Casagrand Premier Builder IPO: Key Insights of Prospectus

Casagrand Premier Builder Private Limited submits DRHP with SEBI and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 1000 crore of equity shares and an offer for sale of up to Rs 100 crore of equity shares. The total aggregate size of a public issue will be up to Rs 1100 crore, and the total no. of equity shares that will be issued by the company has not yet been disclosed. The face value mentioned by the company is Rs 2 per each. This new IPO issue is being made through the book-building process with a reservation of less than 75% of the new offer reserved for Qualified Institutional Investors, not more than 15% reserved for NII and not more than 10% reserved for Retail Individuals. The opening and closing dates of this IPO have not yet been disclosed, and the price band at which you can bid for this IPO will announced soon by the company.

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About Casagrand Premier Builder Private Limited

Casagrand Premier Builder Private Limited was established in the year 2003 and is headquartered in Chennai, India. Casagrand is one of the companies that is highly visible in Indian real estate markets today. The company develops residential complexes that include apartments, villas, and luxury homes at various prices. Along with an authorized capital of Rs 50 crore and paid-up capital of Rs 34.93 crore, it clocked operating revenues of over Rs 500 crores for the fiscal ending March 2023. The growth of EBITDA was also robust at 575.49%. With successful forays beyond Chennai cities like Bengaluru and Coimbatore and planned forays in Pune and international markets through the Dubai office, Casagrand presents great investment prospects. The company is built on quality construction and timely delivery, and it has asserted that it would ensure customer satisfaction.

Casagrand Premier Builder IPO Objectives

The company plans to utilize the net proceeds from the fresh issue for various purposes, including Rs 150 crores for the repayment or prepayment, either in full or part, of its outstanding borrowings. Additionally, Rs 650 crores will be used for the repayment or prepayment of borrowings from its wholly-owned subsidiaries, including 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 step-down subsidiaries CG Anchor and Danub Homes, through investments in these subsidiaries. Further, the amount will be utilized for general corporate purposes. (As per Prospectus Filed by the company).

Financials of the Company

The company has seen good financial growth for the period ending March 31, 2024, as compared to March 2023. Assets have increased by 33.7% during the period, with the figure jumping from Rs 7,355.56 crore in March 2023 to Rs 9,837.21 crore in March 2024. Revenue is seen increasing at 4.9%, which moved up to Rs 2,491.95 crore in March 2023, reaching Rs 2,613.99 crore in March 2024. Profit after tax saw an improvement of 13.7%, moving up from Rs 226.12 crore in March 2023 to Rs 256.95 crore in March 2024. These figures indicate steady growth in assets, revenues, and profitability over the year.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by JM Financial Limited and Motilal Oswal Investment Advisors Limited, which is the book-running lead manager of this public issue. The company has appointed KFin Technologies Limited as the registrar for this public issue. Arun MN and Casagrand Luxor Private Limited are the identifiable promoters (s) of the company.

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