Casagrand Premier Builder receives Sebi nod to launch ₹1,100 crore IPO

Upcoming IPO: Chennai-based residential real estate developer Casagrand Premier Builder received market regulator Securities and Exchange Board of India's (SEBI) nod to launch an initial public offer (IPO).

The firm received final observations from SEBI on December 31, 2024, which in market parlance suggests approval for the IPO. Casagrand Premier Builder had filed draft papers for the IPO on September 19, 2024.

Casagrand Premier Builder IPO Details

Casagrand Premier Builder IPO is a mix of fresh share sale of up to ₹1,000 crore and an offer for sale (OFS) of up to ₹100 crore by the promoter-selling shareholders. The OFS component consists of sale of equity shares up to ₹50 crore each by Arun MN and Casagrand Luxor Private Ltd.

The company, in consultation with the book-running lead managers, may consider raising up to ₹200 crore, as part of pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

The company plans to use the proceeds from the fresh issue for multiple purposes. It plans to allocate ₹150 crore to repay or reduce some of its outstanding borrowings, ₹650 crore to repay or reduce borrowings taken by its wholly-owned subsidiaries and the remaining funds for general corporate purposes.

JM Financial and Motilal Oswal Investment Advisors are the book-running lead managers to the issue while KFin Technologies is the registrar to the issue.

About Casagrand Premier Builder

Casagrand Premier Builder is a well-known residential brand in Chennai, Tamil Nadu with a market share of approximately 24% in terms of launches and approximately 20% in terms of demand during the period January 1, 2017, to March 31, 2024.

The company offers a diverse range of residential projects, including apartments of various sizes and independent villas, catering to luxury, mid-range, as well as affordable segments. It sells all its residential projects under "Casagrand" brand, with a particular focus on mid-range offerings.

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%.

Other IPO approvals

Apart from Casagrand Premier Builder, Sebi also granted IPO approvals to Dr Agarwal Health Care, Highway Infrastructure and Regreen Excel EPC.