Capital Group-managed Smallcap World Fund has acquired a 1.95 per cent stake in Mumbai-based Sri Lotus Developers & Realty for about Rs 190 crore, as the developer’s promoter sold shares to meet minimum public shareholding requirements.
The transaction was completed through an open-market purchase at Rs 199 a share, according to a report by Business Standard. Promoter Anand Kamalnayan Pandit sold 97.70 lakh shares, representing 2 per cent of the company’s issued and paid-up equity share capital.
Following the sale, promoter and promoter-group ownership in Sri Lotus Developers fell from 81.87 per cent to 79.87 per cent. Smallcap World Fund, which is managed by investment manager Capital Group, acquired a 1.95 per cent holding in the company.
Sri Lotus Developers’ shares closed at Rs 207 apiece on the BSE on Thursday, giving the company a market capitalisation of Rs 10,116.58 crore. The transaction comes as the company expands its focus on luxury residential redevelopment projects in Mumbai.
The developer reported pre-sales of Rs 408 crore in the first quarter of the 2026-27 financial year, a 567 per cent increase from the same period a year earlier. Profit after tax rose 71 per cent to Rs 44 crore during the quarter, according to the report.
Sri Lotus had around Rs 623 crore in net cash and no net debt at the end of the quarter. Its estimated earnings before interest, taxes, depreciation and amortisation margin stood at 36 per cent, while return on equity was reported at 26 per cent.
The company has a pipeline of 20 projects with an aggregate gross development value of around Rs 20,000 crore. These projects are located across Mumbai neighbourhoods including Juhu, Versova, Carter Road, Bandstand and Prabhadevi.
Sri Lotus has projected a compound annual growth rate of 82 per cent in revenue and 73 per cent in profit after tax between financial years 2026 and 2029. The company is relying on redevelopment opportunities across the Mumbai metropolitan region to support that expansion.
According to figures cited by the company, Mumbai has an estimated 13,500 buildings awaiting redevelopment, while less than 7 per cent of the potential opportunity has been addressed. The estimate covers a large pool of older or otherwise eligible buildings where redevelopment projects have not yet been completed.
The share sale also enables the promoter group to comply with Securities and Exchange Board of India requirements on minimum public shareholding. The transaction increases the public float while bringing a global investment manager into the company’s shareholder base.
Sri Lotus’s project pipeline and its projected financial growth remain linked to the approval, execution and delivery of redevelopment projects across Mumbai. The company’s reported next milestones are the progression of its 20-project pipeline and the conversion of identified redevelopment opportunities into active projects.
