Sri Lotus Developers sets Rs 240 floor for 2.88 crore-share OFS

Sri Lotus Developers and Realty Limited has set a Rs 240 floor price for an offer for sale (OFS) of up to 2,87,95,818 shares, including a 50 lakh-share oversubscription option, scheduled for November 3 and November 4, 2026. Sri Lotus Developers has reserved a minimum 10% of the offer shares for retail investors.

What are Sri Lotus Developers' OFS price and maximum size?

Sri Lotus Developers has fixed the OFS floor price at Rs 240 per equity share in the promoter sale by Anand Kamalnayan Pandit. The base offer comprises up to 2,37,95,818 equity shares with a face value of Rs 1 each, representing 4.87% of the company’s total paid-up equity share capital. Non-retail allocations will be made at the cut-off price or higher, based on valid bids at or above the floor price.

The seller may additionally sell up to 50 lakh shares, equal to 1.02% of Sri Lotus Developers' paid-up equity capital, through the oversubscription option. If exercised, the offer would rise to 2,87,95,818 shares, representing 5.89% based on the disclosed 4.87% base offer and 1.02% option. The seller must notify BSE Limited and the National Stock Exchange of India Limited, or NSE, of an exercise of the option after trading hours and by 5 p.m. on November 3, 2026.

Sri Lotus Developers will conduct the sale through separate OFS windows on BSE and NSE, with NSE designated as the stock exchange and NSE Clearing Limited as the designated clearing corporation. Monarch Networth Capital Limited is the sole seller’s broker, carrying NSE broker code 06386 and BSE broker code 0197.

When can investors bid in Sri Lotus Developers' OFS?

Sri Lotus Developers will accept bids from non-retail investors on Tuesday, November 3, 2026, from 9:15 a.m. to 3:30 p.m. Indian Standard Time. Retail investors can bid on Wednesday, November 4, 2026, during the same hours, while non-retail investors may carry forward unallotted first-day bids if they indicated that choice on November 3.

Non-retail investors that carry forward unallotted bids may revise them on November 4 under the OFS Guidelines. The seller may cancel the full OFS after the first day if valid non-retail orders at or above Rs 240 are insufficient, in which case the November 4 retail window would not proceed.

Sri Lotus Developers has reserved at least 25% of the offer shares for mutual funds registered with the Securities and Exchange Board of India, or SEBI, and insurance companies registered with the Insurance Regulatory and Development Authority. The 25% reservation is conditional on valid bids at or above Rs 240, and any unsubscribed portion can be allocated to other non-retail bidders.

No single bidder, other than a mutual fund or insurance company, can receive more than 25% of the offer shares. Allocation in the non-retail category will follow price priority at multiple clearing prices, and oversubscribed bids at a clearing price on the November 4 carry-forward process will be allotted proportionately.

How does the retail reservation work in Sri Lotus Developers' OFS?

Sri Lotus Developers has reserved a minimum 10% of the offer shares for retail investors, subject to valid bids. A retail investor is an individual whose aggregate bids across BSE and NSE are no more than Rs 2 lakh, and the exchanges will determine the retail quantity using the Rs 240 floor price.

Retail investors can submit a price bid above Rs 240 or bid at the cut-off price, defined as the lowest price at which shares are sold to non-retail investors on November 3. Bids below that cut-off price will not be considered for allocation, while Sri Lotus Developers has specified a nil retail discount.

If retail demand exceeds available shares at a clearing price or the cut-off price, allotment will be proportionate. Any retail shares left after retail allocation may be allocated to non-retail investors that carried forward their unallotted bids, while an unsubscribed non-retail portion may be allocated to the retail category.

An individual can bid in both categories, but retail bids become ineligible if combined retail and non-retail bid value exceeds Rs 2 lakh. Retail bidders must provide 100% margin in cash or cash equivalents, calculated at Rs 240 for cut-off bids and at the bid value for price bids.

Why is Sri Lotus Developers conducting the OFS and what could stop it?

Sri Lotus Developers states that the OFS is being undertaken, among other purposes, to achieve minimum public shareholding under Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, and Regulation 38 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. The transaction is a sale by promoter Anand Kamalnayan Pandit and does not involve an issue of new shares by Sri Lotus Developers.

The promoter sold 97,70,000 shares, representing 2.00% of issued and paid-up equity capital, through an open-market sale on September 10, 2026. Sri Lotus Developers applied to SEBI on October 14, 2026 for relief from the 12-week cooling-off period, and SEBI granted the exemption on October 19, 2026 to facilitate compliance with applicable minimum public-shareholding requirements.

The seller may withdraw the OFS before it opens on November 3, 2026, which would result in a 10-trading-day cooling-off period before another stock-exchange OFS. The seller can also cancel the offer in full for insufficient demand at or above Rs 240 or a settlement default, with cancellation requests accepted by the exchanges until 5 p.m. on the first day.

Promoters and promoter-group members of Sri Lotus Developers, apart from the seller, cannot participate in the OFS and their bids will be rejected. In the event of a bidder’s pay-in default, a penalty of 10% of the order value will be charged and credited to the stock exchange’s Investor Protection Fund.

How will Sri Lotus Developers' OFS bids settle?

Sri Lotus Developers' OFS will settle on a trade-for-trade basis. Non-institutional investors and institutional investors depositing 100% of order value upfront on November 3 will settle on November 4, while institutions bidding without the full upfront deposit will follow existing secondary-market settlement rules.

Retail bids placed on November 4 will settle on November 5, as will carried-forward non-retail bids supported by 100% upfront payment. Non-institutional investors bidding in the first-day non-retail category must deposit 100% of bid value in cash upfront, whereas institutional investors may bid without depositing the full amount upfront.

Retail orders with the full bid value deposited may be modified or cancelled during the November 4 trading window. Non-retail orders funded in full can be modified or cancelled on November 3, while carried-forward bids may be revised on November 4 in accordance with the OFS Guidelines.

Conclusion

Sri Lotus Developers has set a Rs 240 floor for a base promoter sale of 2,37,95,818 shares and may expand the transaction by 50 lakh shares. The structure sets aside at least 10% of offer shares for retail investors and at least 25% for mutual funds and insurance companies, subject to the stated bid conditions.

The next disclosed decision point is November 3, 2026, when the seller may exercise the 50 lakh-share oversubscription option by 5 p.m. Investors will also watch whether valid non-retail demand at or above Rs 240 is sufficient, because the seller can cancel the OFS and not proceed with the November 4 retail session.