Get ready for the Shree Lotus Developers Realty IPO, set to open on July 13th. This upcoming IPO has garnered significant attention, not just for its real estate focus but also due to its surprising connections with Bollywood superstars Amitabh Bachchan, Shah Rukh Khan, and Hrithik Roshan. In this article, we delve into the details of this IPO, including its Grey Market Premium (GMP) momentum and the opportunities it presents for retail investors.
Bollywood Stars’ Connection with Shree Lotus Developers Realty IPO
The names associated with the Shree Lotus Developers Realty IPO are notable. This Mumbai-based real estate company has seen participation from Bollywood superstars Shah Rukh Khan and Amitabh Bachchan in its pre-IPO fundraising rounds. Renowned investor Ashish Kacholia, known for his investments in small-cap and mid-cap companies, has also made a significant strategic investment of ₹50 crore in the company, adding to its positive momentum.
Individual celebrity investments include:
- Shah Rukh Khan Family Trust: ₹10 crore
- Amitabh Bachchan: Approximately ₹10 crore
- Hrithik Roshan: ₹1 crore
Other prominent Bollywood figures such as Ekta Kapoor, Tusshar Kapoor, Rakesh Roshan, Tiger Shroff, Manoj Bajpayee, and Sajid Nadiadwala also acquired smaller stakes in the company prior to the IPO.
Understanding Shree Lotus Developers Realty: Business Model & Strengths
Shree Lotus Developers Realty operates in the premium and ultra-luxury real estate segment, focusing on residential and commercial properties. The company boasts a portfolio of 3.99 million square feet in luxury and ultra-luxury residential and commercial spaces. With over 20 years of experience in the real estate industry, its promoters currently have more than 3.8 million square feet of space under development, alongside several upcoming projects. The company’s brand, active since 2015, traces its segment presence back to 2003, showcasing a diversified portfolio. Shree Lotus Developers is well-positioned to capitalize on the growing demand for ultra-luxury apartments driven by the increasing income of high-net-worth individuals.
Shree Lotus Developers Realty IPO Key Details
The Shree Lotus Developers Realty IPO has an issue size of approximately ₹792 crore. Each share carries a face value of ₹1. The company previously raised ₹400 crore in a pre-IPO round at a cut-off price of ₹150, six months prior to the current IPO. Notably, the IPO is being offered at the same attractive price, indicating potential value. Investors can apply for a minimum of one lot, comprising 100 equity shares, at the cut-off price of ₹150. The IPO consists entirely of fresh capital.
Financial Performance: Revenue & Profit Growth
Shree Lotus Developers Realty has demonstrated robust financial health. The company’s revenue has shown a remarkable upward trend, growing from ₹169 crore to ₹466 crore, and further to ₹1559 crore. Even more impressive is the growth in profit after tax, which surged from ₹17 crore in 2023 to ₹119 crore in 2024, and now stands at a substantial ₹1227 crore. This significant improvement in profitability, combined with a well-considered valuation, contributes directly to the positive sentiment surrounding the IPO.
Grey Market Premium (GMP) & Listing Outlook
Currently, the Grey Market Premium (GMP) for the Shree Lotus Developers Realty IPO is trading at ₹40. This suggests a potential listing gain of approximately 26-27%, translating to an expected gain of around ₹4,000 per lot for investors.
IPO Allocation and Retailer Opportunity
The ₹792 crore IPO has a structured allocation: 50% for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for High Net-worth Individuals (HNIs). Given the medium issue size, retail investors have a significant share. To enhance the chances of allotment, it is recommended to apply with one lot from each family member’s Demat account. The minimum application amount for retail investors is ₹15,000 for one lot. For Small HNI category, ₹2,10,000 is required, and for Big HNI category, ₹10,50,000 is needed. Pre-IPO, promoter holding stood at 91.78%, which will decrease to 81.86% post-IPO. The company will need to further reduce promoter holding to 75% or less within three years, as per SEBI guidelines.
Key Dates for Shree Lotus Developers Realty IPO
Mark your calendars for these important dates regarding the Shree Lotus Developers Realty IPO:
- IPO Opening Date: July 13th
- IPO Closing Date: August 1st
- Important Date (Subscription Review): July 31st (for updates on category-wise subscription)
- Allotment Status: August 4th
- Refund Initiation & Demat Credit: August 5th
- Listing Date (BSE & NSE): August 6th
With its strong celebrity backing, robust financial performance, and a focus on the lucrative ultra-luxury real estate market, the Shree Lotus Developers Realty IPO presents an interesting proposition. Investors should carefully consider the company’s fundamentals, the Grey Market Premium, and their individual investment goals before making a decision.
