The Initial Public Offering (IPO) of Sri Lotus Developers Limited continues to witness strong investor interest as it enters Day 2 of bidding. As of 12:30 PM, the public issue has been subscribed 6.48 times, signaling robust demand from both retail and institutional investors.
The IPO, which opened for subscription on July 30, 2025, will close on August 1, 2025. The issue size is a mix of fresh equity shares and an offer for sale, aggregating up to ₹50.08 crore. The price band for the issue has been set at ₹80–₹85 per equity share, with a lot size of 1,600 shares, making the minimum investment ₹136,000 for retail investors.
IPO Subscription Status – Day 2 (As of 12:30 PM)
| Investor Category | Subscription (x) |
|---|---|
| Retail Individual (RII) | 9.22x |
| Non-Institutional (NII) | 5.18x |
| Qualified Institutional Buyers (QIBs) | 1.89x |
| Total | 6.48x |
The Retail Investor category continues to lead the surge, with retail bids surpassing 9 times the reserved quota by mid-Day 2. Strong participation from HNIs and NBFCs also reflects growing interest in the mid-cap real estate segment.
About Sri Lotus Developers
Sri Lotus Developers is a Tamil Nadu-based real estate company focused on residential and commercial property development, primarily in Tier-2 cities. The firm has completed over 20 projects and has five ongoing developments, primarily in Coimbatore and Salem.
Key strengths include:
- Low debt-to-equity ratio
- Consistent profitability over the past 3 years
- Strategic land banks in high-growth regions
The proceeds from the fresh issue will be used to finance land acquisition, construction of upcoming projects, and debt repayment.
GMP (Grey Market Premium)
As per market sources, the Grey Market Premium (GMP) for Sri Lotus Developers IPO is hovering around ₹42–₹45 per share. This implies a listing gain expectation of nearly 50–53% over the upper price band of ₹85.
If the GMP sustains, the expected listing price could be around ₹127–₹130 per share.
IPO Review: Should You Subscribe?
Analysts have issued a mixed to positive view on the IPO:
🔍 Pros:
- Attractive valuation compared to listed peers like Sobha and Puravankara
- Consistent revenue and margin growth
- Strong order book and future-ready projects
⚠️ Risks:
- Regional concentration (mostly in Tamil Nadu)
- Volatility in real estate regulatory environment
- Highly competitive sector with thin margins
Brokerages like SBI Securities and Religare Broking have given a “Subscribe for Listing Gains” recommendation, citing strong retail interest, real estate revival post-pandemic, and a compelling GMP.
IPO Details at a Glance
| Feature | Details |
|---|---|
| IPO Opening Date | July 30, 2025 |
| IPO Closing Date | August 1, 2025 |
| Price Band | ₹80 – ₹85 per share |
| Lot Size | 1,600 shares |
| Issue Size | ₹50.08 crore |
| Market Lot Value | ₹1.36 lakh |
| Listing Date (Tentative) | August 7, 2025 |
| Exchanges | NSE SME |
What to Expect Ahead
With just one day left for subscription, the Sri Lotus Developers IPO is poised to see even higher bids, especially from institutional investors. The high GMP is an encouraging sign for short-term investors targeting listing gains. However, long-term investors are advised to review the company’s fundamentals, scalability, and project execution track record.
Keep watching this space for Day 3 live subscription updates, post-issue allotment status, and listing predictions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before investing.
