additionally, ace investor Ashish Kacholia holds 33.3 lakh shares.
While the exact price at which these shares were allotted is not specified, reports suggest that a private placement of 2.7 crore shares has been made in preparation for the DRHP filing.
Sri Lotus Developers is a leading developer of residential and commercial properties in Mumbai, with a strong focus on redevelopment projects in the ultra-luxury and luxury segments.
The company acquired land in the western suburbs of Mumbai in 2017, targeting the ultra-luxury and luxury residential markets.
Over the years, they have successfully executed 12 projects, including 8 residential and 4 commercial projects, developing over 3.32 million square feet (msf) across separate entities.
As of November 30, 2024, the company has a developable area of 0.68 msf, comprising both residential and commercial properties.
The company's strengths lie in its strategic position in the ultra-luxury and luxury residential real estate market of Mumbai's western suburbs, coupled with a customer-centric focus and a robust pipeline of projects.
The proceeds from the IPO, to the tune of Rs 550 crore, will be used to invest in subsidiaries for part-funding development and construction costs of ongoing projects, as well as for general corporate purposes.
Financially, Sri Lotus Developers reported a net profit of Rs 120 crore for the fiscal year 2024, with revenue from operations standing at Rs 461.57 crore.
For the six months ending September, the revenue from operations was Rs 243.42 crore, and the profit after tax was Rs 90.63 crore.
Monarch Networth Capital and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO.
The company's strategic initiatives and strong financial performance, coupled with the backing of Bollywood stars and seasoned investors, position Sri Lotus Developers as a formidable player in the real estate market.
Investors will be keen to see how the IPO performs and how the company continues to grow and innovate in the ultra-luxury and luxury segments of Mumbai's western suburbs.
Frequently Asked Questions
Who are the major investors in Sri Lotus Developers?
Sri Lotus Developers is backed by Bollywood stars such as Shah Rukh Khan, Amitabh Bachchan, and Hrithik Roshan, along with other notable investors like Ashish Kacholia. Other Bollywood personalities like Ajay Devgan, Sara Ali Khan, and Rajkumar Rao are also investors.
What is the purpose of the IPO?
The IPO aims to raise Rs 792 crore to fund ongoing projects and corporate expenses. Specifically, Rs 550 crore will be used to invest in subsidiaries for part-funding development and construction costs of ongoing projects, and for general corporate purposes.
What is the company's focus in the real estate market?
Sri Lotus Developers focuses on the ultra-luxury and luxury segments of the residential real estate market in Mumbai's western suburbs. They have a strong customer-centric approach and a robust pipeline of projects.
What financial performance did the company report for FY24?
For the fiscal year 2024, Sri Lotus Developers reported a net profit of Rs 120 crore with revenue from operations of Rs 461.57 crore. For the six months ending September, the revenue from operations was Rs 243.42 crore, and the profit after tax was Rs 90.63 crore.
Who are the book-running lead managers for the IPO?
Monarch Networth Capital and Motilal Oswal Investment Advisors are the book-running lead managers for the Sri Lotus Developers IPO.
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