Bollywood-Backed Sri Lotus Developers Announces Rs. 792 Crore IPO, Files DRHP
Mumbai-based real estate company, Sri Lotus Developers and Realty, has recently filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs. 792 crore through an Initial Public Offering (IPO). The company, which has gained significant attention due to its strong backing from Bollywood celebrities, aims to expand its operations and fund its ongoing and upcoming projects.
Founded by film producer Anand Pandit, Sri Lotus Developers counts top Bollywood figures among its investors. Notable investors in the company include Bollywood superstars Amitabh Bachchan, Shah Rukh Khan, and Hrithik Roshan. Their involvement in the company highlights the growing intersection of the entertainment and real estate sectors. In addition to these prominent actors, other high-profile figures such as Ashish Kacholia, Ekta Kapoor, Tusshar Kapoor, Jeetendra, Tiger Shroff, Rakesh Roshan, Sajid Nadiadwala, and Manoj Bajpayee have also invested in the company.
Earlier this month, Sri Lotus Developers raised about Rs. 408 crore through a private placement. During this placement, Amitabh Bachchan acquired 6.7 lakh shares for Rs. 10 crore, Shah Rukh Khan’s Shah Rukh Family Trust purchased 6.75 lakh shares for Rs. 10.1 crore, and Hrithik Roshan bought 70,000 shares for over Rs. 1 crore. This strong support from the entertainment industry reflects the confidence these investors have in the company’s growth potential.
Use of IPO Proceeds
The net proceeds from the IPO will be primarily used to fund the company’s development and construction activities. Of the Rs. 792 crore being raised, approximately Rs. 550 crore will be allocated to the funding of ongoing projects, subsidiaries, and other corporate purposes. This will allow the company to further its goal of becoming a leading player in the real estate sector, as it looks to expand its portfolio and continue to develop residential and commercial spaces.
Sri Lotus Developers has a significant footprint in the real estate sector with a current developable area of 0.68 million square feet. This area is divided between residential and commercial properties, with three projects already completed. The company has six projects under construction and seven more in the pipeline. These ongoing and upcoming developments reflect the company’s ambitious plans for growth in a competitive market.
Financial Performance and Future Outlook
As of the quarter ending September 2024, Sri Lotus Developers reported a revenue from operations of Rs. 243.43 crore. The company also reported a net profit attributable to the parent company of Rs. 90.5 crore. These figures demonstrate the company’s strong financial position and its potential for long-term success in the real estate market.
The company’s promoters, including Anand Pandit, Roopa Anand Pandit, and Ashka Anand Pandit, hold 80.76% of the pre-IPO paid-up equity share capital. The IPO, which will be a fresh issue of equity shares with a face value of Re. 1 each, will not have any offer-for-sale component. This means that the company’s existing shareholders will not be selling any of their holdings, and the funds raised through the IPO will go directly to the company for its business expansion.
The proposed issue will be made through the book-building process, a popular method used for determining the price of shares in an IPO. This process allows the market to set the price of shares based on demand and supply, ensuring that investors get fair value for their money. The IPO is expected to attract significant investor interest, particularly given the high-profile backing the company enjoys from Bollywood celebrities.
The Growing Influence of Bollywood in Real Estate
The involvement of Bollywood celebrities in real estate ventures is becoming increasingly common, as actors and filmmakers look to diversify their portfolios and tap into the lucrative real estate market. Sri Lotus Developers’ strong celebrity backing has already generated significant buzz in the industry, with many seeing it as a promising opportunity for growth. The company’s ability to raise substantial funds through private placements and its upcoming IPO is a testament to the trust these high-profile investors place in its leadership and strategy.
Real estate remains one of the most attractive sectors for investors in India, particularly in the wake of increasing urbanization and the growth of the middle class. With its mix of residential and commercial projects, Sri Lotus Developers is well-positioned to capitalize on these trends and emerge as a leader in the industry.
Sri Lotus Developers has a diverse portfolio, which includes residential as well as commercial developments. The company is involved in multiple stages of the real estate development process, from planning and design to construction and completion. The firm’s current projects include high-end residential developments and commercial spaces, both of which cater to a growing demand for quality real estate in Mumbai and other metropolitan areas.
The company’s residential developments are particularly aimed at the luxury segment, reflecting the aspirations of a rapidly growing urban population. Sri Lotus Developers also focuses on delivering high-quality commercial spaces that meet the needs of modern businesses and professionals. The company’s commitment to quality and timely delivery has been key to its success so far.
