Upcoming IPO: Casagrand Premier builder files DRHP to raise ₹1100 crore. Check details

Casagrand Premier Builder IPO: Chennai-based real estate developer Casagrand Premier Builder Limited has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,100 crore through an initial public offering (IPO) on September 19, as per the company.

The company, a leading player in the residential sector in Chennai, holds a market share of approximately 24% in terms of launches and 20% in terms of demand between January 2017 and March 2024, the company said in an official statement,

The IPO included a fresh issue of equity shares worth ₹1,000 crore and an offer for sale of shares valued at ₹100 crore by Promoter Selling Shareholders. As part of the offer for sale, equity shares worth ₹50 crore will be sold by both Arun MN and Casagrand Luxor Private Limited. The company may also consider issuing equity shares through a pre-IPO placement aggregating up to ₹200 crore, which could reduce the size of the fresh issue if completed.

The offer will follow the book-building process, with 75% of the offer allocated to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and the remaining 10% to retail individual investors (RIIs).

Allocation of proceeds

Casagrand plans to use ₹150 crore from the fresh issue for the prepayment or repayment of certain borrowings. Additionally, ₹650 crore will be allocated for repaying borrowings availed by its wholly owned subsidiaries, including CG Magick, CG Civil Engineering, and CG Grace, among others. The remaining funds will be used for general corporate purposes.

Incorporated in 2003 under the leadership of Arun MN, Casagrand Premier has established a strong presence in key micro-markets across Chennai, offering a diverse portfolio of residential projects. These range from mid-range apartments to luxury villas, all under the "Casagrand" brand, with a significant focus on mid-range properties.

The company has in-house expertise covering the entire project development lifecycle, from land acquisition to design, construction, marketing, and sales. Casagrand has also expanded into other South Indian cities, including Bengaluru, Hyderabad, and Coimbatore.

As of May 2024, Casagrand had completed 101 projects with a saleable area of 21.45 million square feet. The company is currently working on 42 ongoing projects, with an additional 17 projects in the pipeline. It achieved pre-sales of 7.24 million square feet in FY 2024.

According to a CBRE report, Casagrand is recognized for its high-quality, timely delivery of residential projects. Among its ongoing projects are ‘Casagrand Vivacity’ in Bengaluru and ‘Casagrand Suncity Phase I’ in Chennai. Completed projects include ‘Casagrand Supremus’ and ‘Casagrand Zenith Phase I,’ both in Chennai.

Casagrand has also ventured into the commercial and warehousing sectors. It completed two warehousing projects in Chennai in 2018 and is currently working on four more. The company is also developing commercial office projects in Chennai, with two such projects already under construction.

Casagrand Premier’s revenue from operations grew at a compound annual growth rate (CAGR) of 18.02%, increasing from ₹1,876.82 crore in FY 2022 to ₹2,613.99 crore in FY 2024. Its profit after tax also surged from ₹146.08 crore to ₹256.95 crore during the same period, reflecting a CAGR of 32.63%.

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