Grand Housing Files Draft Papers for IPO: A Major Step in Chennai's Real Estate Market
Chennai-based real estate firm Grand Housing has filed its Draft Red Herring Prospectus (DRHP) with SEBI for its proposed IPO, marking a significant step in the company's growth and the broader real estate market in Tamil Nadu.
Grand HousingIpoReal EstateTamil NaduPlotted DevelopmentsReal Estate NewsOct 06, 2025
The offering consists only of the offer-for-sale (OFS) component. The company’s promoter, Vijay Surana J, will be selling about 3.55 crore of his shares with a face value of Rs 5 per equity share in the company. As of the date of the DRHP, Surana held an 87.84 per cent stake in the company with about 28.04 crore equity shares of Rs 5 each.
Incorporated in 2004, Grand Housing is a real estate developer with a primary focus on plotted developments in Tamil Nadu, particularly in and around Chennai. The company's business model involves acquiring parcels of land and building basic infrastructure such as roads, power connections, sewage, and water supply, thereby converting it into developable land. In some cases, the company has worked to acquire contiguous parcels of land to create larger areas that are more economically viable for further development.
Grand Housing's plotted developments are divided into two segments: the residential segment, comprising the development of residential plots, and the industrial segment, comprising the development of large contiguous land parcels to be used for industries. The company develops and sells residential land plots mainly to homeowners for the construction of houses and villas. The sizes of its residential plots typically range from 600 square feet to 2,400 square feet, with the price of an individual plot ranging from Rs 1,500 per square foot to Rs 5,000 per square foot.
As of March 31, 2025, Grand Housing’s land reserves comprised approximately 1,908.52 acres of land, excluding ongoing projects, completed projects, and upcoming projects. This significant land bank underscores the company’s potential for future growth and development.
The company’s financial performance has been robust. Its revenue from operations was Rs 156.66 crore during the financial year 2025 (FY25), compared with Rs 94.61 crore during FY23. Its net profit was Rs 84.59 crore during FY25 against Rs 30.92 crore during FY23. This growth trajectory is a testament to the company’s strategic approach and market demand for its developments.
The IPO is expected to provide liquidity to the promoter and potentially attract new investors, further solidifying Grand Housing’s position in the real estate market. The proceeds from the sale of shares will be used to fund future projects and enhance the company’s infrastructure capabilities.
In summary, Grand Housing’s filing of the DRHP for its IPO marks a significant milestone in the company’s journey. With a strong land bank, robust financial performance, and a focus on plotted developments, the company is well-positioned to continue its growth and contribute to the real estate landscape in Tamil Nadu.
Frequently Asked Questions
What is the primary focus of Grand Housing's real estate business?
Grand Housing primarily focuses on plotted developments in Tamil Nadu, particularly in and around Chennai. This includes both residential and industrial segments.
How much land does Grand Housing own as of March 31, 2025?
As of March 31, 2025, Grand Housing’s land reserves comprised approximately 1,908.52 acres of land, excluding ongoing projects, completed projects, and upcoming projects.
What is the size range of residential plots developed by Grand Housing?
The sizes of Grand Housing’s residential plots typically range from 600 square feet to 2,400 square feet, with the price of an individual plot ranging from Rs 1,500 per square foot to Rs 5,000 per square foot.
What are the financial highlights of Grand Housing for FY25?
Grand Housing’s revenue from operations was Rs 156.66 crore during FY25, and its net profit was Rs 84.59 crore, showing significant growth compared to the previous financial year.
What is the purpose of the IPO by Grand Housing?
The IPO by Grand Housing consists only of the offer-for-sale (OFS) component, where the company’s promoter, Vijay Surana J, will be selling about 3.55 crore of his shares. The proceeds will be used to fund future projects and enhance the company’s infrastructure capabilities.
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