Casagrand Premier Builder Limited IPO

01At a glance

What the company does: develops apartments and villas in the luxury, mid-end and affordable categories in Chennai, Coimbatore, Bengaluru and Hyderabad; at June 2025 it had 103 completed projects of 21.79 million sq ft, 57 ongoing projects of 44.10 million sq ft and 21 forthcoming projects of 23.81 million sq ft (DRHP p.27).

Who pays it: home buyers; mid-end homes were 83.89% of revenue from customers in the June quarter (DRHP p.32). Chennai held 82.65% of completed saleable area, 75.10% of ongoing and 56.61% of forthcoming (DRHP p.32).

Why it is raising money: ₹2,500.00 million to repay the company's borrowings, ₹6,500.00 million to repay borrowings of eleven subsidiaries, and the rest for general purposes (DRHP p.28). The loans typically carry a 2% prepayment penalty (DRHP p.32).

How fast it has grown: pre-sales from ₹35,468 million in FY23 to ₹62,178 million in FY25, while reported revenue rose from ₹24,920 million to ₹26,959 million (DRHP p.30, DRHP p.207).

The one thing to understand: a large, debt-funded developer. Borrowings rose from ₹24,502 million in March 2023 to ₹44,722 million in June 2025, net debt was 4.29 times equity, and operating cash flow was negative in three of the four periods shown (DRHP p.30, DRHP p.206, DRHP p.924).

02The business, in plain words

A residential developer buys land or development rights, gets approvals, launches a project, takes bookings and instalments from buyers during construction, and borrows for land and building.

A family in Chennai books a mid-end apartment at a new Casagrand launch → the family pays instalments as construction progresses → Casagrand funds land and construction partly with those payments and partly with loans → the apartment is handed over when the project completes.

Earnings equation: Profit ≈ homes delivered × (price − land, construction and approval cost) − interest. The company capitalises part of its interest into construction cost; its EBITDA adds that interest back (DRHP p.207).

03Where the money comes from

Source: DRHP p.206, DRHP p.207. Q1 FY26 is three months.

04The growth record

Source: DRHP p.30, DRHP p.206, DRHP p.924. Q1 FY26 is three months.

Our arithmetic: revenue compounded about 4.0% a year from FY23 to FY25 and profit after tax about 1.8%; EBITDA margin moved from 25.8% to 30.4% (DRHP p.30, DRHP p.206).

05What the growth is made of

Bookings, not reported revenue. Pre-sales grew 75% from FY23 to FY25 while revenue grew 8% (our arithmetic, DRHP p.30, DRHP p.207). Ongoing saleable area tripled from 14.13 million sq ft in March 2023 to 44.10 million sq ft in June 2025 (DRHP p.207). Revenue in the June quarter was ₹1,721 million against pre-sales of ₹31,961 million (DRHP p.30, DRHP p.207).

06Earnings quality

Profit fell in FY25 and turned to a loss in the June quarter, when finance costs were ₹1,079.77 million (DRHP p.30, DRHP p.924). Over FY23 to June 2025 operating cash flow totalled negative ₹2,654.72 million against ₹6,850.74 million of profit (our arithmetic, DRHP p.30, DRHP p.924). The statutory auditors of the company and some subsidiaries made observations under the Companies (Auditor's Report) Order in FY23 to FY25 that required no adjustment (DRHP p.30).

07The balance sheet

Source: DRHP p.30, DRHP p.206.

The document states that the ₹12,000 million fresh issue is larger than the June 2025 net worth (DRHP p.28).

Our arithmetic: net debt of ₹36,705.61 million at March 2025 was 4.5 times the FY25 EBITDA of ₹8,183.24 million (DRHP p.30, DRHP p.206).

08What the money is for

Source: DRHP p.28.

09Who is selling

Source: DRHP p.27.

10Promoters

The promoters are Arun MN and Casagrand Luxor Private Limited (DRHP p.27). Proceedings against the promoters include 4 criminal, 3 tax, 1 regulatory and 1 civil matter, involving ₹28.59 million (DRHP p.31).

11Who already owns it

Source: DRHP p.28, DRHP p.29.

12What changed just before the IPO

• Earlier filing: a draft prospectus filed on 19 September 2024 drew complaints to SEBI and the lead manager, some from home buyers; it was withdrawn on 22 December 2025, the day the lead manager received a complaint about it from D Vijay (DRHP p.65).

• Refiling: the current draft is dated 24 December 2025 (DRHP p.1).

• Loss: a loss of ₹325.12 million in the June 2025 quarter (DRHP p.30).

• Debt: up ₹2,424 million in the June quarter (our arithmetic, DRHP p.30).

• Public company: converted from a private limited company, with a fresh certificate of incorporation issued on 11 August 2023 (DRHP p.3).

• Share split: the face value was sub-divided from ₹10 to ₹2 in 2023 (DRHP p.506).

• Bonus issue: six shares for every one held, 149,700,000 shares in all, on 6 September 2023 (DRHP p.168).

• Auditors: no change of statutory auditor in the three years before the filing (DRHP p.161).

13Capacity and expansion

Capacity is land, approvals and funding. At June 2025 the company had 44.10 million sq ft under construction and 23.81 million sq ft forthcoming (DRHP p.27). The proceeds reduce debt and do not fund new land (DRHP p.28).

14Market size and industry structure

The CBRE report cited in the offer document says the company had about 25% of Chennai's residential launches and 18% of its demand between January 2017 and June 2025 (DRHP p.27). newboard has not tested the report's statements.

15Competitive position

What the document claims, and what it rests on:

• Chennai leadership: the largest residential developer there, citing CBRE (DRHP p.27).
• A large pipeline: 57 ongoing and 21 forthcoming projects (DRHP p.27).

Against that: one city, heavy borrowing, reliance on real-estate financing, construction-cost risk and many buyer disputes (DRHP p.31, DRHP p.32).

16Peers the company named

Source: DRHP p.205. Peer P/E uses prices on 15 December 2025. The table also lists Puravankara, Shriram Properties and Mahindra Lifespace Developers (DRHP p.205).

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Chennai. Most completed and ongoing area is in one city (DRHP p.32).
• Delivery. 57 projects to complete, with penalties for delay (DRHP p.32).
• Debt. Borrowings 4.6 times equity (DRHP p.206).
• Complaints. Filed with SEBI and the lead manager after the earlier draft (DRHP p.65).
• Buyer disputes. 233 RERA proceedings (DRHP p.31).
• Land. Growth depends on buying land at acceptable cost (DRHP p.32).

18Litigation and regulatory matters

Source: DRHP p.31. Most proceedings against the company and subsidiaries are complaints under the Real Estate (Regulation and Development) Act: 233 of them, involving ₹527.66 million (DRHP p.31). The criminal proceedings against the company concern construction-worker welfare law and a ₹0.70 million booking refund (DRHP p.31).

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• What the complaint that led to withdrawal alleged, beyond the summary table, in the pages read.
• How much of the debt is at subsidiary level and at what cost, beyond the ₹6,500 million to be repaid.
• When the ongoing projects are due and how many are behind schedule, in the pages read.
• What the ₹1,658.60 million of claims against the company concern, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What did the December 2025 complaint allege, and why was the earlier draft withdrawn the same day?
2. How much of the ₹44,722 million of borrowings will remain after the issue, and at what interest rate?
3. How many of the 57 ongoing projects are behind their RERA completion dates?
4. Why was operating cash flow negative in FY23, FY24 and the June 2025 quarter?
5. How will the company fund land for the 21 forthcoming projects?

1Sources and cited facts

This study was read from 1 document the company filed. The 47 figures it cites are listed under the document each came from, with the page and the sentence as printed.