The IPO, with a face value of Rs10 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 Shareholder.
FinTech BizNews Service
Mumbai, March 3, 2025: Mumbai-based Real Estate Player, Pranav Constructions Limited, the leading real estate company, based on the supply of units and several completed and under construction MCGM - Redevelopment projects in the Western Suburbs, 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 Rs10 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 Shareholder. 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, and certain of its
Upcoming 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.
Pranav Constructions Limited 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.
Pranav Constructions 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. As of December 31, 2024, its portfolio
comprises 58 redevelopment projects, including 26 completed projects spanning a total developable
area of 1.25 million square feet, 11 under-construction projects covering 1.07 million square feet, and
21 upcoming projects with a projected developable area of 1.87 million square feet. The company’s
expertise lies in pure-play redevelopment, with operations predominantly concentrated in Mumbai’s
Western Suburbs.
With a strong track record of timely project execution, Pranav Constructions has earned a reputation
as a trusted and reliable brand in the region.
