Upcoming IPO! Casagrand Premier files DRHP for Rs 1,100-cr issue with Sebi

Upcoming IPO alert! Tamil Nadu-based leading real estate developer Casagrand Premier Builder has filed the draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (Sebi) to raise Rs 1,100 crore through an initial public offering (IPO).
 

As per the DRHP papers, Casagrand Premier Builder is offering a fresh issue of equity shares worth up to Rs 1,000 crore, and an offer for sale with promoters offloading shares worth nearly Rs 100 crore. Arun MN and Casagrand Luxor are among the promoters who are offloading their stake via the public issue.
 

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

The company further said that in consultation with the book-running lead managers, it may consider a further issue of equity shares through a preferential offer or any other method aggregating up to Rs 200 crore, as the 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 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, and not more than 15 per cent shall be available for allocation to non-institutional bidders. Not more than 10 per cent of the offer shall be available for allocation to retail individual investors, as per the DRHP papers.

The company proposes to utilise the proceeds from the fresh issue to the extent of Rs 150 crore for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company. From the remaining amount, the company will use Rs 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 and wholly-owned step-down subsidiaries, and for general corporate purposes.

Incorporated in 2003, Casagrand Premier Builder offers a diverse range of residential projects. These include apartments of various sizes and independent villas, catering to luxury, mid-range, and affordable segments, all under the ‘Casagrand’ brand, with a particular focus on mid-range offerings. The company has also extended its operations to other South Indian cities like Bengaluru (Karnataka), Hyderabad (Telangana), and Coimbatore (Tamil Nadu).