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Mumbai-based real estate developer Pranav Constructions has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The IPO comprises a fresh issuance of INR 392 crore and an offer for sale of up to 28,56,869 equity shares by promoter and investor selling shareholders. The company may also consider a pre-IPO placement of INR 78.40 crore. Pranav Constructions is a major player in the MCGM redevelopment sector in Mumbai and has a strong track record of timely project execution, following a capital-light business model. The company reported a consolidated revenue of INR 447.48 crore for Fiscal 2024, with a profit of INR 39.62 crore.
Mumbai-based real estate developer Pranav Constructions has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO). The company's equity shares are proposed to be listed on both the BSE and NSE. Advertisement
The IPO, with a face value of INR 10 per share, includes a fresh issuance amounting to INR 392 crore alongside an offer for sale of up to 28,56,869 equity shares by the promoter and investor selling shareholders.
The offer for sale comprises up to 23,07,472 equity shares by BioUrja India Infra Private Limited and up to 5,49,397 equity shares by Ravi Ramalingam.
The company, in consultation with the book-running lead managers, may consider issuing specified securities amounting to INR 78.40 crore as a pre-IPO placement, which shall not exceed 20% of the fresh issue size. If such a placement occurs, the fresh issue size will be adjusted accordingly.
The offering is being conducted through the book-building process, wherein at least 75% of the offer is reserved for qualified institutional buyers, a maximum of 15% is allocated to non-institutional bidders, and at least 10% is set aside for retail individual investors.
The funds raised from the fresh issuance will be utilised as follows: INR 223.75 crore for expenses related to government and statutory approvals, purchase of additional FSI, and compensation for members, alternative accommodations, and hardship payments concerning ongoing redevelopment projects. Additionally, INR 74 crore will be allocated for repaying or prepaying certain outstanding borrowings. The remaining funds will support the acquisition of future redevelopment projects and general corporate purposes.
Centrum Capital Limited and PNB Investment Services Limited are serving as the book-running lead managers, while KFin Technologies Limited is acting as the registrar for the offering.
Pranav Constructions is a leading real estate developer, particularly in the MCGM redevelopment segment of Mumbai's Western Suburbs. As per a C&W Report cited in the DRHP, the company holds the top position in unit supply and the number of completed and ongoing MCGM redevelopment projects.
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