August 3, 2025

Sri Lotus Developers' IPO has captured significant attention as it closed with a remarkable subscription rate, indicating robust demand among all investor categories. The subscription rate reached 69.14 times overall, showcasing a strong interest in the company's equity shares. The retail portion of the offering was subscribed 20.28 times, while non-institutional investors (NII) showcased an impressive 57.71 times bidding rate. The highlight of the IPO was the participation from qualified institutional buyers (QIBs) who led the charge with an overwhelming subscription rate of 163.90 times. Celebrity investors including the likes of Shah Rukh Khan and Amitabh Bachchan have enhanced the appeal of this IPO. Their investments have added a star power factor that seems to be resonating with potential investors. The Shah Rukh Khan Family Trust holds 675,000 shares worth Rs 10.1 crore during the IPO. With an expected listing price of Rs 192, King Khan could see profits of around Rs 2.83 crore. On the other hand, Amitabh Bachchan acquired 666,670 shares valued at Rs 10 crore, and his potential gains are expected to be around Rs 2.8 crore upon listing. The Roshan family, comprising Hrithik and Rakesh Roshan, also invested by holding 70,000 shares each, which could yield each of them Rs 29.40 lakh. Veteran investor Ashish Kacholia invested an impressive Rs 50 crore in 3,333,300 equity shares, potentially translating to gains of about Rs 13.99 crore at the expected listing price. The IPO will likely be priced at Rs 192, reflecting a grey market premium (GMP) of 28%, or an increase of Rs 42 from the share price at the IPO, hinting at strong market confidence. If this momentum continues, those who strategically invested early could find themselves benefitting immensely. Sri Lotus Developers secured Rs 399.20 crore in a private placement before it proceeded to file its Draft Red Herring Prospectus (DRHP) in December 2024. Market interest soared further when other notable names in Bollywood, such as Ektaa Ravi Kapoor and her family, joined in. An important insight into Sri Lotus Developers' prominence in the market is its manager. Anand Kamalnayan Pandit, the promoter of the company, is also known as a film producer and distributor. This connection brings credibility and visibility, attracting not just individual investors but also corporate involvement. The upcoming IPO, structured as a book building issue, is aiming to raise Rs 792 crore. The company, incorporated in February 2015, focuses on developing residential and commercial properties in Mumbai, particularly within the luxury segment. The firm specializes in redevelopment projects which are in high demand given Mumbai's expanding urban landscape. As of the latest report on June 30, 2025, Sri Lotus Developers boasts a developable area of approximately 0.93 million square feet across its residential and commercial properties. With this strong backing and sound investment strategy, the future looks promising for both the company and its esteemed investors. It is important to note that while the enthusiasm surrounding this IPO is palpable, potential investors should exercise caution and base their decisions on comprehensive market analysis and personal investment goals. As always, expert opinions are varied, and investors are encouraged to stay informed through reliable market sources.

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Tags: Sri lotus developers, Ipo, Shah rukh khan, Amitabh bachchan, Investments, Grey market premium,