Casagrand Premier Builder, a Chennai-based real estate developer, is now able to launch its much-anticipated ₹1,220-crore IPO and what is the first step for the company in the capital market for expansion and growth to come."
The IPO comprises fresh equity shares of ₹1,200 crore and an offer for sale (OFS) of ₹20 crore by the promoters Arun MN and Casagrand Luxor Pvt Ltd. The company could also raise up to ₹240 crore through pre-IPO placement, thereby reducing the size of the fresh issue.
Casagrand will use the proceeds mainly for debt repayment and for general corporate purposes. Of the funds raised, ₹250 crore will be earmarked for company debt repayment and ₹650 crore for the company’s subsidiary debt. The remaining capital will support corporate expansion and operational needs and strengthen the company’s balance sheet.
Casagrand was founded in 2003 and is one of the largest residential developers in Chennai with a strong presence in Bengaluru, Hyderabad and Coimbatore. It offers mid-end housing projects under the “Casagrand” brand and also luxury and affordable housing. It has 103 completed projects with 21.79 million sq ft; 57 ongoing projects with 44.10 million sq ft; and 21 upcoming projects with 23.81 million sq ft.
The IPO comes at a time when real estate in India is in a strong position with constant demand and urban housing is booming. Casagrand’s expansion plans are in alignment with this trend and it is well placed to take advantage of lifestyle apartments and integrated housing demand.
Motilal Oswal Investment Advisors Ltd and DAM Capital Advisors will be the lead managers for the IPO with shares going to be listed on BSE and NSE. It will be a good IPO to offer to investors because Casagrand has a successful brand, diversified portfolio and there is high potential in India’s booming housing market.
The company will benefit from the listing and move towards greater transparency and corporate governance as Casagrand is in the public market.
