SEBI Approves ₹792 Crore IPO for Shah Rukh Khan-backed Sri Lotus Developers
Sri Lotus Developers and Realty Limited, backed by Bollywood stars and the Shah Rukh Khan Family Trust, has received SEBI's nod for its ₹792 crore IPO. The funds will be used for ongoing projects and general corporate purposes.
Real EstateIpoSebiBollywoodLuxury PropertyReal Estate NewsMay 20, 2025
The Mumbai-based developer is known for its redevelopment projects in the ultra-luxury and luxury segments in the western suburbs of Mumbai. The company filed its draft red herring prospectus (DRHP) with SEBI in December 2024, and the approval marks a significant milestone in its growth journey.
The public issue is an entirely fresh issue of shares, with a face value of ₹1 per share, amounting to ₹792 crore. Notably, there is no offer for sale (OFS) component in the IPO. The company plans to use ₹550 crore from the net issue proceeds to invest in subsidiaries for part-funding development and construction costs of ongoing projects. The remaining funds will be allocated for general corporate purposes.
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. The equity shares are proposed to be listed on the National Stock Exchange of India Limited (NSE) and BSE Limited.
Sri Lotus Developers focuses on developing ultra-luxury and luxury residential properties, including 2BHK and 3BHK apartments in the ₹3 crore to ₹7 crore range and penthouses priced above ₹7 crore. As of November 30, 2024, the company had three completed projects, six ongoing projects, and seven upcoming projects, showcasing its robust pipeline and market presence.
In December 2024, Sri Lotus Developers raised approximately ₹400 crore through a private placement of 26.61 million shares at ₹150 per share. Among the notable investors, Bollywood star Amitabh Bachchan purchased around 6.7 lakh shares for ₹10 crore, while the Shah Rukh Khan Family Trust acquired about 6.75 lakh shares for ₹10.1 crore. Hrithik Roshan also invested, buying 70,000 shares for slightly over ₹1 crore.
The involvement of prominent Bollywood personalities in Sri Lotus Developers has not only brought significant capital but also enhanced the company's brand value and market credibility. This strategic alignment with high-profile investors is expected to positively impact investor confidence and drive the success of the IPO.
The real estate sector in India has been witnessing a resurgence, with a growing demand for luxury and ultra-luxury properties. The approval of the IPO for Sri Lotus Developers is a testament to the sector's potential and the trust placed by investors in well-managed and strategically positioned companies.
As the company moves forward with its IPO, it is poised to leverage the funds to expand its project portfolio and further solidify its position in the competitive real estate market. The successful listing on the NSE and BSE is anticipated to open new avenues for growth and investment opportunities for both the company and its stakeholders.
Frequently Asked Questions
What is the purpose of the ₹792 crore IPO by Sri Lotus Developers?
The funds raised from the IPO will be used for investing in subsidiaries for part-funding development and construction costs of ongoing projects, and the remaining will be used for general corporate purposes.
Who are the notable investors in Sri Lotus Developers?
Notable investors include the Shah Rukh Khan Family Trust, Amitabh Bachchan, Hrithik Roshan, and ace investor Ashish Kacholia.
What type of properties does Sri Lotus Developers focus on?
Sri Lotus Developers focuses on developing ultra-luxury and luxury residential properties, including 2BHK and 3BHK apartments in the ₹3 crore to ₹7 crore range and penthouses priced above ₹7 crore.
When did Sri Lotus Developers file its DRHP with SEBI?
Sri Lotus Developers filed its draft red herring prospectus (DRHP) with SEBI in December 2024.
What is the role of Monarch Networth Capital Limited and Motilal Oswal Investment Advisors Limited in the IPO?
Monarch Networth Capital Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers for the IPO.
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