Pranav Constructions Files IPO Draft Papers with SEBI, Eyes Rs 392 Crore Fresh Issuance

Mumbai-based Real Estate Developer Plans IPO with Fresh Issue and OFS; Proceeds to Boost Redevelopment Projects

Mumbai-based real estate firm, Pranav Constructions Ltd, has officially filed its draft documents with the Securities and Exchange Board of India (SEBI), aiming to raise substantial capital through an Initial Public Offering (IPO).

According to the Draft Red Herring Prospectus (DRHP) submitted to SEBI, the proposed IPO consists of a fresh issue of shares worth Rs 392 crore, accompanied by an Offer For Sale (OFS) involving 28.57 lakh equity shares. The OFS will see participation from the company’s promoter, Ravi Ramalingam, and investor shareholder, BioUrja India Infra.

Potential Pre-IPO Placement and IPO Utilisation Plan​

The company has also indicated a possibility of raising Rs 78.40 crore via a pre-IPO placement. Should this pre-IPO funding materialize, the size of the fresh issuance within the IPO will correspondingly decrease.

Proceeds from the fresh issue, as detailed in the DRHP, are strategically earmarked as follows:

• Rs 223.75 crore allocated for obtaining necessary government and statutory approvals, purchasing additional Floor Space Index (FSI), providing alternate accommodation to displaced residents, and compensating individuals facing hardship due to redevelopment activities.
• Rs 74 crore intended for repayment of existing debt obligations, acquisition of future redevelopment projects, and covering general corporate expenses.

Leading Player in Mumbai’s Redevelopment Market​

Pranav Constructions specializes in the redevelopment space within the jurisdiction of the Municipal Corporation of Greater Mumbai (MCGM), particularly focusing on Mumbai’s thriving western suburbs. The company primarily serves Economical, Mid, Mass, and Aspirational housing segments.

As of December 2024, Pranav Constructions' robust project portfolio includes:

• 26 completed projects, totaling approximately 1.25 million square feet of developable area.
• 11 ongoing projects, covering around 1.07 million square feet.
• 21 upcoming projects, anticipated to span 1.87 million square feet of developable space.

Financial Performance Highlights​

In the fiscal year 2024, Pranav Constructions reported strong financial performance:

• Consolidated revenue from operations stood at Rs 447.48 crore.
• Consolidated Profit After Tax (PAT) registered at Rs 39.62 crore.

For the first nine months ending December 31, 2024, the company's financial indicators were:

• Revenue from operations: Rs 430.59 crore.
• Consolidated PAT: Rs 43.04 crore.

IPO Management and Listing Plans​

Centrum Capital and PNB Investment Service are appointed as the book-running lead managers for the IPO. Post-approval, Pranav Constructions aims to list its equity shares on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).