DRA Homes Launches Rs 125 Crore ESOP Programme, Eyes IPO in Next Three Years

CHENNAI: As part of its preparation for a possible Initial Public Offering (IPO) listing, Chennai-based real estate company DRA Homes has rolled out a Rs 125 crore Employee Stock Option Programme (ESOP). This programme grants 5% ownership to its 325 employees, effectively pushing the company's valuation to Rs 2,500 crore. The fully granted ESOP, which vests over a period of three years, is expected to create ten crorepati employees, reflecting the company's commitment to employee growth and wealth creation.

The announcement aligns with DRA Homes’ strategic roadmap as the company prepares for an IPO within the next three years. DRA Homes currently holds a valuation of Rs 2,500 crore, supported by a strong operational and financial foundation. For the current financial year, the company is targeting Rs 800 crore in revenue, building on last year’s revenue of Rs 525 crore with a Profit After Tax (PAT) of Rs 50 crore. The company presently holds inventory worth Rs 2,700 crore, underscoring the scale and depth of its ongoing and upcoming developments.

Ranjeeth Rathod, Managing Director of DRA Homes, said, “Our ESOP programme reflects a simple belief: if the company grows, our people must grow with us. True wealth creation is the most meaningful benefit we can pass on to our employees. Equity gives people choice and the freedom to build their lives the way they want. Through this ESOP, we want our team to experience that sense of security, independence, and long-term value. Granting 5% ownership to employees ensures that everyone who contributes to DRA’s journey becomes a stakeholder in its future.”

Rathod added, “The company is planning for IPO listing in the next three years. The ESOP is the first step towards that direction and we want to make all our employees shareholders of the company. The ESOP will be distributed to employees in three phases over the period of three years. Before going for IPOs, I have certain metrics and numbers that I want the company to achieve in terms of revenue.” He emphasized that employees must have worked with the company for at least a year to be eligible for the programme.

The company currently employs 315 people and is engaged in 16 projects in and around Chennai. DRA Homes is also planning to expand its footprint by entering the Pune real estate market. Rathod commented, “In terms of adopting modern technology, the company is experimenting with the usage of 3D printing in constructing villas. As of now, we are constructing only one villa in Karanai in Kancheepuram district. Aluminium formwork is the future for the real estate sector to deal with the shortage of skilled labourers in the industry.”

Aluminium formwork is a modern construction technique that uses reusable, lightweight aluminium panels to create moulds for casting concrete structures such as walls, slabs, and columns. This innovative approach not only enhances efficiency but also addresses the growing challenge of skilled labour shortage in the real estate sector.