IPO Details
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Schedule of Casagrand Premier Builder Limited IPO
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Allotment of bids
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About Casagrand Premier Builder Limited IPO
Casagrand Premier Builder Limited IPO is an IPO aggregating up to ₹1,100 crores. It consists of an offer for sale aggregating up to ₹100 crores and a fresh issue aggregating up to ₹1,000 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Casagrand Premier Builder Limited IPO
- Prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company.
- Prepayment or repayment, in full or part, of all or a portion of certain outstanding borrowings availed by their wholly owned subsidiaries namely 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 wholly owned step-down subsidiaries namely CG Anchor and Danub Homes, through investment in such wholly owned subsidiaries/step-down subsidiaries.
- General corporate purposes.
Casagrand Premier Builder Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Aggregating up to ₹100 crores |
Fresh Issue | Aggregating up to ₹1000 crores |
EPS (₹) For the year ended March 31, 2024 | 14.71 |
Casagrand Premier Builder Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not less than 75% of the Issue |
Non-Institutional Investors (NIIs) | Not more than 15% of the Issue |
Retail Individual Investors | Not more than 10% of the Issue |
Industry Outlook
Growth in India’s residential sector has been fuelled by rapid urbanisation rate in the last two decades, coupled with improved per capita earnings, growth in service industries, nuclearization of families, and other macro-economic factors. The organised residential real estate sector in India ended on a strong note in 2023, with sales climbing to an all-time high and unit launches touching a decadal peak. The sector is forecasted to maintain a robust trajectory in 2024 as well, supported by strong underlying market fundamentals.
Residential real estate segment in Chennai has witnessed notable growth over the past two decades with the increasing economic activity in the city. With the evolution of IT/ITeS sector and manufacturing industries in the city in the 2000s, Chennai attracted graduates and working professionals from various parts of the state and the country for better employment opportunities.
Residential activity in Chennai is dominated by local developers contributing to approximately 80% of the overall supply and the top ten developers in the city contributing approximately 52% of the overall supply during the period from 1st January 2017 to 31st March 2024.
The year 2022 and 2023 witnessed a strong bounce back in supply and demand from the previous two years. Year 2023 has been a reflection of stabilised recovery and market expansion that has been witnessed across asset classes in Chennai.
Company Information
Casagrand Premier Builder Limited is a well-known residential brand in Chennai (Tamil Nadu) (Source: CBRE Report). The company has extended and established their presence in many micro-markets in Chennai (Tamil Nadu), offering apartments of varying sizes and independent villas with lifestyle amenities under luxury, mid-end and affordable categories, They also operate in other cities in South India such as Bengaluru (Karnataka), Hyderabad (Telangana) and Coimbatore (Tamil Nadu).
Casagrand Premier Builder Limited IPO Strengths
Casagrand Premier Builder Limited is the largest residential real estate developer in Chennai, Tamil Nadu.
They are the largest developer in the residential segment and are a well-known residential brand in Chennai (Tamil Nadu) with a market share of approximately 24% in terms of launches and ~ 20% in terms of demand for residential properties between January 1, 2017 and March 31, 2024. (Source: CBRE Report)
They have curated a well-established brand with quality product offerings for their customers.
As per a CBRE Report, they are a fast-growing residential brand expanding their presence in Chennai (Tamil Nadu) over the past five years. They have developed many projects which include apartments of varying sizes and independent villas with lifestyle amenities such as swimming pools, gymnasiums, yoga rooms, games rooms, outdoor sports courts, reflexology paths, sandpits, trampolines, salons and spas, party halls, convenience stores, business centres, kids’ learning centres, guest rooms, open terraces and open green lawns. They strategically introduce offerings with amenities based on the needs of the location and community.
End-to-end in-house execution with focus on quick turnaround.
They have developed in-house capabilities for every stage of the project development life-cycle, commencing from identification and acquisition of land parcels to execution, which involves designing, planning, construction, marketing and sales and culminating in project delivery. As of May 31, 2024, they had delivered 101 completed projects with an aggregate saleable area of 2.145 crore square feet comprising 15,062 units.
Risks of Casagrand Premier Builder Limited IPO
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A majority of the company’s real estate development activities are geographically concentrated in Chennai, Tamil Nadu (representing 82.38%, 78.72% and 79.16% of the total saleable area of completed projects, ongoing projects and forthcoming projects, respectively as of May 31, 2024).Varying market conditions in Chennai, Tamil Nadu may affect their ability to ensure sale of their projects and the pricing of units in such projects, which may adversely affect their business, results of operations and financial condition.
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Significant increases in prices or shortage of or delay or disruption in supply of construction materials could adversely affect their construction cost and timelines.
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The company’s business and growth plan could be adversely affected by the incidence and change in the rate of property taxes and stamp duties.
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The real estate industry in India has witnessed significant downturns in the past, and any significant downturn in the future could adversely affect their business, financial condition and results of operations.
All Financial Information about Casagrand Premier Builder Limited
Particulars (in Rs. Crores)
Particulars (in Rs. Crores)
Comparison with peers
| Parameter | Casagrand Premier Builder Limited | Prestige Estates Projects Limited | Sobha Limited |
|---|---|---|---|
Revenue from Operations for the year ended March 31, 2024 (₹ in crores) | 2613.990 | 7877.100 | 3096.946 |
P/E | - | 296.25 | 326.00 |
EPS (Basic) (₹) | 14.71 | 6.13 | 5.18 |
Return on Net Worth (%) | 36.72% | 13.80% | 1.95% |
NAV per share (₹) | 40.07 | 294.39 | 265.07 |
Anchor Investor Information
The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
JM Financial Limited Motilal Oswal Investment Advisors Limited
Registrar for the IPO is KFin Technologies Limited
Business Model
The company earns its revenue through the following sources:
- Selling quality residential properties with a focus on understanding the contemporary lifestyle needs of homebuyers, delivering a seamless living experience, and ensuring customer satisfaction.
Company Growth Trajectory
As of May 31, 2024, the company had 101 completed projects with a saleable area of 2.15 crore square feet, 42 ongoing projects with a saleable area of 3.36 crore square feet and 17 forthcoming projects with an estimated saleable area of 1.32 crore square feet. In fiscal 2024, 2023 and 2022, they realised pre-sales volumes (i.e., saleable area or units sold during the year for which the booking amount has been received) of 0.72 crore square feet of saleable area or 4,872 units, 0.56 crore square feet of saleable area or 3,966 units, and 0.412 crore square feet of saleable area or 2,817 units, respectively.
Their profit for the year has increased from ₹146.08 crore in fiscal 2022 to ₹226.124 crore in fiscal 2023 and to ₹256.95 crore in fiscal 2024 at a CAGR of 32.63%. As of March 31, 2024, they had a net debt to equity ratio of 4.68 (calculated as the net debt divided by total equity).
Company Market Position
Casagrand Premier Builder Limited is the largest developer in the residential sector and are a well-known residential brand in Chennai (Tamil Nadu) with a market share of approximately 24% in terms of launches and approximately 20% in terms of demand between January 1, 2017 and March 31, 2024.
Casagrand Premier Builder Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 18,76.822 | 2491.953 | 2613.990 |
Total Income | 2,669.75 | 2513.68 | 1,892.71 |
Profit Before Tax (₹ crores) | 194.845 | 313.228 | 341.840 |
Net profit / (loss) (₹ crores) | 146.075 | 226.124 | 256.947 |
EBITDA (₹ crores) | 410.947 | 641.803 | 813.714 |
EPS (₹) | 8.36* | 12.95 | 14.71 |
*Basic and Diluted EPS for Fiscal 2022 includes EPS of ₹0.25from discontinued operations
Casagrand Premier Builder Limited Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹crores) | 194.845 | 313.228 | 341.840 |
Net Cash from Operating Activities (₹ crores) | (4.240) | (674.243) | (120.130) |
Net Cash from Investing Activities (₹ crores) | 8.985 | (73.721) | 616.462 |
Net Cash from Financing Activities (₹ crores) | (89.791) | 955.949 | 725.734 |
Cash and Cash Equivalents (₹ crores) | 82.039 | 294.554 | 281.958 |
How To Check Allotment Status of Casagrand Premier Builder Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Casagrand Premier Builder Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the KFin Technologies Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Casagrand Premier Builder Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Casagrand Premier Builder Limited IPO FAQs
What is the Casagrand Premier Builder Limited IPO?
The Casagrand Premier Builder Limited IPO has an issue size aggregating up to ₹1,100 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Casagrand Premier Builder Limited IPO?
KFin Technologies Limited is the registrar for this IPO.
Where can I read more about Casagrand Premier Builder Limited business?
You may read more about Casagrand Premier Builder Limited and its IPO from the company’s draft red herring prospectus (DRHP) here
