Sri Lotus Developers' IPO Soars High on Day One

Sri Lotus Developers and Realty Ltd, supported by Bollywood stars and investor Ashish Kacholia, had its IPO oversubscribed by 3.59 times on the first day. The funds raised will support various real estate projects in Mumbai. The issue aims to gather Rs 792 crore without any Offer For Sale.

Sri Lotus Developers and Realty Ltd, a company with backing from Bollywood icons and notable investor Ashish Kacholia, saw a remarkable demand on the opening day of its IPO, achieving a subscription rate of 3.59 times. Investors placed bids for 14.23 crore equity shares compared to the 3.96 crore shares available in the offer, according to data from the National Stock Exchange.

The IPO, which concludes on August 1, targets raising Rs 792 crore through a fresh issue of shares, with no Offer For Sale component. Qualified Institutional Buyers showed significant interest, subscribing 5.31 times over their designated quota, while non-institutional investors and retail individual investors subscribed 3.10 times and 2.82 times, respectively.

The funds from the offering will primarily be directed towards development costs for ongoing real estate projects under its subsidiaries, including Amalfi, The Arcadian, and Varun. Additionally, the proceeds will support the company's general corporate expenses. Sri Lotus is spearheaded by Anand Kamalnayan Pandit and specializes in luxury redevelopment projects in Mumbai's western suburbs. Monarch Networth Capital and Motilal Oswal Investment Advisors are managing the issue.

(With inputs from agencies.)