Grand Housing IPO

Strengths · 7

• 01The company has completed 39 projects, 21 residential and 18 industrial, in and around Chennai since its incorporation in 2004.
• 02EBITDA margin rose from 46.60% in FY2023 to 50.14% in FY2024 and 66.93% in FY2025.
• 03Profit after tax rose from Rs 30.93 crore in FY2023 to Rs 58.42 crore in FY2024 and Rs 84.59 crore in FY2025.
• 04Return on equity was 35.96% and return on capital employed was 35.60% in FY2025.
• 05Debt to equity fell from 1.18 in FY2023 to 0.50 in FY2025, and the current ratio rose from 1.85 to 3.80.
• 06Debt service coverage ratio was 2.98 in FY2025, up from 1.05 in FY2024.
• 07The company has 13 ongoing projects and 7 upcoming projects, 10 of the 13 ongoing ones residential.

Risks · 10

• 01All ongoing projects are in and around Chennai, so a slowdown in that one market hits the whole business.
• 02Net cash from operating activities was negative Rs 64.47 crore in FY2025 and negative Rs 55.64 crore in FY2023, because land and plots inventory absorbed cash.
• 03Other income was Rs 18.25 crore in FY2025 against Rs 7.80 crore in FY2024 and Rs 0.34 crore in FY2023, so a part of pre-tax profit does not come from plot sales.
• 04The entire offer is a sale of 3,55,00,000 shares by promoter Vijay Surana J, and the company will receive no money from it.
• 05Promoters hold 95.48% before the issue, and the selling promoter's weighted average cost of acquisition is nil because most shares came from a split and bonus.
• 06The company has borrowed from related parties, including Rs 90.69 crore from Ghisuba Capital Holdings Private Limited as of 31 March 2025, and lent funds as well, with loans of Rs 89.46 crore shown as current assets.
• 07Revenue from operations was Rs 156.66 crore in FY2025 against Rs 156.00 crore in FY2024, so sales growth was flat in the latest year.
• 08Total borrowings were Rs 123.21 crore as of 31 March 2025, up from Rs 92.80 crore a year earlier.
• 09An income tax dispute of Rs 0.18 crore for assessment year 2013-14 is not provided for as a contingent liability.
• 10The company must acquire suitable land at the right price, and the document lists inability to complete upcoming projects on time as a top risk.

Grand Housing Limited is a real estate developer focused on plotted developments in Tamil Nadu, mainly in and around Chennai. It was incorporated as Grand Housing Private Limited on 21 June 2004 and became a public limited company in August 2025. It sells under the Grand Magnum brand.

The company buys land parcels and builds basic infrastructure on them, such as roads, power connections, sewage and water supply. This turns the land into developable plots. It has two segments. The residential segment sells plots of 600 to 2,400 square feet, mainly to homeowners who build houses and villas, at Rs 1,500 to Rs 5,000 per square foot. The industrial segment develops large contiguous land for industries.

As of 31 March 2025, the company had completed 39 projects, 21 residential and 18 industrial. It had 13 ongoing projects, 10 residential and 3 industrial, and 7 upcoming projects. All of its completed and ongoing projects are in and around Chennai and are 100% owned by it. One completed industrial project, Valarpuram, brought in more than Rs 30 crore in a single transaction.

In FY2025 the company sold 207 plots covering 1.41 million square feet. In FY2024 it sold 537 plots covering 1.94 million square feet, and in FY2023 it sold 219 plots covering 0.53 million square feet. The company had 64 permanent employees as of 31 March 2025, and its attrition rate in FY2025 was 5.74%.

The company's promoters are Vijay Surana J, Suyash Surana and Chavi Jain. Vijay Surana J is the Chairman and Managing Director. The registered office is in Anna Nagar, Chennai.

The industry

The CRISIL report in the document says plotted developments in Chennai have moved from an unorganised market run by local players to a more structured one with organised developers. Land values in peripheral areas grew at a CAGR of around 13% over FY2021 to FY2025, against 6% for built-up properties. Capital values of residential projects in Chennai grew at a CAGR of 4-9% in the same period, and residential supply in Chennai grew at a CAGR of 40-45%.