Sri Lotus Developers, M&B Engineering shares likely to list with up to 25% premium on Wednesday; check post-listing strategies

Sri Lotus Developers, M&B Engineering shares likely to list with up to 25% premium on August 6.

Shares of Sri Lotus Developers and Realty Ltd and M&B Engineering Ltd are expected to list with up to 25 per cent premium on the stock exchanges on August 6, following strong subscription demand in the primary market, analysts said.

Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi Shares and Stock Brokers, said Sri Lotus Developers is a Mumbai-based real estate company focused on ultra-luxury and luxury residential redevelopment projects in the city’s western suburbs.

Established in 2017, the company operates in the premium Mumbai Metropolitan Region (MMR) market. Promoter Anand Kamalnayan Pandit, who has over 24 years of experience, has developed 3.32 million sq. ft. under various entities.

"At the upper price band, the company is valued at a P/E of 30.6x on FY25 earnings, with EV/EBITDA of 24.5x and a post-issue market capitalisation of Rs 73,306 million. Investors may continue to hold the stock from a long-term perspective based on their risk appetite," Solanki said.

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Prashanth Tapse, Senior VP Research – Research Analyst at Mehta Equities Ltd, said that despite ongoing market volatility, Sri Lotus Developers saw robust subscription demand led by Qualified Institutional Buyers (QIBs), followed by retail and High Net-worth Individuals (HNIs).

"The strong response reflects investor confidence in the company’s focused strategy and positioning in Mumbai’s premium real estate market. Given the high subscription, we expect a listing gain of 20–25 percent, depending on market sentiment on listing day," Tapse added.

He advised allotted investors to hold the stock for the long term, while suggesting non-allotted investors to adopt a wait-and-watch approach for potential entry in case of a post-listing dip.

Sri Lotus Developers’ initial public offering (IPO), which had backing from Bollywood personalities and well-known investor Ashish Kacholia, was subscribed 69.14 times on the final day of bidding on Friday.

The Anand Kamalnayan Pandit-promoted company focuses on residential and commercial redevelopment projects in Mumbai’s ultra-luxury and luxury segments, especially in the western suburbs.

Meanwhile, the IPO of M&B Engineering Ltd received 36.2 times subscription on its closing day. M&B Engineering is a leading provider of pre-engineered buildings (PEB) and self-supported roofing systems in India, with an installed capacity of 103,800 MTPA for PEB and 18,00,000 square metres per annum for roofing.