Sri Lotus Developers IPO Surges 4x on Day 1 with 14.24 Cr Bids; GMP Rises 31%

The ₹792-crore initial public offering (IPO) of Sri Lotus Developers witnessed robust investor interest on its first day, with the issue subscribed over four times by the close of bidding on July 30. The luxury real estate developer’s public issue attracted total bids for around 14.24 crore shares, as against the 3.97 crore shares on offer.

Investor response was strong across all categories. The quota reserved for Qualified Institutional Buyers (QIBs) was oversubscribed more than five times, while Non-Institutional Investors (NIIs) subscribed their portion 3.1 times. Retail investors also participated actively, booking their segment nearly three times.

The IPO opened with a price band of ₹140 to ₹150 per share and will remain open for bidding until August 1. The company plans to use the proceeds from the fresh issue to fund ongoing and upcoming projects, repay certain borrowings, and strengthen its working capital position.

Market observers noted a healthy demand in the unofficial grey market as well. According to data from IPO Watch and Investorgain, the grey market premium (GMP) for Sri Lotus Developers stood at ₹194–196 per share — a 29–31% premium over the upper band of the IPO price. The GMP has shown an upward trend from the previous week’s ₹180–185 range, suggesting strong expectations of listing gains.

Founded in Mumbai, Sri Lotus Developers is a luxury-focused real estate developer with a presence in the Western Suburbs of the city. The company’s core business spans redevelopment, joint development, and greenfield projects in both residential and commercial segments. So far, it has completed 4 projects, while 5 are under construction and 11 are in the planning stage. Total developed area so far stands at 3.9 million sq ft, with 3.8 million sq ft currently in progress.

Financially, the company has shown a strong performance in recent years. Its revenue increased from ₹166 crore in FY23 to ₹518 crore in FY25. Average earnings per share (EPS) for the last three fiscal years stands at ₹3.83, while the average return on net worth (RoNW) is 41.49%.

Brokerages have largely issued a ‘subscribe for long term’ rating on the IPO. Bajaj Broking cited the firm’s leadership in the luxury segment in Mumbai’s suburbs and its solid financials. Angel One noted that the post-issue P/E of 32.2x appears reasonable, given the company’s niche positioning and focus on high-barrier luxury redevelopment. Anand Rathi also recommended subscribing to the IPO, although it said the issue appears fully priced based on a post-issue P/E of 30.6x and an EV/EBITDA multiple of 24.5x.

Choice Capital’s CEO Ratiraj Tibrewal remarked that the company is well-positioned to offer long-term value, rather than immediate listing gains. He pointed to the company’s strong project pipeline, consistent margin performance, and the broader growth trajectory of India’s luxury housing segment — expected to grow at a CAGR of 11–12% till 2030.

The allotment of shares is expected to be finalized by August 2, and the listing on NSE and BSE is scheduled for August 6. Investors can apply for a minimum lot of 100 shares, translating to an investment of ₹15,000.

With oversubscription across categories and a rising GMP, Sri Lotus Developers’ IPO appears set for a strong debut on the bourses. The firm’s sharp focus on Mumbai’s luxury redevelopment sector and financial growth have added to investor confidence.