Casagrand Premier Builder IPO

About Casagrand Premier Builder

Founded in 2003 and headquartered in Chennai, Casagrand Premier Builder is a prominent real estate developer specializing in residential projects across Tamil Nadu and South India. With a market share of approximately 24% in terms of launches and 20% in demand in Chennai between January 2017 and March 2024, the company has established a strong presence in various micro-markets. Casagrand offers a diverse portfolio, including luxury, mid-end, and affordable housing, with over 101 completed projects totaling 21.45 million square feet and 15,062 units as of May 31, 2024. 

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Financials of Casagrand Premier Builder

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*All figures are in ₹ Crores.

Issue size

Funds Raised in the IPO	Amount
Overall	₹1100 crores
Fresh issue	₹1000 crores
Offer for sale	₹100 crores

Utilisation of proceeds

Purpose	INR crores (%)
Funding capital expenditure	800 (80%)
General corporate purposes	200 (20%)

Strengths

• Established market leader in Chennai with a 24% share in residential project launches between 2017 and 2024.
• Diversified housing portfolio catering to luxury, mid-end, and affordable segments.
• In-house capabilities across the project lifecycle, from land acquisition to sales and delivery.
• High Return on Net Worth at 36.72%, indicating efficient capital utilization.

Risks

• Geographical concentration, with over 78% of projects located in Chennai, exposes the company to regional market risks.
• Execution risk due to 46% of project costs yet to be incurred as of September 2024.
• Market risk, with 42% of the launched residential area unsold, potentially affecting cash flows.
• Exposure to the cyclical nature of the real estate sector, including demand fluctuations and regulatory changes.
• Expansion into new markets like Bengaluru, Hyderabad, and Pune may present integration and operational challenges.