New Delhi, May 15 -- Mumbai-headquartered mid-sized real estate developer Crystal Group, led by founder and managing director Mukesh M Doshi, is preparing to file its draft red herring prospectus (DRHP) soon, two people familiar with the development told VCCircle.
The developer, which has a significant presence across Mumbai's residential and commercial real estate markets and claims to have 10 ongoing projects and 30 completed developments in its portfolio, is looking to raise Rs 500-800 crore ($52-83 million), with a small offer-for-sale (OFS) component.
The company is targeting a valuation of about Rs 4,000 crore. "While the numbers are currently ambitious, it may have to soften the valuation target depending on investors' interest and feedback from the market," one of the persons cited above said, requesting anonymity.
The company currently generates an annual revenue of Rs 350-400 crore and profit of Rs 70-75 crore, the people said.
"The process is currently in its initial stage, with a broader plan to hit the market for fundraising. The groundwork is being prepared and projects are being streamlined for compliance purposes," the second person said.
Investment banking firm Unistone is understood to be helping the company navigate the preliminary process and is expected to work on the IPO mandate eventually.
"The banker has helped the developer raise capital recently and is working closely with the promoters to take them public," the people said.
Queries sent to spokespersons of the company and Unistone remained unanswered till the time of publishing this article.
Crystal Group's projects include Crystal Armus, 6 Crystal, and Crystal Paradise, among others.
The company's IPO plans come at a time when several real estate developers are tapping the public markets.
Mumbai-based Sri Lotus Developers, which has a comparable portfolio, raised around Rs 800 crore through a fresh issue in its IPO last year.
Although the conflict in West Asia briefly dampened public market momentum, activity is slowly reviving.
Blackstone-sponsored Bagmane Prime Offices REIT, which listed on May 15, raised around Rs 4,420 crore, including an OFS worth Rs 1,015 crore by Blackstone.
Over the past four-five years, developers across regions have increasingly tapped primary markets for fundraising, with several others now waiting for the right opportunity to launch IPOs. The primary market has remained supportive of real estate developers since 2020, marking a sharp turnaround from the subdued environment that prevailed earlier.
Chennai-based developer Casagrand has already secured regulatory approval and is expected to go public in due course. Another Chennai-based developer, DRA Homes, is also gearing up to file for an IPO.
Among larger peers, Bengaluru-based RMZ is preparing for an IPO and is currently negotiating a deal with Bain Capital and the Canada Pension Plan Investment Board (CPPIB) for fundraising.
Published by HT Digital Content Services with permission from VC Circle.