IPO Watch: Pranav Constructions files draft papers with SEBI for IPO

IPO Watch: Pranav Constructions 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).

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.

The company ranks as one of the leading real estate firms, distinguished by its supply of units and the number of MCGM (Municipal Corporation of Greater Mumbai) 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 to 7 MCGM redevelopment projects, all launched between CY 17 and CY 24, according to the C&W Report.

As per the DRHP, the company's listed peers are Keystone Realtors (with a P/E of 52.12), Godrej Properties (with a P/E of 76.16), Macrotech Developers (with a P/E of 74.79), Suraj Estate Developers (with a P/E of 17.27), Kolte-Patil Developers (with a P/E of 28.39), and Arkade Developers (with a P/E of 18.07).

Pranav Constructions IPO details

Pranav Constructions IPO, having a face value of ₹10 per share, includes a fresh issuance amounting to ₹392 crore along with an offer for sale (OFS) 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.

Under the OFS, BioUrja India Infra Private Limited will offload up to 23,07,472 equity shares while Ravi Ramalingam will sell as many as 5,49,397 equity shares.

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