IPO

Casagrand Premier Builder IPO Review Casagrand Premier Builder IPO Review Why I Am Cautious About This IPO Disclaimer: This article is based solely on disclosures contained in the Draft Red Herring Prospectus (DRHP). Investors should perform their own due diligence and compare valuation with listed peers before making investment decisions. Casagrand Premier Builder has emerged as one of the large residential developers in South India, particularly in Chennai. While the growth story is attractive on the surface, a detailed reading of the DRHP reveals several concerns relating to debt, litigation, governance complexity and group structure. 1. IPO Appears to be a Debt Reduction Exercise A major portion of the fresh issue proceeds is proposed to be utilized towards repayment or prepayment of borrowings of the company and its subsidiaries. Particulars Amount Repayment / prepayment of company borrowings ₹2,500 Million Repayment / prepayment of borrowings o...