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With top Bollywood investors and big profits, Sri Lotus Developers is all set for a Rs 792 cr IPO. Here’s why SRK and Big B trusted this realty firm early on.
Sri Lotus Developers has filed a draft red herring prospectus with Sebi to raise Rs 792 crore through a fresh issue of shares.
Even before its IPO ambitions took shape, Mumbai-based Sri Lotus Developers and Realty had already caught the eye of some of Bollywood’s biggest names. From Shah Rukh Khan and Amitabh Bachchan to Hrithik Roshan, Ektaa Kapoor, Tiger Shroff, and others, a host of A-listers have invested crores into this luxury-focused real estate firm through pre-IPO placements.
As the company prepares to launch its Rs 792-crore initial public offering (IPO), these high-profile backers have drawn attention to the firm’s strong track record, growth potential, and leadership under real estate and film industry veteran Anand Pandit.
About Sri Lotus Developers
Sri Lotus Developers is a Mumbai-based real estate firm that focuses on premium and ultra-luxury residential and commercial projects, primarily in the city’s high-demand western suburbs. With a portfolio spanning landmark redevelopment projects and high-rise luxury towers, the company has become a significant player in the upscale Mumbai market.
Founded by Anand Pandit, who also has a strong presence in Bollywood as a film producer, the company leverages his dual industry connections to blend business acumen with brand visibility. As of FY24, Sri Lotus Developers reported a net profit of Rs 119.9 crore on revenues of Rs 461.6 crore.
Its residential projects include completed one Ananya at Juhu and other underconstruction projects The Arcadia at Juhu and sea-facing tower Amalfi at Versova in Mumbai.
The company’s commercial projects are Lotus Signature (Andheri West-completed), Arc One (Andheri West-ongoing), and Lotus Trident (Andheri-upcoming), according to its website.
Why Did Shah Rukh Khan, Amitabh Bachchan and Other Celebrities Invest?
According to real estate experts, Bollywood celebrities have invested in the company mainly due to:
1. Long-Term Vision and Trust in the Promoter
Both actors have had professional associations with Anand Pandit in the past through the film industry. Pandit’s reputation and proven track record in real estate likely played a key role in inspiring their confidence. This isn’t just a one-off transaction; it reflects a long-term vision backed by personal rapport.
2. Pre-IPO Advantage
SRK’s family trust reportedly purchased around 6.75 lakh shares worth Rs 10.1 crore, while Amitabh Bachchan picked up nearly 6.7 lakh shares for Rs 10 crore. These investments were made well before the company filed its draft red herring prospectus with SEBI, positioning them for potential upside post-listing.
3. Mumbai Real Estate as a Prime Asset
With the resurgence of luxury real estate post-COVID and ever-growing demand in Mumbai, especially in redevelopment hubs, investing in a niche player like Sri Lotus Developers offers an attractive risk-reward ratio. It’s not just about financial diversification—it’s about betting on Mumbai’s real estate boom.
4. Brand Equity and Influence
Having superstar investors lends significant brand value to the company. Their involvement enhances the firm’s public perception and could be instrumental in drawing more retail and institutional investors to the IPO.
The Sri Lotus Developers IPO Plan and Utilisation of Funds
Sri Lotus Developers has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 792 crore through a fresh issue of shares.
Bollywood stars and renowned investor Ashish Kacholia-backed Sri Lotus Developers is looking to mop up Rs 792 crore through IPO. The issue is completely a fresh issue of shares with no offer for sale (OFS) component, according to the draft papers.
The proceeds from the fresh issue will be used for investment in its subsidiaries Richfeel Real Estate, Dhyan Projects, and Tryksha Real Estate Pvt Ltd, for part-funding the development and construction cost of its ongoing projects, Amalfi, The Arcadian and Varun. Besides, a portion will be used for general corporate purposes.
The investments by Shah Rukh Khan, Amitabh Bachchan, and other Bollywood celebrities in Sri Lotus Developers underscore a growing trend of entertainment industry figures venturing into real estate investments. Their involvement not only brings financial backing but also enhances the company’s brand value, potentially attracting more investors during the IPO. As Sri Lotus Developers prepares to go public, the fusion of Bollywood star power and real estate development presents a compelling narrative in India’s investment landscape.
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