Prashanth Tapse of Mehta Equities believes Sri Lotus Developers is well-positioned to capitalise on structural growth drivers in Mumbai’s high-value residential market, backed by its strong execution capabilities and luxury-focused development pipeline.
From an investment standpoint, Tapse recommended allotted investors to ‘Hold’ the stock for the long term to benefit from the premium housing growth story. Non-allotted investors can ‘wait and watch’, as any post-listing corrections may offer a more attractive entry point.The IPO drew overwhelming interest from all categories of investors, closing with a subscription of 74.10 times overall. The Qualified Institutional Buyers (QIB) segment led the charge with a subscription of 175.61 times, followed by Non-Institutional Investors (61.82 times) and retail investors (21.77 times).
The company raised ₹792 crore through the issue, which was open for subscription from July 30 to August 1.
The issue was entirely a fresh issue of 5.28 crore shares.
Out of the funds raised, ₹550 crore will be utilised for its subsidiaries for new projects and investments. The rest will be used for general corporate purposes.
Post the issue, the promoter holding in Sri Lotus Developers will come down to 81.9% from 91.81% currently.Company overview
The Mumbai-based company is a developer of residential and commercial properties. It primarily focuses on redevelopment projects in the ultra-luxury and luxury segments in the western suburbs of Mumbai.
Sri Lotus Developers’ strategy includes aggressive land aggregation via joint development agreements and MD models, and focus on luxury redevelopment in high-value markets in Mumbai. The IPO funds will be used to accelerate this project pipeline over the next 24 months.
The company currently has 13 ongoing or upcoming projects in the western suburbs with a saleable area of 16.9 lakh square feet. It plans to expand its presence in other micro-markets in southern and central regions of Mumbai, such as Nepean Sea Road and Prabhadevi.
As many as 54% of its projects are redevelopment ones, while the remaining 46% are greenfield ones.
Financials
The company has witnessed continued growth in the last three years. It reported a profit after tax (PAT) of ₹228 crore in financial year 2025, compared to ₹119 crore and ₹17 crore in FY24 and FY23, respectively.
It reported a revenue of ₹550 crore in the previous financial year, in comparison to ₹462 crore in FY24 and ₹167 crore in FY23.
Its EBITDA margin expanded to 52.6% in FY25, compared to 34.2% and 12.8% in the previous two fiscal years.
First Published: Aug 6, 2025 9:59 AM IS
