Business Profile :
The company operates in the real estate industry developing residential and commercial premises in Mumbai and Maharashtra where the company strategically operates. Company projects are mainly divided into three categories company works, greenfield projects which are constructed on undeveloped land, secondly redevelopment projects which are developed by reconstruction agreements with housing societies and joint development projects where the company enters into a development agreement with the holder of land. The company mainly focuses on ultra-luxury and luxury residential properties by constructing ₹ 3-7cr for the luxury segment and above ₹ 7cr for the ultra-luxury segment.
Sri lotus developers and realty limited IPO Objective :
As per the draft red hearing prospects, the IPO issue consists only of fresh issue.
- Sri lotus developers and realty limited ipo offer only has fresh issue of Rs. 7920.0 million. As per DRHP document, the company aims to utilize IPO proceedings towards investment in subsidiary for their ongoing projects which is ₹ 550 crores and remaining capital utilize for general corporate purpose requirement.
IPO Details of sri lotus developers and realty limited:
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹1 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₹ 7,920.00 million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₹ 7,920.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Issue Price & Size:
The issue price of sri lotus developers and realty limited hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue of Rs. 792 crores.
Launch Date:
The IPO opening date of SRI LOTUS DEVELOPERS AND REALTY LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements:
| S.no. | Particulars | Sept 30 , 2024 | Mar 31 , 2024 | Mar 31 , 2023 | Mar 31 , 2022 |
| INCOME | |||||
| I. | Revenue from operations | 2,434.25 | 4.615.75 | 1,668.71 | 1,025.78 |
| II. | Other income | 41.22 | 46.13 | 30.75 | 6.04 |
| III. | Total income | 2,475.47 | 4,661.88 | 1,699.46 | 1,031.82 |
| IV. | EXPENSES | ||||
| Cost of construction and development | 1,264.63 | 3.188.79 | 1,310.29 | 1.690.49 | |
| Changes in inventories | ( 247.39 ) | ( 367.69 ) | ( 33.55 ) | ( 955.68 ) | |
| Employee benefits expenses | 45.73 | 7.21 | 10.00 | 9.26 | |
| Finance costs | 0.32 | 1.57 | 6.40 | 1.36 | |
| Depreciation and amortisation expenses | 7.39 | 12.21 | 9.07 | 3.77 | |
| Other expenses | 187.78 | 408.64 | 190.41 | 70.13 | |
| Total tax expenses | 1,258.46 | 3.050.73 | 1,470.62 | 819.33 | |
| V. | Profit /(loss) before share of profit of associates and income tax (III-IV) | 1,217.01 | 1,611.15 | 228.84 | 212.49 |
| VI. | Total tax expenses | 310.71 | 419.71 | 57.92 | 45.41 |
| VIII. | Profit/ ( loss ) for the period / year from continuing operations ( V - VI + VII ) | 906.30 | 1.191.44 | 168.03 | 167.73 |
| S. No |
Particulars | Six months ended September 30 , 2024 |
FY ended Mar 31 , 2024 |
FY ended Mar 31 , 2023 |
FY ended Mar 31 , 2022 |
| 1 . | Revenue from operations ( * million ) |
2,434.25 | 4,615.75 | 1,668.71 | 1,025.78 |
| 2 . | Growth in Revenue from Operations ( % ) |
NA | 176.61 % | 62.68 % | NA |
| 3 . | EBITDA million ) | 1,183.50 | 1,585.45 | 208.41 | 168.97 |
| 4 . | EBITDA Margin ( % ) | 48.62 % | 34.35 % | 12.49 % | 16.47 % |
| 5 . | EBIT ( million ) | 1,176.11 | 1,573.24 | 199.34 | 165.20 |
| 6 . | EBIT Margin ( % ) | 48.32 % | 34.08 % | 11.95 % | 16.10 % |
| 7 . | Profit before Tax ( * million ) | 1,217.01 | 1,617.80 | 223.69 | 169.87 |
| 88 8. | Profit After Tax ( * million ) | 906.30 | 1,198.09 | 162.88 | 125.11 |
| 9. | Profit After Tax Margin ( % ) | 37.23 % | 25.96 % | 9.76 % | 12.20 % |
| 10. | Net Worth ( million ) | 3,982.98 | 1,695.57 | 483.63 | 316.85 |
| 11. | RoE ( % ) | 22.71 % | 70.68 % | 34.41 % | 40.77 % |
| 12. | ROCE ( % ) | 13.65 % | 26.28 % | 5.29 % | 4.50 % |
| 13 . | Debt to Equity Ratio | 1.16 | 2.51 | 6.90 | 10.73 |
| 14. | Sales Value ( In terms of value ) ( million ) |
2,123.59 | 3,469.66 | 1,987.78 | 1,694.82 |
| 15. | Sales Unit ( In terms of units booked by customers ) |
32 | 67 | 39 | 39 |
| 16 . | Sales ( in terms of area booked by customers ) ( in million square feet ) |
0.04 | 0.09 | 0.07 | 0.05 |
| 17. | Completed Developable Area ( in million square feet ) |
0.12 | 0.56 | - | - |
Promoters & Shareholding:
As of date, there are three promoters of the company.
The promoter along with promoter group in aggregate collectively holds 91.78% of the paid-up share capital of company.
| Name of the Shareholder |
Equity Shares of FV * 1 each | share capital ( % ) |
| Promoters | ||
| Anand Kamalnayan Pandit |
351,999,980 | 80.75 |
| Roopa Anand Pandit | 10,020 | Negligible |
| Ashka Anand Pandit | 10,000 | Negligible |
| Total ( A ) | 352,020,000 | 80.76 |
| Promoter Group | ||
| Rudratej Anand Pandit | 10,000 | Negligible |
| Aishwarya Anand Pandit | 10,000 | Negligible |
| Ashka Pandit Family Trust |
16,006,000 | 3.67 |
| Aishwarya Pandit Family Trust |
16,006,000 | 3.67 |
| Rudratej Pandit Family Trust |
16,006,000 | 3.67 |
| RPAP Family Trust | 6,000 | Negligible |
| Dimple Dalia | 6,600 | Negligible |
| Total ( B ) | 48,050,600 | 11.02 |
| Total ( A + B ) | 400,070,600 | 91.78 |
Should You Subscribe to SRI LOTUS DEVELOPERS AND REALTY LIMITED IPO or Not:
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths:
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Strong position in the luxury and ultra-luxury segment :
Most of the company's completed projects and ongoing projects come under the luxury and ultra-luxury segment. The company's majority of projects are in Mumbai and Maharashtra and the western suburbs region where the company has the advantage of no new threat of competitors because of regulatory barriers in this area which is the posh of Mumbai.
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Strong brand recognition in the market:
The company has a strong brand position and goodwill in the market because of better consumer satisfaction at a large scale in a luxury segment which also helps encourage stakeholders and investors to engage in partnership with the company. The presence of the company in the western Mumbai area suburbs which is a posh area and the advantage of making projects of luxury and ultra-luxury flats generate good cash flow for the company.
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Assets light model for project development:
The company acquires land for redevelopment projects through an assets light model in which the company works with the land owner in a joint agreement which helps the company to reduce the acquisition cost for acquiring land for projects. In this agreement, the company makes an agreement with the owner to get permission for project development and share some part of the profit with the owner. This company saves time by getting permission from government authorities.
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On-time project completion :
The company only starts its projects when it gets the necessary approval from regulatory authorities and the company's in-house resource management. The company works with professional architecture, sales & marketing teams along with promoter experience to help in achieving on-time project work.
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Company expansion in markets:
The company expanding its micro market in south-central and eastern areas of Maharashtra which is the posh area and the price of properties has increased 6% YoY basis. The strong brand recognition of the company in this area gives the company an edge to acquire more market from its competitors.
Risk Factors :
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Price sensitivity:
The company business mainly depends on a micro factor that affects the real estate market in the western suburbs of Mumbai which is the posh area. This company is exposed with risk of economic, regulatory and other challenges such as natural disaster risks in the western suburb area of Mumbai because the majority and luxury projects are in this area.
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Unsold properties:
As of the year 2024 company has 35 units unsold out of which is completed and 248 units unsold in outgoing projects. This creates a problem in the cash flow of the company which is required for operation activity and company is not able to sell these unsold units it will adversely affect company profits.
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Dependency risk :
The company entirely depends on third parties for the development and making of projects which raises the risk if the contractor fails to complete the project on time it will affect the future operations and profits of the company adversely. The company clearly mentions that if the contractor does not complete the project on time it will incur loss and penalty from regulators.
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Main focus on redevelopment projects:
The company mainly operates in redevelopment projects in real estate and the company said that they are unable to get a bid for redevelopment projects and the company is not always accepted by society. This company said that they are unable to match the criteria and qualifications required for redevelopment projects by housing societies.
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Regulatory approval:
The company requires statuary and regulatory approval licenses for their ongoing and upcoming project at various stages. The licensing approval is mainly related to environmental issues, The Company is clear that if they fail to obtain the licenses for projects it will negatively affect badly company's working and profits.
Grey Market premium:
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Sri lotus developers and realty limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
