Business · India Bureau
Capital Group fund buys stake in Sri Lotus Developers for ₹190 crore
Smallcap World Fund has acquired a 1.95% stake in the real estate developer through an open-market transaction. The purchase comes as the company's promoter divests shares to comply with minimum public shareholding requirements.
LSN India ·
Capital Group's Smallcap World Fund has purchased a 1.95% stake in Sri Lotus Developers for approximately ₹190 crore in an open-market transaction, marking a significant investment in the real estate developer. The acquisition follows promoter Anand Kamalnayan Pandit's decision to sell 2% of his shareholding to meet regulatory minimum public shareholding norms.
The transaction reflects investor confidence in the mid-cap real estate sector, with the U.S.-based fund committing substantial capital to the developer. Sri Lotus Developers, which operates in the residential and commercial real estate space, continues to attract institutional interest as it navigates growth opportunities in India's property market.
Under Securities and Exchange Board of India regulations, listed companies must maintain a minimum public shareholding threshold. The promoter's share sale demonstrates compliance with these requirements while simultaneously drawing fresh institutional capital into the company. The open-market nature of the transaction indicates the shares were acquired through regular stock exchange trading rather than through a direct placement or block deal arrangement.