Sri Lotus Developers IPO closes with 69x subscription, QIB portion booked 164x

Sri Lotus Developers IPO Day 2

The Rs 792-crore initial public offering of Sri Lotus Developers saw strong investor interest on during its three days of public bidding. The maiden public issue of the company was  subscribed more than 69 times its offer size by the end of its third and final day of bidding (August 1).

The IPO received bids for nearly 274 crore shares, as against the offer size of 3.97 crore shares, according to data on NSE. Retail investors have booked their reserved portion nearly 20 times, while Non Institutional Investors (NII) subscribed their quota more than 58 times. Qualified Institutional Buyers (QIBs) booked their reserved portion nearly 164 times.

Sri Lotus Developers IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of more than 25 percent over the IPO price at Rs 188 apiece, according to Investorgain. The GMP quoted by the site has fallen from the 28 percent quoted earlier during the day.

According to IPO Watch, the unlisted shares of the company were trading with a higher GMP of 29 percent at Rs 194 apiece.

Key things to know about Sri Lotus Developers IPO:

The Mumbai-based real estate developer had launched its IPO to raise Rs 792 crore from the capital markets through a fresh issue of shares at a price band of Rs 140-150 per share. The IPO was open for public bidding from July 30 to August 1.

Investors could bid for a minimum of 100 shares, requiring an investment of Rs 15,000, and in multiples thereafter. The allotments will likely be finalized on August 4, and the shares are scheduled to debut on NSE and BSE on August 6.

 Should you apply?

Bajaj Broking advised investors to subscribe to Sri Lotus Developers’ public issue for the long term. The domestic brokerage said that the firm provides ‘ultra-luxury and luxury homes’, which saw significant growth in demand over the years. “Sri Lotus Developers enjoys numero uno status in ultra-luxury/luxury residential/commercial complexes in and around western suburbs of Mumbai region. For the last three fiscals, the company has posted an average EPS of Rs. 3.83 and an average RoNW of 41.49%,” it added.

Angel One also advised investors to subscribe to the issue for the long term. “At a post-issue P/E of approximately 32.2×, the valuation of Sri Lotus Developers appears reasonable considering its strategic focus on Mumbai’s high-entry-barrier luxury redevelopment segment,” the domestic brokerage said.

Anand Rathi advised investors to subscribe to the IPO for the long term. "At the upper price band company is valuing at P/E of 30.6x to its FY25 earnings, with EV/EBITDA of 24.5x and market cap of ₹73,306 million post issue of equity shares," it said, while adding that the public issue seems to be fully priced.

Also read: Sri Lotus Developers: Will the IPO give investors a luxurious experience?

Choice Capital CEO Ratiraj Tibrewal said the company appears positioned more for long term value than quick listing gains. "Lotus Developers, led by Anand Kamalnayan Pandit, is a Mumbai-based luxury real estate firm focusing on redevelopment, joint development, and greenfield residential and commercial projects in the city's Western Suburbs. With 4 projects completed, 5 under construction, and 11 in the pipeline, it has developed over 3.9 million sq ft, of which 3.8 million sq ft are currently underway. Financially, the company has shown robust growth, with revenue rising from ₹166 crore in FY 2023 to ₹518 crore in FY 2025, alongside EBITDA and PAT margins that consistently outperform peers. In a favorable sector backdrop—where India's luxury residential real estate market is projected to grow at around 11–12% CAGR through 2030, and Mumbai's luxury segment saw record ₹14,750 crore in H1 2025 sales," he said.

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