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 received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 1100 crore through an initial public offering (IPO).
The Company had filed its IPO papers with Sebi on September 19, 2024.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 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.
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.
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.
