IPO Details
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Schedule of Pranav Constructions Ltd
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Allotment of bids
Refund Initiation
Listing on exchange
About Pranav Constructions Ltd IPO
A 100% book-built offer, the IPO of Pranav Constructions Ltd comprises a fresh issue and an offer for sale. The fresh issue aggregates up to ₹392 crores, while the offer for sale is up to 2,856,869 equity shares of face value of ₹10 each.
Objectives of Pranav Constructions Ltd IPO
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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 its under-construction redevelopment projects, and certain of our upcoming redevelopment projects
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Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company
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Funding acquisition of future redevelopment projects and general corporate purposes
Pranav Constructions Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Aggregates up to ₹392 crores |
Offer for Sale | Up to 2,856,869 equity shares |
EPS in ₹ for FY 24 | 4.66 |
Pranav Constructions Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the offer |
Non-institutional Bidders | Not more than 15% of the offer |
Retail Individual Bidders | Not more than 10% of the offer |
Industry Outlook
As per industry estimates, the housing sector is expected to account for ~13% share in India’s GDP by 2025 and the cumulative real estate sector is expected to grow to USD 1 Tn by 2030. The real estate & construction sector is considered as the largest employer after agriculture in India.
Owing to limited availability of land for greenfield development in Mumbai, redevelopment opportunities for developers especially in western and eastern submarkets have witnessed a significant increase. The Economic Masterplan for MMR aims to achieve a GDP of USD 300 Bn (₹ 25,00,000 crores.), grow at 9 - 10% CAGR, and provide employment to an additional 2.8 - 3 Mn people by FY30.
Company Information
Pranav Constructions Ltd is a leading real estate company, based on the supply of units and number of completed and under construction MCGM - Redevelopment projects in the western suburbs, with a total of 1,503 units and 27 MCGM - Redevelopment projects (completed and under construction) each launched between CY 17 –CY 24.
The company ranked 1st in the MCGM Region for having the highest combined supply in MCGM Redevelopment projects launched between CY 21 and CY 24. It ranked 4th in the MCGM region for having the highest supply in MCGM Redevelopment projects launched between CY 17 and CY 24.
Pranav Constructions Ltd Strengths
Leading real estate company in the western suburbs
Pranav Constructions Ltd is the leading real estate company, based on the supply of units and number of completed and under construction MCGM - Redevelopment projects in the Western Suburbs, with a total of 1,503 units and 27 MCGM - Redevelopment projects (completed and under construction) between CY 17 and CY 24. In the MCGM Region, the company contributed to 15% of the redeveloped units supplied by the top 5 developers during CY 17 and CY 24.
Demonstrated project execution capabilities with in-house functional expertise
The company has adopted an integrated redevelopment model, with capabilities and in-house resources to supervise and execute its redevelopment projects from initiation to completion. Its business model integrates its in-house capabilities seamlessly throughout the project construction cycle.
With a focus on business development, architecture and design, legal and regulatory compliance, construction management, and sales and marketing, it has consistently demonstrated its ability to deliver its Redevelopment Projects in a timely manner.
Capital efficient business model with high barriers to entry
As a core aspect of its business, it enters into redevelopment agreements with Co-operative Housing Societies, which enables it to focus on capital efficiency. This helps it in reducing the initial financial outlay compared to acquisition of land.
Further, this approach also helps it in reducing lead time which is spent on title clearance, which typically takes longer in land acquisitions. This streamlines the process and gives it benefits of a short project construction cycle.
Risks of Pranav Constructions Ltd IPO
- Geographical concentration: The company’s redevelopment activities are geographically concentrated in the MCGM Region, and more specifically, the Western Suburbs which has accounted for 99.66%, 99.50%, 99.74% and 99.89% of its revenue from operations for nine-month period ended December 31, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively.
Consequently, it’s exposed to risks from varying market conditions, economic, regulatory and other changes as well as natural disasters in the MCGM Region, which in turn may have an adverse effect on its business, results of operations, cash flows and financial condition.
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Risks of delays and non-completion: An inability to complete its under-construction redevelopment projects and upcoming redevelopment projects by their respective expected completion dates or at all could have a material adverse effect on the company’s business, reputation, results of operations and financial condition.
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Supply chain disruption in construction materials: The company depends on a limited number of suppliers for construction materials for its redevelopment projects. Any interruption in the availability of construction materials could adversely impact its business, results of operations and financial condition.
All Financial Information about Pranav Constructions
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth in % | NAV per share in ₹ |
|---|---|---|---|---|
Pranav Constructions Ltd | 447.483 | 4.66 | 64.93 | 10.30 |
Keystone Realtors Ltd | 2222.250 | 9.85 | 6.38 | 157.54 |
Godrej Properties Ltd | 3035.620 | 26.09 | 7.63 | 370.53 |
Macrotech Developers Ltd | 10316.100 | 16.03 | 10.27 | 176.32 |
Suraj Estate Developers Ltd | 412.214 | 19.39 | 22.97 | 116.37 |
Kolte-Patil Developers Ltd | 1371.480 | (9.12) | (8.37) | 96.78 |
Arkade Developers Ltd | 634.737 | 8.09 | 2.11 | 21.29 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- Registrar: KFin Technologies Ltd
- Book Running Lead Managers: Centrum Capital Ltd and PNB Investment Services Ltd
Business Model
Pranav Constructions Ltd is a real estate company engaged in redevelopment projects in the western suburbs focusing on economical, mid and mass, and aspirational homes. As of December 31, 2024, the company’s portfolio included 58 redevelopment projects across the MCGM region comprising:
- 26 completed redevelopment projects
- 11 under construction redevelopment projects
- 21 upcoming redevelopment projects
Company Growth Trajectory
Pranav Constructions Ltd has demonstrated a consistent track record of financial performance and growth in recent years. It has recorded a growth in profit after tax of 463.16% year-on-year from Fiscal 2022 to 2023 and a growth of 94.71% year-on-year from Fiscal 2023 to 2024. It has registered a growth in its revenue from operations of 62.37% year-on-year from Fiscal 2022 to 2023 and a growth of 25.96% year-on-year from Fiscal 2023 to 2024.
Market Position
Between CY 21 and CY 24, Pranav Constructions Ltd ranked 1st in the MCGM Region for having the highest combined supply in MCGM Redevelopment projects launched. The company ranked 4th in the MCGM region for having the highest supply in MCGM Redevelopment projects launched between CY 17 and CY 24.
Pranav Constructions Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 449.754 | 356.177 | 219.029 |
Profit Before Tax (in ₹ crores) | 39.104 | 30.813 | 11.262 |
Profit After Tax(in ₹ crores) | 39.617 | 20.347 | 3.613 |
EPS in ₹ | 4.66 | 2.53 | 0.07 |
Pranav Constructions Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 39.104 | 30.813 | 11.262 |
Net Cash Flows Generated From / (Used in) from Operating Activities | 5.462 | 38.271 | (26.402) |
Net Cash Generated From / (Used in) Investing Activities (in ₹ crores) | 19.784 | (29.204) | (0.360) |
Net Cash Flows Generated From / (Used in) Financing Activities (in ₹ crores) | 0.572 | (8.128) | 35.310 |
Cash and Cash Equivalents at the End of the Period (in ₹ crores) | 38.865 | 13.047 | 12.108 |
How to check the allotment status of Pranav Constructions Ltd IPO?
1. Visit the Registrar’s Website
Visit the official website of KFin Technologies Ltd and click on any one of the links under ‘IPO Allotment Status’. Select the IPO. Put in your application number, Demat or PAN. Enter captcha and click on ‘Submit’.
2. Check on Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Pranav Constructions Ltd' in the next dropdown
- Enter your application number
- Enter your PAN
- Click ‘Search’ to know allotment status
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Pranav Constructions Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for LCC Projects Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Pranav Constructions Ltd IPO FAQs
What is the Pranav Constructions Ltd IPO?
The IPO of Pranav Constructions Ltd comprises a fresh issue and an offer for sale. While the fresh issue aggregates up to ₹392 crores, the offer for sale is up to 2,856,869 equity shares.
What are the bidding dates of Pranav Constructions Ltd IPO?
The exact dates of the Pranav Constructions Ltd are yet to be announced.
Who is the chairman and MD of Pranav Constructions Ltd?
Pranav Kiran Ashar is the chairman and MD of Pranav Constructions Ltd.
From where can I read more about Pranav Constructions Ltd IPO?
You can read more about the IPO of Pranav Constructions Ltd from the company’s draft red herring prospectus here.
