Casagrand Premier Builder files draft papers for Rs 1,100-crore IPO: Check details here

Casagrand Premier Builder IPO

Casagrand Premier Builder, the largest developer in the residential sector in Chennai, has planned to raise Rs 1,100 crore through initial public offering. It filed preliminary papers with capital markets regulator SEBI on September 19.

The IPO comprises a fresh issuance of equity shares worth Rs 1,000 crore, and an offer-for-sale of Rs 100 crore worth of shares by existing shareholders.

Promoters Arun MN and Casagrand Luxor will be selling shares worth Rs 50 crore each in the offer-for-sale.

The real estate developer may also raise Rs 200 crore through a preferential offer (pre-IPO placement) before filing of the red herring prospectus with the Registrar of Companies (ROC). If the pre-IPO placement is completed, the said amount will be reduced from the fresh issue.

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Incorporated in 2003, Casagrand claimed to be a well-known residential brand in Chennai with a market share of approximately 24 percent in terms of launches and around 20 percent in terms of demand, between January 2017 and March 2024. It also operates in Bengaluru, Hyderabad, and Coimbatore.

It has 101 completed projects with a saleable area of 21.45 million square feet, 42 ongoing projects with a saleable area of 33.60 million square feet, and 17 forthcoming projects with an estimated saleable area of 13.15 million square feet, as of May 2024.

The 100 percent promoter-owned (Arun MN and Casagrand Luxor company) company will utilise Rs 150 crore for repaying its own debt, and further Rs 650 crore for repaying debt of its subsidiaries. The remaining IPO funds will be used for general corporate purposes.

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The total outstanding borrowings on its books stood at Rs 4,020.7 crore as of June 2024.

Casagrand Premier Builder, which competes with south-based real estate developers like Prestige Estates Projects, Sobha, Shriram Properties, Keystone Realtors, and Brigade Enterprises, has recorded net profit at Rs 256.9 crore for the year ended March 2024, growing 13.6 percent over Rs 226.1 crore in the previous year on higher other income. Revenue for the fiscal year 2024 grew by 4.9 percent to Rs 2,614 crore compared to the previous year.

EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 3.9 percent to Rs 341.2 crore, but margin dropped 13 bps to 13.05 percent during the same period.

JM Financial, and Motilal Oswal Investment Advisors have been appointed as the merchant bankers to the issue.