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Business News/ Markets / Ipo/  Realty firm Casagrand eyes Rs800 crore IPO
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Realty firm Casagrand eyes Rs800 crore IPO

The developer has aggressive growth plans and plans to invest nearly Rs5,000 crore in the coming year in residential development projects in Bengaluru, Chennai and other southern Indian property markets such as Hyderabad

Motilal Oswal Financial Services and JM Financial Ltd have been appointed as bankers for the IPO.  Photo: iStockPremium
Motilal Oswal Financial Services and JM Financial Ltd have been appointed as bankers for the IPO.  Photo: iStock

BENGALURU : Chennai-based real estate firm Casagrand Builder Pvt Ltd is aiming to file for an initial public offering (IPO) in 2022, and raise about 800 crore mainly to fuel future growth, said a top company executive.
Motilal Oswal Financial Services and JM Financial Ltd have been appointed as bankers for the IPO.
The developer has aggressive growth plans and plans to invest nearly 5000 crore in the coming year in residential development projects in Bengaluru, Chennai and other southern Indian property markets such as Hyderabad.
Casagrand is also in talks with real estate focused non-banking financial company (NBFC) KKR India Asset Finance Ltd (KIAFL), the local arm of private equity firm KKR & Co, to raise a total of 400-500 crore of structured debt across three projects in Chennai and Bengaluru. Of this, the first transaction would be about 150-180 crore for the first project. The company is raising the debt primarily at the land-buying stage of the project.
“We believe the IPO market is good and even in real estate, the Lodha (Macrotech Developers)    IPO earlier this year went well. Real estate is a capital consuming business and an IPO would help us in raising equity capital for the kind of growth we intend to achieve. We will dilute about 15% of our holdings at an estimated valuation upwards of 5000 crore," said Arun Mn, founder and managing director of Casagrand.
The company is planning to strengthen its presence in Bengaluru as well as enter the Hyderabad market with an initial investment of 1500 crore, he said.
Serial defaults by Infrastructure Leasing and Financial Services Ltd (IL&FS), which came to light in mid-2018, made it difficult for NBFCs to raise money, impacting both fresh lending and disbursals of sanctioned loans.
Arun Mn said that besides talks with KKR, the company has also raised structured debt from Apollo Global Management in the recent past.
A KKR spokesperson declined to comment.
Casagrand achieved sales bookings of about 2300 crore in 2020-21 and is targeting around 3750 crore of sales booking in 2021-22.

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Published: 23 Sep 2021, 07:07 PM IST
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