Sri Lotus Developers & Realty Limited has announced the incorporation of a new wholly-owned subsidiary, Asvi Projects Private Limited, marking a significant step in its real estate expansion strategy.

Key Details of the New Subsidiary

Strategic Expansion

The formation of Asvi Projects is aimed at supporting Sri Lotus Developers' growth in real estate and redevelopment activities. This move aligns with the company's strategy to expand its footprint in the real estate sector, potentially opening up new avenues for residential and commercial project development.

Financial Implications

Sri Lotus Developers has invested Rs. 10,00,000 in cash consideration for 1,00,000 equity shares of Asvi Projects, each with a face value of Rs. 10. This initial investment establishes Asvi Projects as a wholly-owned subsidiary, allowing Sri Lotus Developers to maintain full control over its operations and strategic direction.

Regulatory Compliance

The company has informed the stock exchanges about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that shareholders and potential investors are kept informed about significant corporate actions that may impact the company's future performance.

Outlook

While Asvi Projects is yet to commence business operations, its establishment signals Sri Lotus Developers' commitment to growth and expansion in the real estate sector. The move may potentially enhance the company's capacity to undertake new projects and capitalize on emerging opportunities in the property market.

Investors and market watchers will likely monitor how this new subsidiary contributes to Sri Lotus Developers' overall business strategy and financial performance in the coming quarters.

Sri Lotus Developers & Realty Limited, a prominent player in the real estate sector, has announced a significant expansion plan through the creation of five new wholly-owned subsidiaries. The company's board of directors approved this strategic move in a meeting held on October 9, 2025, signaling a robust growth trajectory for the firm.

Subsidiary Formation and Initial Investment

The company plans to incorporate five new wholly-owned subsidiaries:

Each subsidiary will be incorporated with an initial paid-up capital of ₹10.00 lakh, comprising 1,00,000 equity shares of ₹10 each.

Substantial Investment Plan

In a bold move, Sri Lotus Developers & Realty's board has approved a significant investment plan for these new subsidiaries:

• Up to ₹100.00 crore investment in each subsidiary
• Total potential investment of ₹500.00 crore across all five subsidiaries
• Investments to be made through various financial instruments including equity shares, preference shares, and debentures
• Provision for granting unsecured inter-corporate loans to these subsidiaries

This substantial financial commitment underscores the company's confidence in its expansion strategy and the potential of these new ventures.

Expanded Lending Limits

In addition to the new subsidiary formation, the board has also revised the lending limits to its subsidiaries:

• Increased aggregate lending limit to ₹1,400.00 crore
• Funds to be provided in one or more tranches
• Purpose: To support ongoing business operations, expansion, and project-related requirements

Strategic Implications

This expansion move by Sri Lotus Developers & Realty indicates:

1. A strong focus on diversifying its real estate portfolio
2. Potential for entering new geographical markets or real estate segments
3. A long-term growth strategy aimed at strengthening the company's market position

The formation of these subsidiaries is expected to enhance the company's ability to undertake diverse projects and capitalize on various opportunities in the real estate sector.

Investors and market watchers will be keenly observing how these new subsidiaries perform and contribute to the overall growth of Sri Lotus Developers & Realty in the coming years.