One of the leading real estate companies, Pranav Construction, has recently submitted its Draft Red Herring Prospectus (DRHP) to market regulator SEBI with the goal of launching its IPO, Initial Public Offering, soon.
According to the draft papers, we got to know that this IPO comprises a combination of both fresh issue of up to ₹392 crore equity shares and an offer-for-sale (OFS) of up to 2.85 million equity shares by its promoters and investors with a face value of ₹10 per share.
The promoters of the company are Ravi Ramalingam, who will be selling shares of ₹392 crore, and the investor, BioUrja India Infra, will be selling shares of ₹2.85 million equity shares.
Pranav Construction is one of the top redevelopment companies, also planning to raise funds of ₹784 million in a pre-IPO placement. According to the DRHP, the company said that if they follow the plan and successfully raise funds through the pre-IPO round, which means before going public, the company might sell some shares to selected investors like B-HNI and S-HNI individuals.
The funds raised through the IPO will be utilized in various ways, such as using the funds for the future redevelopment projects, handling the cost of getting government and legal approvals, for the purchase of additional construction rights, and repaying the old residents due to causing disturbance during the process of redevelopment of projects, and lastly repayment and pre-payment of the old borrowings taken by the company.
Pranav Constructions is one of the growing real estate companies involved in the business of supply of units and number of completed and under construction MCGM – Redevelopment projects in the Western Suburbs. So far the company has completed or is under construction of a total of 1,503 units and 27 MCGM Redevelopment projects. They have ranked number 1 among others in the MCGM Region to be the highest combined supply in MCGM Redevelopment projects.
As of December 31, 2024, Pranav construction generated revenue of ₹4,305.89 from operations with a generating return on equity of 35.18% respectively. The shares of the company will be listed on both the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE).
The book running lead managers of the company are Centrum Capital and PNB Investment Services, while the registrar of the company is KFin Technologies.
Pranav Constructions IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Pranav Constructions Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2024 | ₹449.75 | ₹410.65 | ₹39.62 |
| December 2024 | ₹432.06 | ₹389.56 | ₹43.05 |
Pranav Constructions IPO Valuation – FY2024
Pranav Constructions IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹4.66 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 64.93% |
| Net Asset Value (NAV): | ₹10.30 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Keystone Realtors Limited | 9.85 | 52.12 | 6.38% | 157.54 | 2,222.25 Cr. |
| Godrej Properties Limited | 26.09 | 76.16 | 7.63% | 370.53 | 3,035.62 Cr. |
| Macrotech Developers Limited | 16.03 | 74.79 | 10.27% | 176.32 | 10,316.10 Cr. |
| Suraj Estate Developers Ltd | 19.39 | 17.27 | 22.97% | 116.37 | 412.21 Cr. |
| Kolte-Patil Developers Limited | (9.12) | (28.39) | (8.37)% | 96.78 | 1,371.48 Cr. |
| Arkade Developers Limited | 8.09 | 18.07 | 2.11% | 21.29 | 634.74 Cr. |
Objects of the Issue
- 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, in relation to the development of certain of our Under-construction Redevelopment Projects, and certain of our Upcoming Redevelopment Projects (“Funding Redevelopment Expenses”);
- Repayment and/ or pre-payment, in full or part, of certain borrowings availed by our Company; and
- Funding acquisition of future redevelopment projects and general corporate purposes.
IPO Lead Managers aka Merchant Bankers
- Centrum Capital Limited
- PNB Investment Services Limited
