Sri Lotus Developers Launches Rs 792 Crore IPO, Attracts 29% Grey Market Premium
Sri Lotus Developers and Realty, a Mumbai-based luxury real estate developer, has opened its IPO to raise Rs 792 crore. The issue, priced at Rs 140-150 per share, closes on August 1. It's commanding a 29% grey market premium. The company plans to use funds for ongoing projects through subsidiaries. Financial performance shows 91.6% YoY net profit growth to Rs 228 crore in FY25. The firm focuses on luxury real estate in Mumbai's western suburbs, with 16 projects in prime locations. Analysts have mixed recommendations, with some suggesting long-term subscription and others recommending for listing gains.
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Mumbai-based luxury real estate developer Sri Lotus Developers and Realty has opened its Initial Public Offering (IPO) for subscription, aiming to raise Rs 792 crore from the market. The IPO, which will close on August 1, has already garnered attention with a significant grey market premium.
IPO Details
The fresh issue comprises 5.28 crore shares priced in the band of Rs 140-150 per share. Investors can bid for a minimum lot size of 100 shares. Notably, the company is commanding a grey market premium of Rs 44, representing a 29% increase over the issue price, indicating strong investor interest.
Utilization of Funds
Sri Lotus Developers plans to utilize the IPO proceeds to fund ongoing projects through its subsidiaries. Key projects that will benefit from this capital infusion include:
- Amalfi
- The Arcadian
- Varun
A portion of the funds will also be allocated for general corporate purposes.
Financial Performance
The company has demonstrated robust financial growth:
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Net Profit (Rs Crore) | 228.00 | 119.00 | 91.6% |
| Revenue (Rs Crore) | 550.00 | - | - |
| EBITDA Margin | 52.60% | - | - |
Sri Lotus Developers more than doubled its net profit in FY25 compared to the previous year, showcasing strong financial performance.
Company Profile
Sri Lotus Developers and Realty focuses on the luxury real estate segment in Mumbai's western suburbs. The company's portfolio includes:
- 16 projects across prime locations
- Presence in Juhu, Andheri, Bandra, Prabhadevi, and Ghatkopar
- Target segment: Housing units priced at Rs 2.5 crore and above
A key strength of the company is its track record of completing projects ahead of RERA (Real Estate Regulatory Authority) timelines.
Analyst Recommendations
- Anand Rathi has issued a 'Subscribe - Long Term' recommendation, despite noting that the company is fully valued at 30.6 times FY25 earnings.
- Arihant Capital recommends the IPO for listing gains, highlighting the company's efficient project completion record.
Investors are advised to conduct their own research and consider their financial goals before making investment decisions.
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