Chennai: Casagrand Premier Builder, the largest developer in the residential sector 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, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise Rs 1,100 crore through an initial public offering (IPO).
The IPO with a face value of Rs 2 per equity share is a mix of fresh issue of up to Rs 1,000 crore and an offer for sale of up to Rs 100 crore by Promoter Selling Shareholders.
The offer for sale consists of the sale of equity shares up to Rs 50 crore each by Arun MN and Casagrand Luxor Private Ltd.
The company, in consultation with the book-running lead managers, may consider a further issue of equity shares through a preferential offer or any other method aggregating up to Rs 200 crores, as pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The Offer is being made through the book-building process, wherein not less than 75% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, and not more than 15% shall be available for allocation to non-institutional bidders. Not more than 10% of the offer shall be available for allocation to retail individual investors.
The proceeds from the fresh issue to the extent of Rs 150 crore will be used for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company; Rs 650 crore for prepayment or repayment, in full or part, of all or a portion of certain exceptional borrowings availed by its wholly owned Subsidiaries namely CG Magick, CG Civil Engineering, CG Garden City, CG Milestone, CG Grace, CG Horizons, CG Smart Value Homes, CG Bizpark, CG Everta, CG Hyderwise, CG Lotus, CG Zingo, and wholly-owned step-down Subsidiaries namely CG Anchor and Danub Homes, through investment in such wholly owned Subsidiaries/ step-down Subsidiaries; and general corporate purposes.
Incorporated in 2003, under the leadership of Arun MN, Casagrand has expanded its presence across key micro-markets in Chennai (Tamil Nadu), offering a diverse range of residential projects. These include apartments of various sizes and independent villas, catering to luxury, mid-range, and affordable segments, all under the “Casagrand” brand, with a particular focus on mid-range offerings.
It has developed in-house capabilities for every stage of the project development life-cycle, commencing from identification and acquisition of land parcels to execution, which involves designing, planning, construction, marketing, and sales and culminating in project delivery.
Casagrand has also extended its operations to other South Indian cities like Bengaluru (Karnataka), Hyderabad (Telangana), and Coimbatore (Tamil Nadu). As of May 31, 2024, the company had completed 101 projects with a saleable area of 21.45 million square feet, was working on 42 ongoing projects spanning 33.60 million square feet, and had 17 upcoming projects with an estimated saleable area of 13.15 million square feet. In FY 2024, it achieved pre-sales volumes of 7.24 million square feet of saleable area.
According to a CBRE report mentioned in the DRHP, Casagrand is recognized for its residential brand in Chennai (Tamil Nadu), known for delivering high-quality, product-driven solutions within set timelines. Among its ongoing projects are ‘Casagrand Vivacity’ in Bengaluru’s Chikkanagamangala Village, ‘Casagrand Suncity Phase I’ in Melakottaiyur, Chennai, and ‘Casagrand Casablanca’ in Bengaluru’s Mallasandra Village. Its completed projects include ‘Casagrand Supremus’ and ‘Casagrand Zenith Phase I,’ both in Chennai.
As of May 31, 2024, Casagrand has a sales team of 825 people and opened an office in Dubai in November 2016 to serve non-resident Indians interested in properties across its operational cities. The company also has a history in warehousing through its former subsidiary, Casa Grande Distripark Private Limited, which completed two projects in Chennai at Mappedu and Mahindra World City Industrial Park in 2018, covering a total leasable area of 2.23 million square feet. As of May 2024, it had four additional warehousing projects in Chennai, alongside a commercial office project of 0.59 million square feet acquired in September 2023. Two other commercial office projects in Chennai, totaling 0.51 million square feet, are under construction.
Casagrand Premier’s revenue from operations increased at a CAGR of 18.02% from ₹ 1,876.82 crore in Fiscal 2022 to ₹ 2,613.99 crore in Fiscal 2024. Profit after tax increased from ₹ 146.08 crore in Fiscal 2022 to ₹ 256.95 crore in Fiscal 2024 at a CAGR of 32.63%.
JM Financial Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers to the issue and KFin Technologies Limited is the registrar to the offer.
