Casagrand Premier Builder, one of the Chennai-based residential developers 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 company aims to raise Rs 1,100 crore through its public issue. The IPO comprises a fresh issue of up to Rs 1,000 crore and an offer for sale (OFS) of Rs 100 crore. The OFS comes from promoter Arun MN and Casagrand Luxor Private Ltd.
The face value of the IPO is set at Rs 2 per equity share.
Pre-IPO Placement and Allocation
The company is also open to a pre-IPO placement, which could bring in an additional Rs 200 crore, not exceeding 20 per cent of the fresh issue size. If successful, this placement will reduce the size of the IPO.
Casagrand Premier Builder IPO | Representative Image/Canva
The public issue of the company will follow the book-building process. 75 per cent of the shares will be available for qualified institutional buyers (QIBs), 15 per cent for non-institutional bidders, and 10 per cent for retail investors.
Utilisation of IPO Proceeds
The funds from the fresh issue will be used to strengthen the company's financial position. Out of the Rs 1,000 crore raised, Rs 150 crore will be utilised for repaying certain outstanding borrowings, while Rs 650 crore will be directed towards repaying the debts of its subsidiaries. The remaining amount will be allocated to general corporate purposes.
About the company
The company was founded by Arun MN in 2003 and has a strong presence in chennai with a 24 per cent in launches and 20 per cent of demand as on March 31, 2024.
In the fiscal year 2024, the company posted a revenue from operation of Rs 2,613.99 crore at a compound annual growth rate (CAGR) of 18.02 per cent. Its profit after tax (PAT) surged by 32.63 per cent, increasing from Rs 146.08 crore in FY 2022 to Rs 256.95 crore in FY 2024.
