Casagrand Premier Builder gets SEBI Clearing IPO for ₹1,100 crore

An investment-grade initial public offering, of ₹1,100 crore was approved for mopping by the Securities and Exchange Board of India or SEBI in favor of a leading realty developer from the city, Chennai-based Casagrand Premier Builder. While of the fresh issuances ₹ 1,000 crore, the remaining ₹100 cr will come with an offer from the selling promoter in an Offer for Sale process.

It filed draft papers with the stock exchanges in September 2024. The draft approval was on December 31, 2024. The OFS will see the sale of equity shares worth ₹50 crore each by Arun MN and Casagrand Luxor Private Ltd. The company may also consider a pre-IPO placement of up to ₹200 crore. If this placement is successful, the size of the fresh issue will be adjusted accordingly.

The proceeds from the fresh issue will be used for several purposes. The ₹150 crore amount is to be repaid or partly repaid of the outstanding borrowings, ₹650 crore to be partly repaid of the borrowings taken by its wholly owned subsidiaries, and the balance amount towards general corporate purposes. JM Financial and Motilal Oswal Investment Advisors are the lead managers to the issue. KFin Technologies is the registrar of the issue.

Casagrand Premier Builder is the premier residential brand in Chennai. The company accounts for almost 24% of market launches and holds a 20% demand from January 2017 to March 2024. The company releases its residential offerings under the brand “Casagrand” and ranges from high-end apartments, and middle-range houses, to budget villas.

The firm has ensured good financial performances, as growth in operations revenues improved at an 18.02% CAGR from FY 2022 ₹1,876.82 crore to ₹2,613.99 crores in FY 2024. Correspondingly, its PAT increased 32.63%, from ₹146.08 crore FY 2022 to ₹256.95 crore FY 2024, respectively.