Sri Lotus IPO: Sri Lotus Developers plans to raise Rs 792 crore through IPO to fund projects – News Air Insight

ET Intelligence Group: Sri Lotus Developers and Realty, a Mumbai-based residential and commercial properties developer, plans to raise ₹792 crore through fresh issue to fund ongoing projects and general corporate purposes. The promoter stake will fall to 81.9% after the IPO from 91.8%. The company operates at a higher operating margin before depreciation and amortisation (Ebitda margin) of 53% compared with 11-37% for peers.

Its cash balance on books is higher than net debt. But being present in just one market, it exhibits geographic concentration. Given these factors, investors with high-risk appetite may consider the IPO.

Incorporated in 2015, Sri Lotus focuses on redevelopment projects in the ultra-luxury segment (3BHK, 4 BHK & over 4 BHK flats and penthouses with a price of over ₹7 crore) and luxury segment (2BHK and 3 BHK flats ranging between ₹3-₹7 crore) in the western suburbs.

As of June 30, 2025, the company has four completed projects, five ongoing projects and eleven upcoming projects. It has developed 0.93 million square feet of area consisting of both residential and commercial properties. Of this, 54% belongs to redevelopment projects and the rest is from greenfield projects.

Revenue from operations, Ebitda and net profit grew 81.5%, 272.4% and 268.3% annually to ₹549.7 crore, ₹289 crore and ₹227.9 crore, respectively between FY23 and FY25. Ebitda margin expanded to 52.6% in FY25 from 12.5% in FY23.

Average price per square feet for Lotus Group is ₹68,000 vs ₹55,694 in the Juhu micro-market. Debt-equity ratio is 0.13 compared with 0.12-0.16 for peers. Considering the post-IPO equity and net profit for FY25, the company demands a P/E multiple of up to 32 compared with P/Es between 14 and 127 for peers including Suraj Estate Developers, Arkade Developers, Sunteck Realty, Hubtown and Mahindra Lifespaces.