Sri Lotus Developers & Realty IPO opens today: Should you subscribe to it?

The initial public offering (IPO) of Sri Lotus Developers & Realty kicks-off for bidding on Wednesday, July 30. The realty company is offering its shares in the range of Rs 140-150 apiece. Investors can apply for a minimum of 100 equity shares and its multiples thereafter. The IPO closes for bidding on Friday, August 01.

Sri Lotus Developers is looking to raise a total of Rs 792 crore via its IPO, which is entirely a fresh share sale of up to 5,28,00,000 equity shares. The net proceeds from the issue shall be utilized towards investment in the Subsidiaries, for part-funding development and construction cost of their ongoing projects and general corporate purposes.

Incorporated in February 2015, Mumbai-Sri Lotus Developers and Realty is a developer of residential and commercial properties located in Mumbai, Maharashtra, specializing in redevelopment projects within the ultra-luxury and luxury segments of the western suburbs. It possesses a developable area of 0.93 million square feet.

Sri Lotus Developers raised Rs 237 crore from anchor investors as it finalised allocation of 1.58 crore shares to at Rs 150 apiece. Institutional investors like Societe Generale, Samsung India, LC Pharos Multi Strategy Fund, Citigroup Global, Nomura Singapore, Eminence Global Fund, and Viridian Asia Opportunities Master Fund participated in the anchor book.

For the year ended on March 31, 2025, Sri Lotus Developers reported a net profit of Rs 227.89 crore with a revenue of Rs 569.29 crore. The company clocked a net profit of Rs 119.14 crore with a revenue of Rs 466.19 crore for the financial year ended on March 31, 2025. The company shall command a market capitalization close to Rs 7,330.65 crore.

The company has reserved 50 per cent of the net offer for the qualified institutional bidders, while non-institutional investors will have 15 per cent of the offer allocated for them. Retail investors will have 35 per cent of the reservation in the IPO. Eligible employees of the company, who have a reservation, will get a discount of Rs 14 per share.

Motilal Oswal Investment Advisors and Monarch Networth Capital are the book-running lead managers of the Sri Lotus Developers IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, August 6. Here's what a host of brokerage firms said about the IPO of Sri Lotus Developers & Realty:  

Reliance Securities Rating: Subscribe Sri Lotus Developers has demonstrated exceptional financial scaling, with revenue growing 3.4 times and PAT expanding nearly 7.5times over FY23–FY25. EPS surged Rs 4.66, while fixed asset turnover improved sharply, highlighting efficient capital deployment. Its asset-light, redevelopment-driven model has delivered industry-leading margins and return ratios, said Reliance Securities.

"Strong pricing power, a premium brand image, and robust project visibility position it well for sustained growth. Overall, Lotus presents a high-margin, capital-efficient play on Mumbai’s luxury housing boom. Owing to such developments, we recommend to subscribe," it added.  

SBI Securities Rating: Subscribe Sri Lotus Developers follows an asset-light model,resulting in a strong balance sheet and net debt-free status. Among its peers, the company boasts the highest Ebitda and PAT margin for FY25, said SBI Securities. "We recommend investors to 'subscribe' to the IPO at the cut-off price," it added.  

Angel One Rating: Subscribe At a post-issue P/E of approximately 32.2 times, the valuation of Sri Lotus Developers appears reasonable considering its strategic focus on Mumbai’s high-entry-barrier luxury redevelopment segment, said Angel One. "We recommend a 'subscribe' rating for long-term investors," it said.

Angel cited its high geographic concentration in Mumbai’s western suburbs, reliance on timely regulatory approvals for redevelopment projects, significant dependence on commercial revenue, relatively limited brand visibility compared to larger peers, and execution challenges across multiple ongoing and upcoming developments as key risks.  

Anand Rathi Shares & Stock Brokers Rating: Subscribe for long-term Sri Lotus Developers holds a strong strategic position in the Ultra Luxury and Luxury residential real estate market of Mumbai’s Western Suburbs, one of the city's most premium micro-markets. The company prioritizes customer centricity, consistently delivering quality, value, and satisfaction across its expanding portfolio of residential and commercial projects, said Anand Rathi.

"Their asset-light model executed through development agreements with landowners and housing societies—minimizes capital outlay, supports financial flexibility, and ensures robust operating cash flows. With integrated, end-to-end execution capabilities covering design, approvals, construction, and handover, the company is known for timely project completion," it said with a 'subscribe for long-term' tag.  

Canara Bank Securities Rating: Subscribe Sri Lotus Developers operates in premium micro-markets like Juhu and Bandra using a unique 'Blue & Green' strategy that blends prime city locations with serene surroundings. All operations, including execution, branding, and sales, are handled in-house, with 100% organic sales driven by referrals and a strong reputation—eliminating the need for advertising, said Canara Bank Securities.

"The brand commands a 20–22 per cent pricing premium, backed by high customer satisfaction and a celebrity client base. The valuation appears justified given its superior RoE of 24.4 per cent, industry-leading Ebitda margins of over 50 times, and a clean balance sheet. Considering its robust financials, differentiated model, and strong brand, we recommend subscribing to the issue for long-term," it said.  

Arihant Capital Markets Rating: Subscribe Sri Lotus Developers has established a presence across the real estate industry with a growing portfolio. The company’s asset-light model, brand-driven premium pricing, and history of ahead-of-schedule project delivery are key strengths, said Arihant Capital. "It has a consistent increase in the PAT over the 2 years. The issue is valued at a P/E ratio of 32.17 times. We are recommending a 'subscribe for listing gain' rating."  

KR Choksey Finserv Rating: Subscribe "Lotus Developers initial issue is priced at 24.5 times FY25 Ebitda, higher than its peer average of 20.7 times FY25 Ebitda. Given its strong growth, asset-light business model, and superior return profile, we believe it demands premium over its peers and believe value  in its initial offering. We assign a 'subscribe' rating to its initial issue," said KR Choksey Finserv.  

Marwadi Financial Services Rating: Subscribe "We assign 'subscribe' rating to this IPO as the company has strategic position in the ultra luxury segment and luxury segment of the residential real estate market of the Western Suburbs of Mumbai with a customer centric focus and strong pipeline of projects," said Marwadi Financial Services. "It is available at a reasonable valuation as compared to its peers."  

Mehta Equities Rating: Subscribe With 5 ongoing and 11 upcoming projects across key micro-markets in Mumbai—alongside strategic expansion into high-value localities such as Prabhadevi, Nepean Sea Road, and Bandra—Company is well-positioned to capitalize on sustained urban housing demand and rising premium real estate prices, said Mehta Equities.

Operating in a highly competitive and fragmented market, the company stands out as a niche ultra-luxury developer with high margins, though it comes to market at a premium valuation. The presence of notable investors and Bollywood personalities in the pre-IPO placement adds visibility but also elevates expectations. We recommend subscribe' to the issue for long-term," it added.