Sri Lotus Developers IPO: The initial public offer for Sri Lotus Developers saw a stellar response from investors by the end of the third day of the bidding process on Friday, August 1. The issue is backed by several prominent names, including Shah Rukh Khan Family Trust, Amitabh Bachchan, Hrithik Roshan, and Ashish Kacholia.
The ₹792 crore issue opened for subscription on July 30 in the price band of ₹140 to ₹150 per share. The issue was entirely a fresh sale of 5.28 crore shares, meaning all the proceeds from the offer would be received by the company.
The company plans to use a major chunk of the proceeds raised for investment in the subsidiaries — Richfeel Real Estate Private Limited, Dhyan Projects Private Limited and Tryksha Real Estate Private Limited — for part-funding the development and construction cost of their ongoing projects. The remaining will be utilised for general corporate purposes.
Majority of the brokerages had a ‘Subscribe’ rating for the Sri Lotus Developers IPO.
Now, with the closure of the public offer, investor focus will shift to Sri Lotus Developers IPO allotment, slated to take place on Monday, August 4.
Sri Lotus Developers IPO Subscription Status
Sri Lotus Developers IPO was subscribed 69.14 times at the end of the bidding process on Friday. The issue received bids for 274.18 crore shares as against 3.965 crore shares on offer.
The retail portion of the IPO was booked 20.28 times, the NII segment 57.71 times and the QIB quota 163.90 times. The portion reserved for employees received 19.84 times bids.
Sri Lotus Developers IPO GMP
The grey market premium (GMP), though strong, has fizzled out over the past few sessions. On Friday, Sri Lotus Developers IPO GMP was ₹38, down from ₹42 in the last session.
However, at the prevailing GMP and the issue price, Sri Lotus Developers’ IPO listing price was pegged at ₹188 apiece, signalling a premium of 25.33%. Investors must not base their investment decision solely on GMP as it is subject to swift changes. They must consider a company’s fundamentals and their own risk appetite.
About Sri Lotus Developers
Sri Lotus Developers is a developer of residential and commercial premises in Mumbai, Maharashtra, with a focus on redevelopment projects in the Ultra-Luxury and Luxury segments in the western suburbs. Its operations are strategically located in Mumbai, one of the largest real estate markets in India.
The company acquired land for its operations in the western suburbs of Mumbai in 2017. The company believes its growth can be attributed to its Promoter, deep understanding of the real estate market, strong design and execution capabilities, sales expertise, and the strength of the “Lotus Developers” brand. Its asset-light model executed through development agreements with landowners and housing societies—minimises capital outlay, supports financial flexibility, and ensures robust operating cash flows.
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