Sri Lotus Developers and Realty, backed by Bollywood stars and investor Ashish Kacholia, has received Sebi approval for a ₹792 crore IPO. The Mumbai-based company specializes in redevelopment projects in the western suburbs that are ultra-luxury or luxury. On December 24, 2024, the company filed draft papers with the Sebi.

Key Highlights

Sri Lotus Developers, backed by Ashish Kacholia and Bollywood celebrities, has received SEBI approval for a ₹792 crore IPO, entirely comprising fresh equity shares.

The IPO proceeds will fund ongoing luxury residential projects in Mumbai, including Amalfi, The Arcadian, and Varun, through investments in subsidiaries.

The public issue consists of new shares with a face value of ₹1 each, totaling ₹792 crore in value. There is no offer to sell (OFS) component. 

The draft red herring prospectus (DRHP) states that the company intends to invest ₹550 crore from the net issue proceeds in subsidiaries Richfeel Real Estate, Dhyan Projects, and Tryksha Real Estate to fund ongoing projects such as Amalfi, The Arcadian, and Varun. The remaining funds will be allocated to general corporate purposes.

The business raised about ₹400 crore in December 2024 by privately placing 26.61 million shares at a price of Rs 150 each. Prominent Bollywood figures like Amitabh Bachchan, the Shah Rukh Khan Family Trust, and Hrithik Roshan were among the principal investors. For ₹50 crore, investor Ashish Kacholia purchased 3.3 million shares.

KFin Technologies Limited is the issue's registrar, per DRHP. The lead managers for bookkeeping are Motilal Oswal Investment Advisors Limited and Monarch Networth Capital Limited. It is suggested that the shares be listed on the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE).