SRK, Bachchan-Backed Sri Lotus Developers Raises Rs 237 Crore From Anchor Investors Ahead Of IPO

Sri Lotus Developers and Realty Ltd., backed by Bollywood stars like Amitabh Bachchan, Shah Rukh Khan and Hrithik Roshan, raised Rs 237 crore from anchor investors on Tuesday ahead of its initial public offering.

The real estate developer allotted 1.58 crore shares at Rs 150 apiece to 16 anchor investors.

Societe Generale-ODI got the highest allocation of 18.99%. Tata Mutual Fund- Tata Small Cap Fund got the second-highest allotment of 14.77% and Mahindra Manulife Multi Cap Fund got 8.74% stake in the company.

Three domestic mutual funds have applied through four schemes. They have collectively netted 33.76% of the anchor portion. Tata Mutual Fund, Mahindra Manulife and HSBC were the fund houses in this category, it said in an exchange filing.

Monarch Networth Capital Ltd. and Motilal Oswal Investment Advisors Ltd. are the book-running lead managers to the issue.

The company will launch its initial public offering on Wednesday to raise up to Rs 792 crore. It has set a price band of Rs 140-150 per share for its three-day IPO, which only comprises fresh issue with no offer for sale. The minimum application lot size is 100 shares.

The offer, which concludes on Friday, is set to list on the BSE and the National Stock Exchange.

The proceeds will be used for investment in subsidiaries Richfeel Real Estate Pvt., Dhyan Projects Pvt. and Tryksha Real Estate Pvt. for part-funding development and construction cost of ongoing projects and general corporate purposes, as per the draft red herring prospectus.

Megastar Amitabh Bachchan purchased around 6.7 lakh shares for Rs 10 crore, while the Shah Rukh Khan Family Trust acquired about 6.75 lakh shares for Rs 10.1 crore. Other notable investors include Hrithik Roshan, who bought 70,000 shares for slightly over Rs 1 crore.