Pranav Constructions Ltd., a real estate developer in Mumbai's western suburbs, has filed its draft red herring prospectus with the Securities and Exchange Board of India to raise funds through an initial public offering.
The IPO includes a fresh issue of shares worth Rs 392 crore and an offer for sale of up to 28,56,869 equity shares by the company's promoters and investors. The offer for sale comprises up to 23,07,472 equity shares by BioUrja India Infra Pvt. and up to 5,49,397 equity shares by Ravi Ramalingam.
Pranav Constructions may also consider a pre-IPO placement of securities worth Rs 78.40 crore, which would reduce the size of the fresh issue if completed. The IPO will be conducted through a book-building process, with 75% of the offer allocated to qualified institutional buyers, 15% to non-institutional bidders, and 10% to retail individual bidders.
Proceeds from the fresh issue will be used for various purposes, including funding government and statutory approvals, purchasing additional floor space index, compensating members for alternate accommodation and hardship, and developing under-construction and upcoming redevelopment projects.
Additionally, Rs 74 crore will be allocated for repaying or pre-paying certain outstanding borrowings, and the remaining funds will be used for acquiring future redevelopment projects and general corporate purposes.
As of Dec. 31, 2024, Pranav Constructions has a portfolio of 58 redevelopment projects, including 26 completed projects, 11 under-construction projects, and 21 upcoming projects.
Eleven of the company's under-construction redevelopment projects had a combined total developable area of 1.07 million square feet as of Dec. 31, 2024. While, 21 upcoming redevelopment projects had a combined total developable area of 1.87 million square feet, in the same period.
The average time period required by the company for its completed redevelopment projects, that is, the date of the first commencement certificate to the date of the grant of occupation certificate, was 26 months, the company said in its DRHP.
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