Mumbai-based high-end real estate company Shree Lotus Developers' Initial Public Offering (IPO) has opened for subscription on July 30th. The issue will remain open until August 1st. The company has fixed a price band of ₹140 to ₹150 per share for its public issue. Through this IPO, the company plans to raise a total of ₹792 crore. This includes the offering of 5.28 crore new equity shares in the market. For retail investors, one lot consists of 100 shares.
Strong Performance in the Grey Market
Ahead of the IPO, Shree Lotus Developers' shares are showing good strength in the grey market. According to market sources, the company's shares are trading at ₹194, which is approximately ₹44 higher than the upper end of its price band. This translates to a grey market premium of about 29 percent.
Bollywood's Confidence in This Real Estate Brand
A notable aspect of this IPO is that several big names from Bollywood have already invested in it. The celebrities whose names have surfaced include Shah Rukh Khan, Amitabh Bachchan, Hrithik Roshan, Ajay Devgn, Tiger Shroff, Ekta Kapoor, Sara Ali Khan, and Rajkummar Rao. All of them invested in the company through pre-IPO placement in December 2024. A total of ₹400 crore was raised in that round.
Major Investors Have Also Shown Interest
Not just celebrities, but also major investors from the world of the stock market have expressed confidence in Shree Lotus Developers. In this funding round, Ashish Kacholia invested ₹50 crore alone. Besides him, well-known firms like Jagdish Master and D.R. Choksey Finserve have also invested in this company.
Who is at the Helm of the Company?
The Chairman and Managing Director of Shree Lotus Developers is Anand Kamalnayan Pandit. He is a successful real estate developer as well as a film producer. He has produced films like Sarkar 3, Great Grand Masti, and Total Dhamaal. He also owns a film studio named Anand Pandit Motion Pictures.
Where Will the Funds Raised from the IPO Be Used?
The company has informed that the funds raised from the IPO will be used for investment in its three subsidiary companies. These include Richfeel Real Estate Private Limited, Dhyan Projects Private Limited, and Triksha Real Estate Private Limited. These companies have ongoing projects named Amalfi, The Arcadian, and Varun. The raised amount will be invested in the construction expenses of these projects.
In addition, a portion will also be used to meet the company's general business operations and day-to-day needs.
Good Response Already Received from Anchor Investors
Prior to the IPO opening, Shree Lotus Developers had already raised ₹237 crore from anchor investors. This clearly indicates a positive inclination from institutional investors towards the company. The issue will be listed on both the BSE and NSE exchanges. The allotment of shares is scheduled for August 4th, and the listing is fixed for August 6th.
IPO Valuation and Figures
Shree Lotus Developers' valuation is estimated at ₹7330 crore at the upper end of the price band. Based on the financial year 2024-25 earnings, the company's Price to Earnings ratio is stated to be 30.6 times and the EV/EBITDA ratio is 24.5 times. Brokerage firm Anand Rathi has considered this IPO suitable for long-term investment and has given it a Subscribe rating.
