Casagrand Premier Builder Secures SEBI Approval for ₹1,100 Crore IPO Launch

Chennai-based residential real estate developer Casagrand Premier Builder has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The approval, known as final observations in market terms, was granted on December 31, 2024, following the company’s filing of draft papers on September 19, 2024.

The IPO will consist of a fresh issue of shares worth up to ₹1,000 crore and an offer for sale (OFS) amounting to ₹100 crore by the promoter-selling shareholders. The OFS will involve the sale of equity shares worth ₹50 crore each by Arun MN and Casagrand Luxor Private Ltd. Additionally, the company may consider a pre-IPO placement of up to ₹200 crore, depending on discussions with its lead managers. If this pre-IPO placement is executed, the size of the fresh issue will be reduced accordingly.

The company plans to utilize the funds raised from the fresh issue to strengthen its financial position. ₹150 crore is earmarked for the repayment or reduction of existing borrowings, ₹650 crore will be used to reduce debt within its wholly-owned subsidiaries, and the remaining funds will be allocated for general corporate purposes.

JM Financial and Motilal Oswal Investment Advisors are acting as the book-running lead managers for the IPO, while KFin Technologies has been appointed as the registrar for the issue.

Casagrand Premier Builder is a leading residential real estate brand in Chennai with a market share of approximately 24% in terms of new launches and around 20% in demand from January 1, 2017, to March 31, 2024. The company offers a wide array of residential properties, including apartments of various sizes and independent villas, catering to luxury, mid-range, and affordable housing segments. Most of its projects are focused on mid-range housing and are sold under the "Casagrand" brand.

The company has shown steady financial growth, with its revenue from operations increasing at a compound annual growth rate (CAGR) of 18.02%, rising from ₹1,876.82 crore in FY 2022 to ₹2,613.99 crore in FY 2024. Profit after tax surged from ₹146.08 crore to ₹256.95 crore during the same period, reflecting a CAGR of 32.63%. This financial momentum, combined with its strong market presence, positions Casagrand Premier Builder for further expansion through its upcoming IPO.