Sri Lotus Developers IPO Over-Subscribed

New Delhi, Jul 30 (PTI) Sri Lotus Developers and Realty Ltd, a real estate company backed by Bollywood stars and renowned investor Ashish Kacholia, saw its initial public offer getting subscribed 3.59 times on the first day of bidding on Wednesday.

The IPO received bids for 14.23 crore (14,23,86,800) equity shares against 3.96 crore (3,96,58,730) equity shares on offer, according to data available with the NSE.

Qualified Institutional Buyers' (QIBs) category attracted 5.31 times subscription while the quota for non institutional investors got subscribed 3.10 times. Retail Individual Investors (RIIs) part fetched 2.82 times subscription.

Sri Lotus Developers on Tuesday raised Rs 237 crore from institutional investors.

The initial public offering (IPO) will conclude on August 1. The company has fixed a price band of Rs 140-150 per share for the IPO.

The IPO is entirely a fresh issue of shares worth Rs 792 crore with no Offer For Sale (OFS) component.

Proceeds from the fresh issue will be used for investment in its subsidiaries, Richfeel Real Estate Pvt Ltd, Dhyan Projects Pvt Ltd and Tryksha Real Estate Pvt Ltd for part-funding the development and construction cost of its ongoing projects, Amalfi, The Arcadian and Varun, respectively; besides, a portion will be used for general corporate purposes.

The Anand Kamalnayan Pandit-promoted company is a real estate developer engaged in the construction of residential and commercial premises in Mumbai, Maharashtra, with a focus on redevelopment projects in the ultra luxury and luxury segments in the western suburbs.

Monarch Networth Capital and Motilal Oswal Investment Advisors are the book running lead managers of the public issue.