Casagrand Premier Builder Receives SEBI Approval for Rs 1,100 Crore IPO

Chennai-based real estate developer Casagrand Premier Builder Limited has received final approval from the Securities and Exchange Board of India (SEBI) to raise Rs 1,100 crore through an Initial Public Offering (IPO). The company is one of the significant players in Chennai's residential sector, holding a market share of approximately 24% in terms of launches and around 20% in demand from January 1, 2017, to March 31, 2024

The IPO, which was filed with SEBI on September 19, 2024, is set to include a combination of fresh issue shares and an offer for sale. The fresh issue will raise up to Rs 1,000 crore, while the offer for sale will account for Rs 100 crore. The promoter selling shareholders, Arun MN and Casagrand Luxor Private Ltd., will offer up to Rs 50 crore each through the sale of equity shares. The company may also consider further equity shares through a preferential offer or any other means, which could add up to Rs 200 crore. However, any pre-IPO placement will be limited to 20% of the size of the fresh issue, potentially reducing the fresh issue size.

A significant portion of the fresh issue proceeds will be allocated toward clearing the company’s borrowings. About Rs 150 crore will go toward repaying or prepaying outstanding borrowings, while Rs 650 crore will target reducing the exceptional borrowings incurred by its wholly-owned subsidiaries, including CG Magick, CG Civil Engineering, CG Garden City, and others. The remaining funds will be used for general corporate purposes, contributing to the company’s further development and operations.

Casagrand, founded in 2003 and led by Arun MN, has emerged as one of the leading residential brand in Chennai. The company’s portfolio spans a diverse range of projects, from luxury apartments to affordable independent villas, under the well-recognized “Casagrand” brand. Notably, the company has focused on providing homes in the mid-range segment while delivering high-quality, timely solutions. 

The IPO will be managed by JM Financial Limited and Motilal Oswal Investment Advisors Limited, with KFin Technologies Limited serving as the registrar for the offer. These partnerships indicate the high level of expertise involved in this strategic move, aimed at further strengthening the company's position in the real estate sector.

Casagrand’s upcoming public listing will not only help it manage its debts but also open doors for more growth opportunities. The company’s expansion plans signal a strategic shift to tap into the growing demand for residential spaces, particularly in Chennai and Bengaluru, where the brand has a strong foothold. 

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