Real firm Casagrand plans IPO by next December to fund land acquisition

Will invest Rs 5,000 crore in residential development in the next one year, has already raised Rs 400-500 crore from KKR for land acquisition in Chennai and Bengaluru

Chennai-based residential property major Casagrand said that the company is planning to go for an initial public offering by December 2022, the company’s managing director, Arun MN said on Thursday.

This comes on the heels of the company raising around Rs 1,200 crore from international investors including KKR and Apollo Global. The company is also planning to invest around Rs 5,000 crore in residential real estate development in the next one year, including Rs 3,000 crore in Chennai, Rs 1,250 crore in Bengaluru and Rs 750 crore in other markets. It has already raised Rs 400-500 crore from KKR for land acquisition in Chennai and Bengaluru.

The initial public offering is also being planned mainly to fund its land acquisition plans. It has already lined up plans to acquire around Rs 10,000 crore worth of land and has already acquired Rs 6,000 crore worth of land last fiscal. Motilal Oswal and JM jointly were appointed as bankers for the IPO. The company is expected to dilute up to 15 per cent of its holdings in the proposed IPO.

“We are looking at a valuation of upwards of Rs 6,000 crore, up to Rs 8,000 crore. The IPO is likely to happen by December 2022,” Arun said. After Chennai, Coimbatore and Bengaluru, the company plans to expand its presence in the Hyderabad market this year. The company has set a target to achieve sales of Rs 3,750 crore in comparison to last year’s Rs 2,300 crore and plans to establish a sales office in the US and Dubai.

Casagrand said that it is going to strengthen its presence in Bengaluru and Hyderabad, as these two markets will contribute 35 per cent while Chennai will contribute 65 per cent of total revenue.