Chennai's Casagrand gears up for Rs 1,100 cr IPO

CHENNAI: Casagrand Premier Builder of Chennai with a market share of about 24 per cent in terms of launches and 20 per cent in terms of demand during the period January 1, 2017 to March 31, 2024, has filed its draft red herring prospectus (DRHP) with the 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 (OFS) of up to Rs 100 crore by promoter selling shareholders. The OFS 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 crore, as pre-IPO placement shall not exceed 20 per cent 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 per cent of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, and not more than 15 per cent shall be available for allocation to non-institutional bidders. Not over 10 per cent 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 and CG Civil Engineering, 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.

Casagrand has also expanded to other locations such as Bengaluru, Hyderabad, and Coimbatore. As of May 31, 2024, it 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.