Casagrand Premier Builder receives SEBI clearance for ₹1,100 crore IPO, with market share in residential secto

Casagrand Premier Builder, the Chennai-based developer in the residential sector, has received final clearance from the Securities and Exchange Board of India to raise ₹1,100 crore through an initial public offering (IPO).

The IPO, with a face value of ₹2 per share, is a mix of a fresh issue of up to ₹1,000 crore and an offer for sale of up to ₹100 crore by Promoter Selling Shareholders.

The company has a market share of 24 per cent in terms of launches and approximately 20 per cent in terms of demand during the period January 1, 2017 to March 31, 2024, said a release.

The offer for sale consists of equity shares up to ₹50 crore each by Arun MN and Casagrand Luxor Private Ltd. The company may consider a further issue of equity shares through a preferential offer or any other method aggregating up to ₹200 crores, as pre-IPO placement shall not exceed 20 per cent of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced, the release said.

The offer is being made through the book-building process, wherein not less than 75 per cent of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15 per cent shall be available for allocation to non-institutional bidders, and not more than 10 per cent shall be available for allocation to retail individual investors.

The proceeds from the fresh issue to the extent of ₹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; ₹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.

Casagrand is also in South Indian cities like Bengaluru, Hyderabad and Coimbatore.