Real estate developer Pranav Constructions files IPO papers with fresh issue of Rs 392 crore

Pranav Constructions IPO

Mumbai-based real estate developer Pranav Constructions has filed draft papers with the SEBI to raise funds via initial public offering for redevelopment projects and repaying debt.

The IPO will comprise of fresh issuance of equity shares worth Rs 392 crore, and an offer-for-sale of 28.56 lakh shares by existing shareholders.

Investor BioUrja India Infra will be selling 23.07 lakh shares, and promoter Ravi Ramalingam 5.49 lakh shares via offer-for-sale.

Promoters' shareholder in the company stands at 63.35 percent, and the remainder shares are held by public shareholders including RiverCrest India Infrastructure (27.14%) and BioUrja India Infra (4.35%).

Further, Pranav Constructions may consider fund raising up to Rs 78 crore in pre-IPO round. The said amount, if raised in pre-IPO placement, will be reduced from the fresh issue.

The redevelopment company intends to utilise fresh issue proceeds for funding redevelopment expenses, repayment of debt, and acquisition of future redevelopment projects and general corporate purposes.

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As of 2024, its portfolio included 58 redevelopment projects across the MCGM region, comprising 26 completed redevelopment projects, 11 under-construction redevelopment projects with combined total developable area of 1.07 million square feet, and 21 upcoming redevelopment projects with combined total developable area of 1.87 million square feet.

On the financial front, Pranav Constructions recorded a 94.7% growth in net profit at Rs 39.6 crore and 26% increase in revenue at Rs 447.5 crore for the fiscal 2024, compared to previous fiscal. Profit in nine-month period ended December 2024 stood at Rs 43 crore on revenue of Rs 430.6 crore.

Centrum Capital, and PNB Investment Services are appointed as the book running lead managers to the issue.