DRA Homes has begun laying the groundwork for a public listing, joining a growing group of real estate companies preparing to tap the capital markets in 2025 and 2026.

The company is targeting an IPO in the next three years, positioning itself among residential developers who are accelerating balance sheet clean-up, formalizing governance structures and expanding access to capital as housing demand in key urban markets remains stable.

Managing Director Ranjith Rathore said that the public listing will prove to be an important milestone in the growth of the company. “As we prepare for the IPO, building ownership among employees strengthens trust and supports long-term value,” he said, adding that broad-based equity partnerships strengthen engagement with customers and investors.

A wave of real estate IPOs is expected in the next 18 months, with many mid-sized and regional developers seeking listings to support expansion and reduce reliance on project-level funding. The sector has seen initial movement with filings, internal restructuring and fund-raising activity ahead of the projected market windows of late 2025 and 2026. DRA Homes is part of this emerging pipeline, and its recent initiatives demonstrate readiness for disclosures, promoter dilution norms and disclosures expected by institutional investors.

Following its IPO roadmap, the company has introduced a ₹125 crore Employee Stock Ownership Program (ESOP), giving 5% ownership to 325 employees. The three-year vesting structure is expected to create ten employees with crore-level assets and is one of the more inclusive equity distributions by a regional developer. The initiative places DRA Homes among a limited group of real estate companies using equity-linked employee participation as part of pre-IPO structuring.

Along with the ESOP, the company has increased employee-linked payouts. In the last quarter, it disbursed ₹2.25 crore in performance incentives, with the full-year payout estimated to reach ₹6 crore.

The company is currently valued at ₹2,500 crore and has a revenue target of ₹800 crore for FY25, up from ₹525 crore last year, when it reported a profit after tax of ₹50 crore. DRA Homes has an inventory of ₹2,700 crore in ongoing and planned developments, reflecting its active project portfolio in Chennai and surrounding markets. To strengthen its capital base ahead of its listing journey, the developer recently secured funding in partnership with Balajadia, adding fresh financial headroom as it scales and prepares to expand into new territories.

DRA Homes has completed 16 projects across South, North and West Chennai, with seven more in progress. The company is evaluating an entry in Pune, marking its first move beyond Tamil Nadu and signaling geographic expansion ahead of the IPO deadline.

With a 40-year legacy and a growing footprint, DRA Homes is positioning itself for a broad national presence, backed by financial discipline and an operating model geared towards scale. As more real estate companies prepare to enter the public markets in 2025 and 2026, the company aims to anchor its next phase of growth through strong governance, predictable delivery and consistent capital utilization.