Sri Lotus Developers & Realty, promoted by Anand Kamalnayan Pandit, is a developer of residential and commercial premises in Mumbai, Maharashtra with focus primarily on development of ultra-luxury and luxury residential properties and commercial properties in the western suburbs of Mumbai Metropolitan Region (MMR). The company executes and markets realty projects under the “Lotus Developers” brand.

The company have completed four projects with an aggregate Developable Area of 0.93 million square feet as of Jun 30, 2025. However Anand Kamalnayan Pandit, the promoter of the company has more than 24 years of experience in MMR realty market having executed twelve (12) projects in the western suburbs of Mumbai, out of which eight (8) projects are in the residential segment and four (4) projects were in the commercial segment, and developed over 3.32 million square feet, under entities separate from the companies.

The company as end of Jun 30, 2025, have 5 ongoing projects with an aggregate estimated developable area of 0.80 million square feet and estimated saleable RERA carpet area of - 0.30 million square feet. In addition, it have 11 Upcoming Projects with an aggregate estimated developable area of 4.98 million square feet. Moreover 2 of its 4 Completed Projects and 3 of its 11 Upcoming Projects are in the commercial realty segment as of June 30, 2025.

The company typically develop its projects through three main development models including (i) Redevelopment Projects; (ii) Joint Development Projects and (iii) Greenfield Projects. Of the ongoing projects about 78.64% is redevelopment projects, 21.36% is joint development projects. Similarly of the upcoming projects about 90.03% is redevelopment projects, 2.32% is JD projects and 7.65% is greenfield projects.

In FY25, the luxury (>3 crore but <7 crore price range), ultra luxury (>Rs 7 crore price range) and commercial projects accounted for 6.38%, 7.25% and 80.73% of revenue and in FY24 it was 25.03%, 6.38% and 68.59% respectively.

The company entirely dependent on third party contractors for the construction and development of its projects. Its largest contractor (i.e. Shree Gajanand Associates) and top 10 contractors account for 21.71% 53.74% of the total expenses respectively in FY25.

The Issue, Objects of the Issue

The Offer comprises entirely of fresh issue of equity shares aggregating upto Rs 792 crore.

Of the net proceeds from fresh issue the company propose to invest Rs 550 crore in its Subsidiaries, Richfeel Real Estate Private Limited, Dhyan Projects Private Limited and Tryksha Real Estate Private Limited for part-funding development and construction cost of Ongoing Projects, Amalfi, The Arcadian and Varun, respectively. Balance amount will be used for general corporate purposes.

Strength

Strong brand recognition in MMR realty market with ability to sell at a premium pricing. This allows the company to sell throughout the construction phase.

Strategic position in the Ultra Luxury Segment and Luxury Segment of the residential real estate market of the Western Suburbs of Mumbai with a customer centric focus

Strong pipeline of projects (with a developable area of 0.80 msft of ongoing projects and 4.98 msft of upcoming projects in MMR realty market) with visibility towards near term cash flows.

Proven end-to-end execution capabilities with continuous innovation and ability to deliver projects in a timely fashion.

Weakness

Real estate business is capital intensive and requires significant expenditure for land acquisition and project development, long gestation in nature and prone to time and cost overruns etc..

As of June 30, 2025, all ongoing projects and most of its upcoming projects are in the Western Suburbs of Mumbai. Consequently, it is exposed to risks from economic, regulatory and other changes as well as natural disasters in the Western Suburbs of Mumbai.

As of June 30, 2025, it have 85 unsold units in its Completed Projects and 167 unsold units in its ongoing projects.

Redevelopment projects are subject to risks involving existing tenants, occupants and applicable Government regulations which may affect project completion times and costs.

Not able to successfully identify and acquire suitable land or development rights may affect its business and growth prospects. Moreover its bids may not always be accepted for society redevelopment projects.

Have experienced negative cash flows in the last three fiscal years.

The company in the past not complied and/or delayed in complying with reporting requirements under the provisions of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 and it may be subject to regulatory action by RBI. Similarly in the past it has not complied and/ or delayed with provisions with reporting requirements under the provisions of Companies Act, 2013 and its Rules.

It have recorded losses in its discontinued operations (division of film production and distribution, namely Anand Pandit Motion Pictures) in the past financial years ended March 31, 2023, wherein Profit/ (loss) for the year was ? (5.15) million.

Company’s promoter, certain members of the promoter group, group companies and directors and related entities have interests in number of ventures, which are in businesses similar to ours and this may result in potential conflicts of interest with the company.

The trademark and copyright of Lotus Developers is owned by Anand Kamalnayan Pandit, the promoter and assigned to the company by him through a deed of assignment dated December 17, 2024.

Valuation

Consolidated revenue for the fiscal ended March 2025 was up by 19% to Rs 549.68 crore. With OPM jump to 52.6% (from 34.2%) the operating profit was higher by strong 83% to Rs 288.97 crore. The net profit after MI was up by 90% to Rs 227.41 crore.

On an expanded equity (at upper price band of Rs 150), the EPS for FY25 was Rs 4.7 and the PE works out to 31.9 times. And the P/BV works out to 4.3 times and the EV/Sales is 12.9 times.

Against this largely Mumbai realty market focused companies such as Arkade Developers, Keystone Realtor, Suraj Estates, Sunteck Realty, Mahindra Lifespace, Hubtown and Kalpataru quotes at a PE of 23 times, 44.6 times, 13.6 times, 39.4 times, 91.4 times, 93.8 times and 317.4 times respectively of their FY25 EPS and a P/BV of 4.1 times, 2.8 times, 1.5 times, 1.8 times, 3 times, 1.8 times and 1.7 times. Valor Estates quotes at a P/BV of 9.9 times.

EV/sales (of FY25 sales) of Arkade Developers, Keystone Realtor, Suraj Estates, Sunteck Realty, Mahindra Lifespace, Hubtown, Kalpataru and Valor Estates works out to 9.7 times, 4.3 times, 3.4 times, 7.4 times, 24.6 times, 12.6 times, 8.4 times, 10.2 times, 9.2 times and 11. 8 times respectively.