The Realtor is backed by Bollywood Stars and Ashish Kacholia
FinTech BizNews Service
Mumbai, 26 December, 2024: Bollywood Stars and Ashish Kacholia backed Sri Lotus Developers and Realty Limited a real estate developer engaged in construction of residential and commercial premises in Mumbai, Maharashtra, with a focus in Redevelopment Projects in the Ultra Luxury Segment and Luxury Segment in the western suburbs, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise Rs 792 crore through Initial Public Offering (IPO).
The IPO, with a face value of Re 1, is a fresh issue of shares up to Rs 792 crore with no offer-for-sale component. The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion. In the month of December 2024, Sri Lotus Developers raised approximately Rs 400 crore through a private placement of 26.61 million shares at Rs 150 per share. Among the investors, Bollywood Icon Amitabh Bachchan purchased around 6.7 lakh shares for Rs 10 crore, while the Shah Rukh Khan Family Trust acquired about 6.75 lakh shares for Rs 10.1 crore. Other notable investors include Hrithik Roshan, who bought 70,000 shares for slightly over Rs 1 crore. Ace Investor, Ashish Kacholia purchased 33.33 lakh shares for Rs 50 crore.
The proceeds from the fresh issue to the extent of Rs 550 crore will be used for Investment in its Subsidiaries, Richfeel Real Estate Private Limited, Dhyan Projects Private Limited and Tryksha Real Estate Private Limited for part-funding development and construction cost of its Ongoing Projects, Amalfi, The Arcadian and Varun, respectively; and general corporate purposes. The Issue is being made through the book-building process, wherein not more than 50% of the Issue is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively. Sri Lotus Developers and Realty Ltd, since its inception, has focused on creating customer-centric environments that enhance lifestyles, establishing a brand centered around customer satisfaction. The company's operations are based in Mumbai, one of India's largest real estate markets.
According to an Anarock Report, from 2019 to 2023, the Mumbai Metropolitan Region (MMR) ranked first among the top seven Indian residential real estate markets in terms of supply, absorption, and average base selling price. In 2017, the company began acquiring land in the western suburbs of Mumbai, focusing on the ultra-luxury and luxury residential markets. Its growth can be attributed to its promoter, indepth market knowledge, design and execution capabilities, sales ability, and the trusted "Lotus Developers" brand. The company is led by promoter Anand Kamalnayan Pandit, who brings over 24 years of real estate experience. He has completed twelve projects in the western suburbs of Mumbai, developing over 3.32 million square feet, with eight residential and four commercial projects.
The company’s projects fall into three categories: Greenfield Projects, Redevelopment Projects, and Joint Development Projects. As of November 30, 2024, the company has a developable area of 0.68 million square feet across both residential and commercial properties. It specializes in ultra-luxury and luxury homes, with a growing demand for luxury housing, particularly in the sub-₹2.5 crore segment, which has quadrupled from 3% in 2021 to 16% in 9M 2024.
Sri Lotus Developers focuses on developing ultra-luxury and luxury residential properties, including 2BHK and 3BHK flats in the ₹3 crore to ₹7 crore range ("Luxury Residential Segment") and 3BHK, 4BHK, and larger flats and penthouses priced above ₹7 crore ("Ultra-Luxury Residential Segment"), as well as commercial office spaces ("Commercial Segment"). As of November 30, 2024, the company has three completed projects, six ongoing projects, and seven upcoming projects. The business model emphasizes a customer-centric approach, designing projects that appeal to the market, and leveraging technology in project planning, execution, and customer relationship management. While its focus has been on the western suburbs of Mumbai, the company is expanding into new micro-markets in southern, central, and eastern Mumbai, including Nepean Sea Road, Prabhadevi, and Ghatkopar, to capture emerging opportunities and maintain its position in Mumbai's real estate landscape.
The Company's revenue from operations increased by 176.61% from Rs166.87 crore in Fiscal 2023 to Rs461.57 crore in Fiscal 2024. Profit after tax increased by 635.57% to Rs119.81 crore in Fiscal 2024 to Rs16.29 crore in Fiscal 2023. For the six months ended September 30, 2024, revenue from operations stood at Rs 243.42 crore, and profit after tax stood at Rs 90.63 crore. Monarch Networth Capital Limited and Motilal Oswal Investment Advisors Limited are the bookrunning lead managers and KFin Technologies Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
