The ₹792-crore initial public offering (IPO) of Sri Lotus Developers continued to attract strong investor interest on Day 2 of bidding, with the issue already subscribed more than 5 times by July 31, 2025.

According to data from the NSE at 11:48 am, the IPO received bids for 21.44 crore shares against the offer size of 3.97 crore shares, underscoring high investor appetite across categories. Qualified Institutional Buyers (QIBs) led the charge, subscribing their quota over 5 times. Non-Institutional Investors (NIIs) followed closely, subscribing 6.5 times, while retail investors booked their portion nearly 5 times.

Market enthusiasm was also visible in the grey market. According to IPO Watch, the grey market premium (GMP) for Sri Lotus Developers surged to ₹196 per share, reflecting a 31% premium over the upper IPO price band of ₹150. Another tracker, Investorgain, reported a GMP of ₹194, up from 23% last week, indicating rising optimism ahead of listing.

Sri Lotus Developers, a Mumbai-based real estate firm, is known for its portfolio of ultra-luxury and luxury residential projects in Mumbai’s high-demand western suburbs. The IPO comprises a fresh issue at a price band of ₹140–₹150 per share and remains open for bidding from July 30 to August 1, 2025. Allotment is likely on August 2, with listing scheduled for August 6 on both NSE and BSE.

The company has completed 4 projects and currently has 5 under construction, with a pipeline of 11 new developments. It has already delivered 3.9 million sq ft and has another 3.8 million sq ft underway. Its financial growth has been strong, with revenue rising from ₹166 crore in FY23 to ₹518 crore in FY25. The company maintains industry-leading EBITDA and PAT margins, reinforcing its premium positioning.

Brokerages have shown confidence in the IPO:

Bajaj Broking, Angel One, and Anand Rathi have all recommended subscribing for the long term, citing strong demand for luxury housing, high returns on net worth (RoNW of 41.49%), and reasonable valuations in the context of the Mumbai real estate market.

The IPO is priced at a P/E of around 30–32x, and an EV/EBITDA of 24.5x, suggesting that while the issue is fully priced, long-term prospects remain favorable.

Choice Capital CEO Ratiraj Tibrewal also emphasized the long-term value, pointing to the company's strategic focus on redevelopment, joint ventures, and robust financials amid a booming luxury property market in India.

With robust demand from all investor segments and a rising GMP, Sri Lotus Developers' IPO is shaping up to be one of the most anticipated listings in the real estate space in 2025.