IPO Details
Issue Date
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IPO Size
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Schedule of Sri Lotus Developers & Realty Ltd IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Sri Lotus Developers and Realty Ltd IPO
The initial public offering (IPO) of Sri Lotus Developers and Realty Limited consists of an issue of fresh equity shares aggregating up to ₹792 crore. The book running lead managers are Monarch Networth Capital Limited and Motilal Oswal Investment Advisors Limited.
Objectives of Sri Lotus Developers and Realty Ltd IPO
The net proceeds from the issue, after deducting issue expenses applicable to the offer, will be utilised for two key objectives:
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Investment in the company's subsidiaries - Richfeel Real Estate Private Limited, Dhyan Projects Private Limited and Tryksha Real Estate Private Limited - for partially funding the development and construction costs of ongoing real estate projects named Amalfi, The Arcadian and Varun.
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General corporate purposes.
The public listing is expected to enhance the company's visibility, brand image and provide a market for trading of shares to existing shareholders.
Sri Lotus Developers and Realty Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | ₹792 crores |
Offer for Sale | NA |
EPS (in ₹) for FY 24 | 3.00 |
Sri Lotus Developers and Realty Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Investors (NIIs) | Not less than 15% of the net issue |
Retail-individual Investors (RIIs) | Not more than 35% of the net offer |
Industry Outlook
Key Drivers
Redevelopment Boom: Mumbai’s limited land availability drives demand for redevelopment projects, contributing ~40% of new residential supply in FY24
Affordable Housing: PMAY initiatives boosted demand for mid-segment housing (₹5–15 lakh price range).
Commercial Real Estate: Post-pandemic hybrid work models increased demand for flexible office spaces.
Company Information
Sri Lotus Developers Realty Limited is a Mumbai-based developer that specialises in building high-end homes and commercial spaces, mainly focusing on rebuilding older properties in the city's western suburbs. Led by Promoter Anand Kamalnayan Pandit, with over 24 years of real estate experience, the company focuses on customer satisfaction by designing projects that enhance lifestyles and maximise market appeal. It also makes use of modern technology like 3D modelling and virtual reality to plan and show its projects better, and its work includes starting new projects from scratch, rebuilding existing ones, and partnering with landowners to develop properties.
Sri Lotus Developers & Realty Ltd Strengths
Strategic Position
The company has a strong position in the luxury residential real estate market in Mumbai's western suburbs. It focuses on the ultra-luxury and luxury housing segments in this region. The company's strategy centers on providing high-end homes tailored to its customers' preferences.
It has also built a robust pipeline of luxury housing projects in prime locations across the western suburbs. This allows it to regularly launch new projects catering to demand from ultra-high net worth individuals in Mumbai.
Asset-Light Operating Model
The company uses an asset-light operating model to develop its projects. It enters into development agreements with landowners instead of acquiring land outright. This enables the company to undertake new projects with limited upfront capital investment in land purchase.
The company's agreements entitle it to a share of the revenue or profits from the project. The landowner receives the remaining share. This model generates strong cash flows from operating activities as the company avoids large cash outflows for land acquisition.
Timely Project Execution
The company has robust processes for project planning and execution. This enables it to complete projects on schedule, within approved budgets. The company's timeliness and cost controls help ensure project profitability and return on investment.
The company closely monitors construction progress across all project phases - planning, approvals, procurement, and customer handover. Its project managers have the expertise to proactively identify and resolve potential issues that may impact schedule or cost.
The company's effective vendor management ensures construction materials and contract labour are secured in a timely, cost-efficient manner. Its construction expertise also facilitates complex verticals building upward to 50+ floors.
Risks of Sri Lotus Developers and Realty Ltd IPO
- Regional Concentration Risk
The company's current projects are concentrated in Mumbai's Western Suburbs. This geographic concentration exposes the company to local real estate market conditions. Downturns in the Western Suburbs micro-markets could adversely affect project sales and pricing.
- Contractor Risk
The company relies completely on third-party construction contractors. Underperformance by contractors could affect project timelines, quality, and budgets leading to cost overruns.
- Input Cost Risk
Rising prices or inadequate supply of key construction materials and labour could increase project costs and cause construction delays. This may require the company to incur additional expenses to ensure timely completion.
- Unsold Inventory Risk
As of November30, 2024, the company has a total of 35 unsold units in their list of completed projects and 248 unsold units out of all their ongoing projects. If they are not able to sell our project inventories in a timely manner, then it may adversely affect hurt their business, results of operations and financial condition.
All Financial Information about Sri Lotus Developers & Realty Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Sri Lotus Developers Realty Ltd | Arkade Developers Limited | Keystone Realtors Limited | Suraj Estate Developers Limited | Sunteck Realty Limited | Mahindra Lifespaces Limited | Hubtown Limited |
|---|---|---|---|---|---|---|---|
Revenue from Operations in ₹ crores | 461.57 | 634.73 | 2222.22 | 412.21 | 564.84 | 212.09 | 257.72 |
Market price as on December 23, 2024 | NA | 162.80 | 687.60 | 580.00 | 507.90 | 462.95 | 267.60 |
EPS Basic in ₹ for FY 24 | 3.00 | 8.08 | 9.85 | 19.39 | 4.99 | 6.34 | (11.16) |
NAV per share in ₹ for FY 24 | 4.24 | 21.28 | 157.85 | 120.43 | 213.28 | 120.82 | 157.38 |
IPO Registrar and Book Running Lead Manager
Registrar - KFIN Technologies Limited Book Running Lead Managers - Monarch Networth Capital Limited, Motilal Oswal Investment Advisors Limited
Business Model
Sri Lotus Developers and Realty Limited operates primarily in the real estate sector, focusing on redevelopment projects in Mumbai's Western Suburbs, leveraging its expertise in housing society redevelopment to acquire and develop properties. The company is dependent on third-party contractors for construction services and faces risks from delays, cost overruns, and unsold inventory. Its business model is heavily reliant on the performance of the local real estate market, with significant exposure to regulatory, economic, and supply chain challenges.
Company Growth Trajectory
The company's growth trajectory is focused on strengthening its presence in the western suburbs, particularly in the luxury housing sector. By adopting an asset-light strategy, it plans to efficiently manage resources through redevelopment and joint development projects, capitalising on established relationships with housing societies and landowners.
Expansion plans include entering new areas like the south-central and eastern regions of Mumbai, such as Prabhadevi and Ghatkopar, as well as further developing other parts of the western suburbs like Bandra, all while leveraging its strong brand and reputation.
Additionally, the company is focused on the commercial real estate market in Andheri West, a prime business district, and plans to develop more high-end properties there due to its favorable business location and steady market growth. These strategic moves position the company well for capturing new opportunities in both residential and commercial sectors across Mumbai, driving its growth forward.
Sri Lotus Developers and Realty Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 466.18 | 169.94 | 103.18 |
Profit Before Tax (in ₹ crores) | 161.78 | 22.36 | 16.98 |
EBITDA (in ₹ crores) | 158.54 | 20.84 | 16.89 |
EPS | 3.00 | 0.42 | 0.32 |
Sri Lotus Developers and Realty Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 161.78 | 22.36 | 16.98 |
Net Cash from (used in) Operating Activities (in ₹ crores) | 46.15 | 71.13 | (111.26) |
Net Cash from (used in) Investing Activities (in ₹ crores) | 27.66 | (14.77) | 36.15 |
Net Cash from (used in) Financing Activities (in ₹ crores) | (44.27) | (11.03) | 87.17 |
Cash and Cash Equivalents (in ₹ crores) | 29.54 | 45.32 | 12.06 |
How to Check Allotment Status of Sri Lotus Developers and Realty Ltd IPO?
1. Visit the Registrar's Website
Go to the official website of KFin Technologies, the registrar for this IPO. KFin's website has a page for checking IPO allotment status. On this page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then click the 'Submit' button. Your allotment status will be displayed.
The KFin IPO allotment status page is: https://ris.kfintech.com/ipostatus/
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Sri Lotus Developers and Realty Ltd' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search'
Your Sri Lotus IPO allotment status will be displayed.
- Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Sri Lotus IPO allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit'. Your Sri Lotus IPO bid and allotment details will be displayed.
How to Apply for Sri Lotus Developers and Realty Ltd IPO?
Here are the steps to apply for Sri Lotus Developers and Realty Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Sri Lotus Developers & Realty Ltd IPO FAQs
What is the Sri Lotus Developers and Realty Ltd IPO?
The IPO of Sri Lotus Developers and Realty Ltd consists of a fresh issue of equity shares worth ₹792 crores. The shares are proposed to be listed on both the BSE and NSE, and the price band for the IPO will be determined through a book-building process as specified in the Draft Red Herring Prospectus.
Is Sri Lotus Developers and Realty IPO coming?
Yes, Sri Lotus Developers and Realty Ltd is expected to come up with its IPO soon.
Who is the Chairman of Sri Lotus Developers and Realty?
Anand Kamalnayan Pandit is the chairman and managing director of Sri Lotus Developers and Realty Limited.
