Sri Lotus Developers IPO Oversubscribed

New Delhi, Jul 31 (PTI) The initial share sale of Sri Lotus Developers and Realty Ltd, a real estate company backed by Bollywood stars and renowned investor Ashish Kacholia, got subscribed 10.34 times on Thursday, the second day of bidding.

The initial public offer (IPO) received bids for 40,99,20,100 shares against 3,96,58,730 shares on offer, according to data available with the NSE.

The category for non-institutional investors got subscribed 15.95 times while the portion for Retail Individual Investors (RIIs) garnered 8.89 times subscription. The quota for Qualified Institutional Buyers (QIBs) got subscribed 8.69 times.

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

The initial public offering (IPO) will conclude on Friday. 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.