Sri Lotus Developers shares list with 19% premium over IPO price

Shares of Sri Lotus Developers made a strong stock market debut on both BSE and NSE, listing at a healthy premium to their IPO price of Rs 150.

On the BSE, the stock opened at Rs 179.10, marking a 19.4% premium, while on the NSE, it debuted at Rs 178, up 18.7% from the issue price.

The listing performance was largely in line with grey market expectations, where the stock was quoting a premium of around 18% ahead of its debut.

The Rs 792 crore IPO, entirely a fresh issue of 5.28 crore shares, was open for bidding from July 30 to August 1. The issue drew overwhelming interest from all categories of investors, closing with an overall subscription of 74.10 times.

The Qualified Institutional Buyers (QIB) segment led the charge with a subscription of 175.61 times, followed by Non-Institutional Investors (61.82 times) and retail investors (21.77 times).

Sri Lotus Developers, a Mumbai-based real estate company focused on ultra-luxury and luxury residential and commercial redevelopment projects in the city’s affluent western suburbs, has positioned itself as a niche player in a competitive landscape.As of June 2025, it holds a developable area of 0.93 million square feet and boasts a project pipeline that includes four completed projects, five ongoing, and eleven upcoming developments.The IPO proceeds are earmarked primarily for investments in its subsidiaries to fund three ongoing marquee projects — Amalfi, The Arcadian, and Varun — with Rs 550 crore allocated towards development costs. The remaining funds will be used for general corporate purposes. The company follows an asset-light model, partnering with landowners through development agreements, allowing it to maintain healthy cash flows.

In terms of financial performance, the company has shown healthy growth. Revenue for FY25 stood at Rs 569.28 crore, up 22% from the previous year, while profit after tax more than doubled to Rs 227.89 crore.

With the IPO oversubscription and strong grey market signals, all eyes are now on the stock’s performance on August 6. While the premium suggests listing gains, long-term investors will be watching how the company delivers on its pipeline and manages execution in Mumbai’s competitive luxury housing market.

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