Mumbai-based Pranav Constructions files DRHP for Rs 392 crore IPO

OFS includes 28,56,869 equity shares by the promoter and investors

Mumbai-based real estate company Pranav Constructions filed a draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (Sebi) for raising ₹392 crore through an initial public offering (IPO).

 

The company plans to offload equity via sale of over 2.8 million shares held by promoters and investors. 

 

The IPO will include issuance of fresh shares and sale of 23,07,472 equity shares by BioUrja India Infra and up to 5,49,397 equity share sale by whole-time director Ravi Ramalingam.

 

The company said it could consider a pre-IPO placement of 20 per cent of the fresh issue size, coming to ₹78.4 crore.  

 

From the total proceeds, ₹223.75 crore will be used for funding costs towards its ongoing and upcoming redevelopment projects, including purchase of additional floor space index (FSI) and costs towards compensation to members for alternative accommodation and hardship compensation.

 

About ₹74 crore would go towards repayment of outstanding borrowings and the rest would be for funding the acquisition of future redevelopment projects, besides general corporate purposes.

 

Pranav Constructions is involved in 27 ongoing and completed redevelopment projects across the Mumbai Metropolitan Region (MMR). The company’s projects cater to economical, mid and mass, and aspirational housing segments.

 

The company’s consolidated revenue from operations stood at ₹447.48 crore in FY24, while the consolidated profit after tax stood at ₹39.62 crore. 

 

For the nine-month period ended December 31, 2024, the company’s consolidated revenue from operations and consolidated profit after tax (PAT) stood at ₹430.59 crore and ₹43.04 crore, respectively. Its total debt was ₹155.4 crore.