Sri Lotus Developers & Realty Limited has made strategic investments in five wholly owned subsidiaries, investing a total of ₹50 lakhs to expand its real estate operations. The company announced these investments through initial share subscriptions made on March 04, 2026, as part of its business expansion strategy in the real estate development sector.

Investment Details

The company has invested ₹10 lakhs each in five newly incorporated subsidiaries, acquiring 100% shareholding in each entity through cash consideration. All five subsidiaries have been established with identical capital structures and business objectives.

Capital Structure and Business Focus

Each subsidiary has been incorporated with an authorized capital of ₹10 lakhs, comprising 1,00,000 equity shares with a face value of ₹10 each. The paid-up capital for each entity stands at ₹10 lakhs, representing full subscription to the authorized capital.

All five subsidiaries will operate in the real estate sector, specifically focusing on:

• Development and redevelopment of residential projects
• Development and redevelopment of commercial projects
• Real estate business expansion initiatives

Regulatory Compliance

The investments have been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that no governmental or regulatory approvals were required for these acquisitions, as they involve newly incorporated wholly owned subsidiaries.

Strategic Rationale

The establishment of these wholly owned subsidiaries represents Sri Lotus Developers & Realty's strategic initiative to expand its business operations in the real estate sector. Since all subsidiaries are newly incorporated entities, they are yet to commence business operations and currently have no turnover or operational history.

The company has indicated that these subsidiaries will serve as vehicles for expanding its presence in both residential and commercial real estate development projects, aligning with the parent company's core business activities in the real estate sector.

Sri Lotus Developers & Realty Limited has successfully completed its postal ballot process and subsequently granted 12,06,500 stock options to eligible employees under the Employee Stock Option Scheme 2024. The special resolution for extending ESOP benefits to subsidiary employees passed with 98.23% approval, followed by the Nomination and Remuneration Committee's approval for the stock option grant on April 01, 2026.

Stock Option Grant Details

The Nomination and Remuneration Committee approved the grant of 12,06,500 stock options through a circular resolution on April 01, 2026. Each option is convertible into one fully paid-up equity share with a face value of Re. 1 each, priced at Rs 75 per option.

The options will start vesting after a period of one year from the date of grant, with all options exercisable within five years from the respective vesting dates. Shares arising from option conversion will rank pari-passu with existing equity shares.

Postal Ballot Results and Participation

The postal ballot concluded on March 27, 2026, after a month-long e-voting period that commenced on February 26, 2026. Out of 102,038 total shareholders on record date February 20, 2026, the voting witnessed significant participation across different categories.

The resolution required a special majority, which was achieved comfortably with votes in favor being more than three times the votes cast against it.

Regulatory Compliance and Process

The company followed all regulatory requirements under Section 110 of the Companies Act, 2013, and SEBI Listing Regulations. CS Mannish L. Ghia from M/s. Manish Ghia & Associates served as the appointed scrutinizer, ensuring transparent and compliant voting procedures.

Corporate Governance and Strategic Impact

The ESOP grant follows the company's strategic move to align employee interests across the group structure while maintaining competitive talent retention practices. The options are subject to reasonable adjustments in case of corporate actions such as rights issues, bonus issues, mergers, or sale of divisions in accordance with ESOP 2024 provisions.

The voting results and scrutinizer's report have been uploaded on the company's website at www.lotusdevelopers.com/investor-relations and CDSL's platform, ensuring complete transparency for all stakeholders. This successful implementation reinforces shareholder confidence in the company's strategic direction and employee welfare initiatives.