₹792 Crore IPO of Sri Lotus Developers Backed by Shah Rukh Khan Family Trust Gets SEBI Nod

Sri Lotus Developers and Realty Limited, a real estate firm backed by the Shah Rukh Khan Family Trust and other high-profile Bollywood investors, has received approval from the Securities and Exchange Board of India (SEBI) for its proposed ₹792 crore initial public offering (IPO). The Mumbai-based company had filed its draft red herring prospectus (DRHP) with the regulator in December 2024, and the nod paves the way for the firm to enter the public capital markets.

The IPO will comprise a fresh issue of equity shares with a face value of ₹1 each, aggregating up to ₹792 crore. There is no offer-for-sale (OFS) component, meaning the entire proceeds from the offering will go towards the company’s growth and expansion initiatives.

According to the DRHP, approximately ₹550 crore from the net proceeds will be used to invest in the company’s subsidiaries to partially fund the development and construction of its ongoing residential projects. The balance will be allocated for general corporate purposes, helping the firm maintain financial flexibility and operational momentum as it scales up its presence in Mumbai’s lucrative real estate segment.

What has drawn notable attention to this IPO is the roster of celebrity investors associated with Sri Lotus Developers. Among them are iconic actor Amitabh Bachchan, superstar Hrithik Roshan, filmmaker Rakesh Roshan, and prominent stock market investor Ashish Kacholia. The Shah Rukh Khan Family Trust, managed by the Bollywood actor's family, is also one of the significant shareholders. These stakeholders had participated in a pre-IPO private placement in December 2024, through which the company raised close to ₹400 crore. The shares were issued at ₹150 apiece. 

According to the placement details, Amitabh Bachchan subscribed to nearly 6.7 lakh shares for an investment of ₹10 crore. The Shah Rukh Khan Family Trust received around 6.75 lakh shares for ₹10.1 crore, while Hrithik Roshan acquired 70,000 shares for slightly over ₹1 crore. These investments have amplified interest in the company’s public offering, given the celebrity backing and the rising investor interest in real estate redevelopment ventures in Mumbai.

Sri Lotus Developers focuses on luxury and ultra-luxury residential redevelopment projects in the western suburbs of Mumbai, particularly in areas where land scarcity and high demand for premium housing create attractive redevelopment opportunities. The company’s project portfolio includes 2BHK and 3BHK apartments priced in the ₹3 crore to ₹7 crore range, with penthouses priced above ₹7 crore. As of November 30, 2024, the developer had completed three projects and was actively executing six ongoing developments. In addition, seven upcoming projects are in the pipeline, indicating a healthy order book and robust execution plan for the next few years.

The company’s strategic emphasis on redevelopment within high-value city locations positions it to benefit from the ongoing shift in Mumbai’s real estate market, where demand for modern, high-amenity housing continues to grow, especially in established neighbourhoods. Redevelopment has become a key driver in the city’s real estate sector due to limited availability of new land and the growing need to upgrade ageing residential structures. Sri Lotus Developers appears to be capitalising on this trend with a targeted approach that blends architectural refinement, luxury specifications, and strong marketing driven in part by its celebrity associations.

The IPO will be managed by Monarch Networth Capital Limited and Motilal Oswal Investment Advisors Limited, who are acting as the book-running lead managers. KFin Technologies Limited has been appointed as the registrar to the issue. The equity shares of the company are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).