Mumbai-based real estate player, Pranav Constructions, has filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to mop up funds through an initial public offering (IPO).
The IPO, with a face value of Rs 10 each, combines fresh issuance of Rs 392 crore with an offer for sale of up to 28,56,869 equity shares by the promoter and investor selling shareholders.
The offer for sale consists of 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 an issue of specified securities, aggregating to Rs 78.40 crores as pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The offer is being made through the book-building process, wherein not less than 75% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 10% of the offer shall be available for allocation to retail individual bidders.
The proceeds from its fresh issuance to the extent of Rs 223.75 crore for funding costs towards obtaining government and statutory approvals and purchase of additional FSI and cost towards compensation to members, towards alternate accommodation, and hardship compensation, about the development of certain of its under-construction redevelopment projects; Rs 74 crore for repayment or pre-payment, in full or in part, of certain of its outstanding borrowings availed by the company; funding acquisition of future redevelopment projects and general corporate purposes.
Centrum Capital Limited and PNB Investment Services Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
Pranav Constructions is a leading real estate developer, particularly in the MCGM redevelopment segment in Mumbai’s Western Suburbs. According to a C&W Report mentioned in the Draft Red Herring Prospectus (DRHP), it holds the top position regarding unit supply and the number of completed and under-construction MCGM redevelopment projects.
With a total of 1,503 units across 27 such projects (both completed and ongoing), Pranav Constructions significantly outpaces other developers in the region, who have undertaken only 2 to 7 similar projects each between CY 2017 and CY 2024. The company specializes in redevelopment projects catering to Economical, Mid and Mass, and Aspirational housing segments.
The company ranks first in the MCGM region for the highest combined supply in redevelopment projects launched between CY 2021 and CY 2024 and is placed fourth for supply volume in projects launched between CY 2017 and CY 2024.
With a strong track record of timely project execution, Pranav Constructions has earned a reputation as a trusted and reliable brand in the region. Its focus on efficiency is reflected in its capital-light business model, wherein it enters into redevelopment agreements with cooperative housing societies to facilitate project execution with optimized capital deployment.
The company follows an integrated redevelopment model, managing the entire lifecycle of redevelopment projects—from initiation to completion—through in-house capabilities. Its expertise spans all phases of the redevelopment process, including tendering, pre-construction planning, construction, and post-construction activities.
Pranav Constructions began its journey in redevelopment in 2012 under the leadership of its promoters, Pranav Kiran Ashar, who has 21 years of real estate experience, and Ravi Ramalingam, who has 16 years of expertise in finance and accountancy. Their strategic leadership has played a pivotal role in driving the company’s growth and strengthening its position in the Mumbai redevelopment sector.
The consolidated revenue of the company from operations stood at Rs 447.48 crore in Fiscal 2024, primarily due to an increase in sales of units on account of Redevelopment Projects launched in Fiscal 2024 and the last quarter of Fiscal 2023; Consolidated Profit after tax stood at Rs 39.62 crore in Fiscal 2024.
For the nine-month period ended December 31, 2024, consolidated revenue from operations and consolidated profit after tax stood at Rs 430.59 crore and Rs 43.04 crore respectively.
