Mumbai-Based Pranav Constructions Files DRHP For IPO

Pranav Constructions, a Mumbai-based real estate company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to initiate an Initial Public Offering (IPO). 

IPO Structure and Details

The proposed IPO consists of a fresh issue of equity shares totalling ₹392 crore and an Offer For Sale (OFS) of up to 28,56,869 equity shares by existing shareholders. 

Utilisation of Funds

The company will not receive any proceeds from the Offer for Sale component; these will be directly given to the Selling Shareholders. 

The Net Proceeds from the fresh issue will be used towards the following purposes:

• Investing in future redevelopment projects. 
• Covering costs for getting government and legal approvals, 
• Buying additional construction rights (FSI), 
• Compensating existing residents for any inconvenience caused during the redevelopment of ongoing and upcoming projects.
• Repayment or pre-payment of certain loans availed by the company.

Financial Performance

In the fiscal year 2024, Pranav Constructions reported consolidated revenue from operations of ₹447.48 crore and a Profit After Tax (PAT) of ₹39.62 crore. For the nine-month period ending December 31, 2024, this number was ₹430.59 crore and a PAT of ₹43.04 crore. 

This shows that the company nearly matched its full-year revenue and even surpassed its annual profit within just nine months. 

Company Profile

Pranav Constructions is one of Mumbai's leading real estate companies, known for its strong presence in the redevelopment space, especially in the Western Suburbs. They hold #1 position in the MCGM region for the highest combined supply of redevelopment projects launched between CY 2021 and CY 2024 and rank 4th for overall supply between CY 2017 and CY 2024.

As of December 31, 2024, their project portfolio includes, 

• 26 Completed Redevelopment Projects
• 11 Under-Construction Redevelopment Projects
• 21 Upcoming Redevelopment Projects

The book-running lead managers for the IPO are Centrum Capital Limited and PNB Investment Services Limited. 

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here