Upcoming IPO: Pranav Constructions Filed DRHP With SEBI to Raise Funds Via IPO

The Mumbai-based, redevelopment projects player Pranav Constructions has submitted its draft red herring prospectus (DRHP) with the capital market regulator, the Securities and Exchange Board of India (SEBI) to float an initial public offering (IPO).

Pranav Constructions IPO Details

The Pranav Constructions IPO, priced at a face value of ₹10 per share, includes a fresh issuance of ₹392 crore, along with an offer for sale (OFS) of up to 28,56,869 equity shares, which will be sold by both the promoter and an investor selling shareholder.

Use of IPO Proceeds

Pranav Constructions intends to use the net proceeds from this upcoming IPO for various purposes, including covering expenses related to obtaining government and statutory approvals, purchasing additional FSI, compensating residents for alternate housing and hardship related to ongoing and upcoming redevelopment projects (“Funding Redevelopment Expenses”); repaying and/or prepaying certain company borrowings; and funding the acquisition of future redevelopment projects, along with meeting general corporate requirements.

As part of the OFS, BioUrja India Infra Private Limited will sell up to 23,07,472 equity shares, while Ravi Ramalingam will offload up to 5,49,397 equity shares.

About Pranav Constructions Limited

A prominent redevelopment firm in Mumbai, Pranav Constructions primarily focuses on redevelopment projects in the Western Suburbs, with a particular emphasis on affordable, mid-range, and aspirational housing.

The company is recognised as one of the leading real estate firms, noted for its substantial supply of units and the number of MCGM (Municipal Corporation of Greater Mumbai) redevelopment projects either completed or underway. Currently, Pranav Constructions is managing 27 MCGM redevelopment projects in the Western Suburbs, totalling 1,503 units. In comparison, other developers have between 2 to 7 MCGM redevelopment projects, all launched between CY 17 and CY 24.

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