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IPO Details

• IPO Opening Date: July 30, 2025.
• IPO Closing Date: August 1, 2025.
• IPO Size: The issue is for ₹792.00 crores.
• Fresh & OFS: It is entirely a fresh issue of 5.28 crore shares, with no Offer for Sale.
• IPO Price Band: The price band is set at ₹140 to ₹150 per share.
• Lot Size: The lot size for an application is 100 shares. The minimum investment for retail investors is ₹14,000 (100 shares) or ₹15,000.
• Allocation to Investors:
  • QIB (Qualified Institutional Buyers): 2,63,33,333 shares (49.86% of total shares offered). Up to 60% of this portion may be allocated to Anchor Investors.
  • NII (Non-Institutional Investors): 79,00,000 shares (14.96%).
  • Retail Individual Investors (RII): 1,84,33,333 shares (34.90%).
  • Employees: 1,47,059 shares (0.28%) are reserved for employees, offered at a discount of ₹14.00 per share to the issue price.
• Lead Managers: Motilal Oswal Investment Advisors Limited and Monarch Networth Capital Ltd..
• Registrar: Kfin Technologies Limited.

About the Company

• History: Sri Lotus Developers and Realty Limited (SLDRL) was incorporated in February 2015 as “AKP Holdings Private Limited” and later changed its name.
• Main Products/Services: The company is a real estate developer specializing in redevelopment projects within the ultra-luxury and luxury segments of residential and commercial properties in Mumbai, Maharashtra. This includes 2BHK and 3BHK flats (₹3-₹7 crore) for luxury residential, 3BHK, 4BHK, and larger units including penthouses (above ₹7 crore) for ultra-luxury residential, and premium office spaces.
• Sales & Manufacturing Units: The company operates in key micro markets of Mumbai, including Juhu, Andheri, Versova, and Bandra. As of June 30, 2025, it has 4 Completed Projects, 5 Ongoing Projects, and 11 Upcoming Projects. Its focus is primarily on the western suburbs of Mumbai, with some upcoming projects in South Central Mumbai and Eastern Suburbs.
• Employees: The company had 146 employees on its payroll as of June 30, 2025. The average number of employees for FY25 was 105.5.
• Promoters: The promoters of the company are Anand Kamalnayan Pandit, Roopa Anand Pandit, and Ashka Anand Pandit.
• Branches/Network: The company’s operations are strategically located in Mumbai, Maharashtra. Its registered and corporate office is in Juhu, Mumbai.

Financials

(Restated Consolidated Figures – Amounts in ₹ Crore)

Post IPO Market cap: ₹7330.65 Cr. Market cap/Sales (FY25): 12.87 times P/E FY24: 61.48 times. P/E FY25 (annualized): 32.17 times.

The company has shown a spectacular performance from FY24 onwards, with revenue increasing significantly and profit after tax rising sharply between FY23 and FY25. This growth has been supported by high margins and an asset-light model.

Anchor Investors Details:

Sri Lotus Developers and Realty raised ₹237 crore from 16 anchor investors. The top 10 anchor investors with their percentage allocations are: Societe Generale-ODI (18.99%), Tata Mutual Fund-Tata Small Cap Fund (14.77%), Mahindra Manulife Multi Cap Fund (8.74%), Nippon Mutual Fund (6.33%), Samsung India Mid & Small Focus Securities Master Investment Trust (5.06%), Nuvama Asset Management Limited (4.43%), HSBC Mutual Fund (4.43%), SBI Mutual Fund (4.43%), Citigroup Global Markets Mauritius Private Limited (3.80%), and Nomura Singapore Limited (3.80%). The remaining anchor investors include Future Generali India Life Insurance Co. Ltd., Aditya Birla Sun Life Insurance Company Limited, and four others, collectively holding the balance of the anchor book. Total allocation to mutual funds is 33.76%

Salient points

• Use of Funds: The company intends to utilize ₹550.00 crores from the IPO proceeds for part-funding development and construction costs of three ongoing projects: Amalfi, The Arcadian, and Varun. The balance funds will be used for general corporate purposes and working capital. No proceeds will be used to recoup loans to associates/related parties or repay promoter loans.
• Business Scenario: Mumbai is considered a “gold mine” for real estate, with redevelopment being the primary way forward due to limited land availability, especially in the western suburbs. The Mumbai Metropolitan Region (MMR) has been ranked first among the top Indian residential real estate markets from 2019 to 2023 in terms of supply, absorption, and average selling price. The current market in Juhu shows limited new supply and robust demand, leading to price appreciation.
• Business Operations: The company’s business primarily involves society redevelopment projects, where old buildings are redeveloped into larger, more luxurious spaces shared with existing tenants. They operate on an asset-light model through development agreements, eliminating the need for land purchases. The company emphasizes its end-to-end capabilities and timely project completion.
• Revenue Model: Sri Lotus Developers commands a premium of approximately 22% on its quoted prices compared to the average in the Juhu market due to strong brand recall, construction quality, timely execution, and customer satisfaction. The average realization higher than some peers.
• Business Strategy: The company limits its marketing expenditure, as its high-end product and high ticket size reduce the need for extensive campaigns. Their products are known for being constructed and delivered quickly and efficiently. Their clients are considered their brand ambassadors. The company also plans to selectively expand its presence in the commercial real estate segment, particularly in Andheri West.
• Litigations: As of the Red Herring Prospectus date, there are no criminal proceedings, tax proceedings, statutory or regulatory proceedings, or disciplinary actions by SEBI or Stock Exchanges against the company or its subsidiaries
• Revenue Split by Region: The company’s operations are heavily concentrated in the Western Suburbs of Mumbai. Some upcoming projects are also located in South Central Mumbai and Eastern Suburbs.
• Export/Import: Information on export/import activities is not explicitly mentioned in the provided sources.
• Revenue Split by Product or Service: The revenue breakdown is categorized into Luxury Residential Segment, Ultra Luxury Residential Segment, and Commercial Segment.
• Capacity Utilisation: Information on specific capacity utilization figures is not explicitly mentioned in the provided sources.
• Expansion Strategies: The company plans to grow its developable area significantly, from 2 lakh square feet in ongoing projects to over 16 lakh square feet in upcoming projects. This expansion focuses on strengthening its position in the ultra-luxury and luxury segments and selectively expanding in the commercial segment, particularly in Andheri West. The company has a strong pipeline of 5 ongoing and 11 upcoming projects.
• Clients: The company’s clients include many celebrities who reside or have offices in their operating areas. These clients have experienced the product quality and journey, becoming both clients and investors. This has contributed to the company’s high sales velocity.
• Working Capital & Inventory Days, Receivables Trend: While funds are allocated for working capital, the provided sources do not explicitly discuss detailed trends for working capital days, inventory days, or receivables.
• CAGR Profits/Margins last 3 years: Revenue increased by 22% (FY25 over FY24) and PAT rose by 91% (FY25 over FY24). PAT margins increased from 9.76% (FY23) to 41.46% (FY25). RoCE margins improved from 5.29% (FY23) to 27.22% (FY25).

Peers

(Amounts in ₹ Crore)

Management Commentary

• Lotus Developers is redefining luxury living and elevating lifestyles in Mumbai’s micro-markets of Juhu, Andheri, Versova, and Bandra, now also expanding into town.
• Their core philosophy is to provide luxury spaces to people aspiring for a luxurious lifestyle.
• Approximately 90% of their projects are society redevelopment projects, where old buildings are transformed into larger, more luxurious spaces shared with existing tenants.
• Their marketing strategy is to limit marketing expenditure; instead, their high-quality, efficiently and quickly delivered, high-end products, along with a high ticket size, mean people often await their offerings, and their clients serve as their brand ambassadors.
• The leadership mantra is “lead or follow or get out of my way”.
• The company is growing significantly, with over 2 lakh square feet in ongoing projects and more than 16 lakh square feet in upcoming projects.

Opinion

Based on analyst opinions and macro industry trends, I may apply to the IPO. However anchor book has been avverage and there may bee unnecessary hype around the IPO due to film personalities being invested in it.

Post IPO equity capital: ₹48.87 crore. P/E for FY 24: 61.48 times. P/E FY25 (annualized): 32.17 times.

The company holds a strong position in the ultra-luxury and luxury residential/commercial complexes in Mumbai’s western suburbs and has shown spectacular financial performance since FY24. Its asset-light redevelopment model, combined with its cash-rich position and superior margins, justifies its IPO pricing. The IPO is driven by strong luxury housing demand in Mumbai’s western suburbs, with a moat from its asset-light redevelopment model and high-profile pre-IPO investors like Shah Rukh Khan, Amitabh Bachchan, and Ashish Kacholia.

• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.