Grand Housing IPO

Grand Housing Limited IPO Strengths

Established Regional Brand and Reputation

Grand Housing Limited is an established and reputed developer with over 20 years of experience in Chennai’s residential and industrial plotted developments. Their “Grand Magnum” brand is widely recognizable in the region, built on a reputation for ethical dealings and clear property titles. This trust attracts high-net-worth individuals, multinational corporations, and target middle-class customers.

Large, Strategically Located Land Reserves

The company maintains large, fully paid-for land reserves (2,672,123 sq. ft. as of March 31, 2025) secured through two decades of acquisition expertise. These reserves are situated in high-growth areas around Chennai, including key industrial and residential zones, providing a steady project pipeline, protection against land inflation, and the ability to achieve relatively higher profit margins.

Efficient Project Execution and Customer Focus

Grand Housing Limited employs a detailed internal system for project execution, ensuring timely and on-budget completion with consistent quality. Their customer-centric approach focuses on developing desirable plots with amenities like black-topped roads, CCTV, and walkways. This efficiency, combined with customer goodwill, translates into strong sales and high customer referrals.

Resilient Financial Performance from Business Model

The company’s focus on plotted developments, which require lower capital investment and offer a quicker turnaround time, enables healthy financial performance. This business model has driven significant growth, with the EBITDA Margin increasing to $66.93\%$ in Fiscal 2025 and the Debt-to-Equity Ratio remaining low ($0.50$ as of March 31, 2025), reflecting prudent financial management.

Experienced Promoters and Management

Grand Housing Limited benefits from a team of experienced promoters and senior management with considerable expertise in the Indian real estate industry. Their collective knowledge in land acquisition, regulatory navigation, and modern marketing (including digital) drives business growth and enables the identification and execution of suitable projects that successfully meet evolving customer preferences in Tamil Nadu.

More About Grand Housing Limited

Grand Housing Limited is a prominent real estate developer in India, primarily engaged in plotted developments across Tamil Nadu, with a strong concentration in and around Chennai. The company focuses on acquiring land parcels, developing key infrastructure such as roads, water supply, sewage systems, and power connections, and converting them into developable and saleable plots. In some cases, Grand Housing Limited also consolidates contiguous parcels to create large, economically viable projects.

Business Segments

Grand Housing Limited operates under two major segments:

• Residential Plots – These plots typically range from 600 sq. ft. to 2,400 sq. ft., priced between ₹1,500 and ₹5,000 per sq. ft. They are primarily sold to homeowners seeking to build individual houses or villas. Each development includes black-topped roads, streetlights, walkways, avenue trees, fencing, and CCTV surveillance to ensure customer convenience and safety.

• Industrial Plots – Ranging from 2 acres to 9 acres, priced between ₹5 million and ₹30 million per acre, these plots cater to enterprises for setting up factories, warehouses, and other facilities. The main focus in this segment is on road development and providing access-ready land.

Strategic Location and Market Presence

The company’s operations are strategically based in Chennai, a city known for its urban growth, cultural richness, and robust industrial base. As South India’s largest industrial and commercial hub, Chennai offers strong connectivity through its ports and infrastructure, attracting both residents and businesses.

Project Portfolio and Land Reserves

As of March 31, 2025, Grand Housing Limited has:

• 39 Completed Projects

• 13 Ongoing Projects

• 7 Upcoming Projects: Together, these projects cover approximately 598.31 lakh sq. ft. of saleable area. In addition, the company holds land reserves of about 83.13 lakh sq. ft. (1,908.52 acres), earmarked for future development.

Industry Outlook

The Indian real estate market is witnessing robust expansion. Valued at approximately USD 482 billion in 2024, it is projected to reach around USD 1,184 billion by 2033, reflecting a compound annual growth rate (CAGR) of nearly 10.5% between 2025 and 2033. Other projections estimate growth from USD 584 billion in 2024 to USD 845 billion by 2030, implying a CAGR of about 7.3%.

Key growth drivers include rapid urbanisation, rising disposable incomes, favourable government policies such as RERA and Smart Cities initiatives, and large-scale infrastructure investments that continue to enhance land accessibility and valuation.

Focus on Plotted Developments: Residential and Industrial Land

Within the broader real estate industry, plotted developments—covering both residential and industrial land—are gaining strong traction. For residential plots, rising preference for customised homes, particularly in emerging urban and suburban corridors, has significantly boosted demand. On the industrial front, India’s growing manufacturing and logistics ecosystem, supported by the “Make in India” initiative and the expansion of e-commerce, has increased the need for large industrial plots suitable for factories and warehouses.

Between January 2022 and May 2025, developers launched nearly 4.7 lakh residential plots valued at around ₹2.4 lakh crore across major Tier I and II cities.

Growth Drivers and Key Figures

• Urban population growth: By 2026, around 600 million people (about 40% of India’s population) are expected to live in urban areas.

• Infrastructure expansion: Improved transport, highways, and metro networks are pushing real estate growth in suburban areas.

• Industrial and corporate demand: Rising manufacturing and logistics facilities are fuelling industrial plot demand.

• Land scarcity in metros: Developers are shifting towards peripheral plotted developments, ensuring quicker turnaround and lower execution risk.

How Will Grand Housing Limited Benefit

• Grand Housing Limited is well-positioned to capitalise on India’s rapid real estate growth, especially within the plotted development segment that aligns with its core business.

• Rising urbanisation and growing demand for customised residential spaces will enhance the company’s residential plot sales in and around Chennai.

• Expansion of industrial corridors and government initiatives like “Make in India” will boost demand for the company’s industrial plots.

• Increasing infrastructure projects across Tamil Nadu, including highways and metro networks, will improve land value and accessibility in its target regions.

• Shifting developer preference toward plotted developments ensures faster project execution and quicker revenue realisation for the company.

• With an established brand presence and experienced management, Grand Housing Limited can efficiently scale operations across high-growth zones.

• The company’s large land reserves will enable it to meet rising residential and industrial land demand over the next decade.

Peer Group Comparison

• There are no comparable listed companies in India that engage in a business similar to that of the company. Accordingly, it is not possible to provide an industry comparison as per the DRHP.

Key Strategies for Grand Housing Limited

Focus on Plotted Developments with Emphasis on the Industrial Segment

Grand Housing Limited plans to strengthen its focus on plotted developments, particularly within the industrial segment. Industrial projects offer quicker execution, fewer regulatory hurdles, and higher margins due to larger land parcels and less price-sensitive corporate buyers, ensuring efficient capital utilisation and accelerated growth.

Acquiring Land in High-Growth Strategic Locations

The company aims to expand its land reserves by acquiring plots in Chennai’s fast-growing residential and industrial corridors. Targeting key regions like Sengadu, Mappedu, Koppur, Araneri, and Illuppur, Grand Housing Limited intends to leverage Chennai’s connectivity, manufacturing ecosystem, and rising real estate demand for sustainable expansion.

Strengthening Operations Through Modern Technology

Grand Housing Limited plans to enhance efficiency by adopting advanced technologies such as CAD for layout design, AI for geographic growth evaluation, and CRM systems for customer management. Integration of property tech solutions like virtual tours and blockchain will further improve transparency, service quality, and operational excellence.

Enhancing Brand Visibility and Customer Relationships

To build a stronger market presence, Grand Housing Limited intends to invest in strategic marketing campaigns, social media outreach, and digital storytelling. The company also plans to launch loyalty and referral programmes that foster trust, ensure repeat investments, and position the brand as a customer-centric real estate developer.