IPO Watch: Pranav Constructions Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).
The company ranks as one of the leading real estate firms, distinguished by its supply of units and the number of MCGM redevelopment projects that are either completed or currently in development. It has 27 MCGM redevelopment projects in the Western Suburbs, totaling 1,503 units, while other developers have between 2 and 7 MCGM redevelopment projects, all launched between CY 17 and CY 24, according to the C&W Report.
Pranav Constructions is among the top redevelopment firms in Mumbai, primarily focusing on redevelopment initiatives in the Western Suburbs, with an emphasis on Economical, Mid and Mass, and Aspirational homes.
As per the DRHP, the company’s listed peers are Keystone Realtors Ltd (with a P/E of 52.12), Godrej Properties Ltd (with a P/E off 76.16), Macrotech Developers Ltd (with a P/E of 74.79), Suraj Estate Developers Ltd (with a P/E of 17.27), Kolte-Patil Developers Ltd (with a P/E of (28.39)), and Arkade Developers Ltd (with a P/E of 18.07).
IPO details
The initial public offering (IPO), which has a face value of ₹10 per share, includes a fresh issuance amounting to ₹392 crore along with an offer for sale of up to 28,56,869 equity shares by both the promoter and an investor selling shareholder.
The company intends to use the net proceeds for several purposes, including covering costs related to securing government and statutory approvals, purchasing additional FSI, and compensating members for alternate housing and hardship in connection with the development of certain ongoing redevelopment projects and some upcoming redevelopment initiatives (“Funding Redevelopment Expenses”); repaying and/or prepaying, either fully or partially, specific borrowings obtained by the company; and financing the acquisition of future redevelopment projects along with general corporate needs.
The offer for sale features up to 23,07,472 equity shares from BioUrja India Infra Private Limited and as many as 5,49,397 equity shares from Ravi Ramalingam.
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