Sri Lotus Developers & Realty IPO — Grey Market Premium (GMP) Analysis

As of July 27–28, 2025, the grey market premium (GMP) for Sri Lotus Developers IPO was ranging between ₹32 and ₹37 per share, based on the upper end of the price band at ₹150 per share.

As of July 29, 2025, the IPO is commanding a GMP of ₹40, pushing the estimated listing price to ₹190, representing a 26.67% premium over the issue price of ₹150. This translates to an estimated profit of ₹4,000 per lot (based on 1 lot = 105 shares). Read More: Sri Lotus Developers IPO GMP.

Key Factors Driving the GMP

1. Celebrity and Influencer Backing
   The IPO gained considerable attention due to private placements to high-profile individuals such as Shah Rukh Khan, Amitabh Bachchan, the Roshan family, and well-known investor Ashish Kacholia. Although there’s no guaranteed gain for these investors at listing, their association has significantly boosted investor confidence and interest in the IPO.
2. Limited Availability and Strong Demand
   The early subscription by marquee investors suggests tight supply on listing day, leading to a higher perceived value in the grey market.
3. Robust Financial Performance
   Sri Lotus Developers reported a healthy EBITDA margin of approximately 53%, which stands out when compared to peers with margins ranging between 11% and 37%. The company also operates with relatively low debt, which further strengthens its appeal among investors.

IPO Details and Timeline

• Issue Size: ₹792 crore through a fresh issue of approximately 5.28 crore shares
• Price Band: ₹140 to ₹150 per share
• IPO Opening Date: July 30, 2025
• IPO Closing Date: August 1, 2025
• Allotment Finalization: August 4, 2025
• Listing Date: Expected on August 6, 2025
• Use of Proceeds: To fund ongoing real estate projects and for general corporate purposes

What Investors Should Know

The current GMP range suggests a potential listing premium between 21% and 25%. However, it's worth noting that the GMP has recently declined from earlier highs of ₹45 to ₹50, indicating a slight cooling in sentiment.

While GMP can be a useful indicator of market interest, it is an informal, unofficial metric. Actual listing performance can be influenced by several factors including overall market conditions, investor demand, and broader sentiment on the listing day.