Realtor Casagrand Premier Builder gets Sebi nod for Rs 1,100 crore IPO

Chennai-based real estate developer Casagrand Premier Builder 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 had filed its IPO papers with Sebi on September 19, 2024.

 

The IPO, with a face value of Rs 2 per equity share, comprises a fresh issue of up to Rs 1,000 crore and an offer for sale of up to Rs 100 crore by the promoters.

 

The offer for sale includes equity shares worth Rs 50 crore each by founder, chairman, and managing director 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 other methods aggregating up to Rs 200 crore, provided the pre-IPO placement does not exceed 20 per cent of the fresh issue size. If such a placement is completed, the size of the fresh issue will be reduced accordingly.

 

The proceeds from the fresh issue will be allocated as follows: Rs 150 crore for prepayment or repayment of certain outstanding borrowings availed of by the company; Rs 650 crore for prepayment or repayment of borrowings availed of by its wholly owned subsidiaries and step-down subsidiaries through investments in these entities; and the remainder for general corporate purposes.

 

Founded in 2003, Casagrand has established its presence in key micro-markets in Chennai, Tamil Nadu, offering a range of properties including apartments of various sizes and independent villas. The company caters to luxury, mid-range, and affordable segments, with a primary focus on mid-range offerings.

 

JM Financial Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers for the issue, while KFin Technologies Limited is the registrar to the offer.

 

In the financial year 2024, Casagrand’s revenue from operations stood at Rs 2,614 crore.