• Notification Date: 27-12-2024
• Notification No: N/A

Ashish Kacholia-backed Sri Lotus Developers files DRHP to raise ?792 crore via IPO

India's first luxury affordable housing project-backed Sri Lotus Developers and Realty in Mumbai, have finally submitted its draft red herring prospectus, or DRHP, with the country's market regulator, SEBI, to raise as much as ?792 crore, that too through an IPO. Indeed that has been put before SEBI on 26 December 2023, which became a move by which that company aims to expand their footprints further in that rapid growing realty sector.

For this particular issue, since there is no OFS, the company will issue the full amount of ?792 crore. Mainly, the amount directly goes into supporting the working of some on-going projects by the company's subsidiaries such as Richfeel Real Estate Pvt. Ltd., Dhyan Projects Pvt. Ltd., and Tryksha Real Estate Pvt. Ltd.. These funds will contribute ?550 crore toward the construction and development of three key projects, namely Amalfi, The Arcadian, and Varun.

Incorporated in 2015, Sri Lotus Developers handles residential and commercial properties largely in the Western suburbs of Mumbai. Its portfolio involves over 7 million square feet in projects that are under construction or completed. Sri Lotus registered a net profit of ?90.6 crore during the quarter ending September 2024 and a net worth of ?398.29 crore.

The company has given a fabulous growth profile with an annual net profit of ?119.8 crore for FY 2024 against ?16.28 crore in 2023. Major risk to which the company is exposed is its dependence upon the Western Suburbs of Mumbai. Any regional economic downturns, regulatory changes, or natural disasters can affect the sales and pricing of the projects.

Ashish Kacholia back the company, Sri Lotus Developers is all set for sizzling debut. Monarch Networth Capital and Motilal Oswal Investment Advisors are the book-running lead managers for the issue and KFin Technologies is registrar.

As the IPO approaches, all eyes would be on how this realty firm positions itself in this competitive Mumbai real estate market.