Sri Lotus Developers IPO: Amitabh Bachchan, SRK-Backed Issue Subscribed 345% On Day One So Far — Check GMP

Sri Lotus Developers IPO: The Sri Lotus Developers and Realty Ltd. has launched its initial public offering today to raise up to Rs 792 crore. The price band is set at Rs 140-150 per share for the three-day IPO, which only comprises fresh issue with no offer for sale.

The minimum application lot size is 100 shares. The offer concludes on Friday, the company is set to list on the BSE and the National Stock Exchange. The real estate developer allotted 1.58 crore shares at Rs 150 apiece to 16 anchor investors.

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.

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.

Tata Mutual Fund, Mahindra Manulife and HSBC have netted over 30%. Monarch Networth Capital Ltd. and Motilal Oswal Investment Advisors Ltd. are the book-running lead managers to the issue. The IPO 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 (IPO).

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.

• Issue opens: July 30.

• Issue closes: Aug 1.

• Issue price: Rs 140-150.

• Total offer size: Rs 792 crore.

• Fresh issue: 5.28 crore shares aggregating to Rs 792 crore.

• Lot size: Minimum 100 shares.

The Sri Lotus IPO has been subscribed 3.45 times as of 1:18 p.m. on Wednesday.

• Qualified Institutions: 3.45 times

• Non-Institutional Buyers: 1.36 times.

• Retail Investors: 1.46 times

• Portion reserved for employees: 1.74 times.

The grey market premium for Sri Lotus Developers IPO was Rs 44, as of 11:57 a.m. on July 30, according to InvestorGain. That implies a potential listing at around Rs 194 per share, marking a premium of 29.33%.

GMP or grey market price is not an official indicator and is based on market speculation.