IPO closes on 1 Aug'25
Sri Lotus Developers & Realty Ltd
Minimum Investment
₹ 15,000 / 100 shares
Grey market premium
₹ 44 (29% premium)
Our Verdict:
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- Sri Lotus Developers & Realty Ltd (SLDRL) holds a strong position in the ultra-luxury and luxury residential market of Mumbai’s Western Suburbs, backed by robust growth in revenue and earnings over the past three years.
- SLDRL boasts industry-leading profit margins and healthy return ratios, highlighting strong operational efficiency and financial discipline. The company operates a capital-efficient model, with over 90% of upcoming projects in the redevelopment space—minimizing upfront capital requirements and enabling faster execution with higher IRRs (Internal Rate of Return) and strong cash flows.
- On the valuation front, the IPO appears reasonably priced with a P/E multiple of 27x considering the company's fundamentals and outlook. Moreover, the grey market premium (GMP) signals a potentially positive listing, reflecting strong investor sentiment.
- The broader market environment is also favourable. Demand for high-end housing has surged in recent years. Notably, the share of luxury homes priced above Rs 2.5 crore has risen sharply—from 3% in 2021 to 22% in Q1 2025. Similarly, homes in the Rs 1.5 crore to Rs 2.5 crore range have grown from 8% to 21%, indicating a clear uptick in interest for premium properties.
- SLDRL’s solid financials, established brand presence in key micro-markets and a strong pipeline of projects position it well to benefit from the ongoing premium housing upcycle. Given these factors, investors may consider subscribing to the IPO from a medium-to-long term perspective.
About the company
Founded in
17 Feb'15
Managing director
Anand Pandit
- SLDRL is a leading real estate developer based in Mumbai, one of India’s biggest real estate markets. The company focuses on Ultra-Luxury and Luxury redevelopment projects across the city’s western suburbs and operates under the “Lotus Developers” brand, known for delivering premium residential and commercial spaces.
- SLDRL undertakes projects through three key development models: redevelopment, joint development and greenfield projects. In FY25, these models contributed 33%, 5%, and 62% to the company’s total revenue, respectively.
STRENGTHS
- Robust Financial Growth: SLDRL has delivered exceptional performance from FY23 to FY25, recording a strong CAGR of 81% in operating revenue, 272% in EBITDA and 274% in net profit.
- Strong Return Ratios: SLDRL exhibits high operational efficiency with healthy return metrics, including a Return on Equity (RoE) of 24% and Return on Capital Employed (RoCE) of 27% in FY25—outperforming listed peers.
- Expanding Margins: SLDRL’s profitability has steadily improved, with EBITDA margin reaching 52.57% and net profit margin at 41.46% in FY25, positioning it ahead of its peers.
- Solid Project Pipeline: As of June 30, 2025, SLDRL has 5 ongoing projects with a total estimated developable area of 0.80 million sq. ft. and an estimated RERA saleable carpet area of 0.30 million sq. ft., offering strong visibility on near-term cash flows through ongoing sales. Additionally, the company has 11 upcoming projects with an aggregate developable area of 4.98 million sq. ft.
RISK FACTORS
- Geographic Concentration: As of June 30, 2025, all of SLDRL’s ongoing projects and a majority of its upcoming developments are located in the Western Suburbs of Mumbai. This heavy regional concentration exposes the company to localized risks such as economic slowdowns, regulatory changes and natural disasters, which could impact sales, pricing and overall business performance.
- Cash Flow Pressure: SLDRL reported negative cash flow from operations in FY25. Persistent negative cash flows may undermine the company’s financial stability and raise concerns about business continuity.
- Contingent Liabilities: As of March 31, 2025, SLDRL reported contingent liabilities totalling Rs 50 crore. If these liabilities materialize, they could have an adverse impact on the company’s financial position.
- Subsidiary Performance: Some of SLDRL’s subsidiaries have incurred losses over the past three years. Since the company executes most of its projects through these subsidiaries, continued underperformance may strain overall business performance.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 792 crore
Fresh Issue
₹ 792 crore
OFS
₹ -
Price range
₹ 140 - 150
Lot size
100 shares
Issue Objective
The net proceeds from the fresh issue will be utilized to:
- Partially fund the development and construction costs of ongoing real estate projects undertaken through the company’s subsidiaries; and
- To meet general corporate purposes.
Dates
Bidding open
30 Jul'25
Bidding close
1 Aug'25
Allotment date
4 Aug'25
Refund date
5 Aug'25
Listing
6 Aug'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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