Upcoming IPO: Pranav Constructions files DRHP with Sebi; details here

Real estate player Pranav Constructions is aiming to go public as it has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, Securities and Exchange Board of India (Sebi), for its initial public offering (IPO).

 

The public offering, as outlined in the DRHP, comprises a fresh issue of equity shares of up to Rs 392 crore, with an offer-for-sale (OFS) of up to 2.85 million equity shares by the promoter and investor selling shareholders. The OFS consists of promoter Ravi Ramalingam selling up to 549,397 equity shares, and investor BioUrja India Infra divesting up to 2,307,472 equity shares.

 

 

“Our Company, in consultation with the BRLMs, may consider a Pre-IPO Placement for an amount aggregating up to Rs 784 million, at its discretion, prior to the filing of the Red Herring Prospectus (RHP),” said Pranav Constructions.

 

The equity shares, as proposed in the DRHP, are to be listed on the National Stock Exchange of India (NSE) and BSE.

 

Pranav Constructions IPO Objective

The company will not receive any proceeds from the Offer for Sale, and the proceeds received from the Offer for Sale will not form part of the Net Proceeds. "The Selling Shareholders will be entitled to the proceeds from the Offer for Sale after deducting their respective proportion of the Offer-related expenses and the relevant taxes thereon, in accordance with the Offer Agreement," said Pranav Constructions in its DRHP.

 

Pranav Constructions, however, intends to utilise the proceeds from the fresh issue for funding costs towards obtaining government and statutory approvals, the purchase of additional FSI, and costs towards compensation to members for alternate accommodation and hardship compensation, in relation to the development of certain of its under-construction redevelopment projects, and certain of its upcoming redevelopment projects. The company will also use the proceeds for repayment and/or pre-payment, in full or part, of certain borrowings availed, as well as for funding the acquisition of future redevelopment projects and general corporate purposes.

 

Pranav Constructions financial details

Pranav Constructions’s net profit attributable to the owners of the parent rose 94.79 per cent to Rs 39.62 crore in FY24 from Rs 20.34 crore reported in FY23, according to the DRHP. The company's revenue from operations increased by 26 per cent to Rs 447.5 crore in FY24 from Rs 355.3 crore in FY23.

 

Pranav Constructions’s total expenses also increased by 26 per cent to Rs 410.65 crore in FY24 from Rs 325.36 crore reported in FY23.

 

Pranav Constructions IPO registrar, lead managers

KFin Technologies is the registrar of the issue, while Centrum Capital, and PNB Investment Services are the book-running lead managers.

 

About Pranav Constructions

Pranav Constructions is a real estate company focused on the supply of units and the number of completed and under-construction MCGM Redevelopment projects in the Western Suburbs. The company has a total of 1,503 units and 27 MCGM Redevelopment projects (both completed and under construction), whereas other developers have between 2 to 7 MCGM Redevelopment projects each, launched between CY 17 – CY 24 (Source: C&W Report). The company has adopted an integrated Redevelopment model, with the capabilities and in-house resources to execute Redevelopment Projects from initiation to completion.