Pranav Constructions Ltd IPO
Status: Closed
Overview
IPO date
07 Sept 2026 to 09 Sept 2026
Face value
₹ 10 per share
Price
₹ 118 to ₹124 per share
Issue Size
28,308,481 shares
(aggregating up to ₹ 351.03 Cr)
(aggregating up to ₹ 351.03 Cr)
Allotment Date
10 Sept 2026
Listing at
NSE
Issue type
Book Building
Sector
Construction
Unlock Stock of the Month
T&C*
Strengths vs Risks of Pranav Constructions Ltd
Know the pros & cons
Strengths
- Among the leading real estate companies in the Western Suburbs with a demonstrated growth and strong pipeline.
- Demonstrated project execution capabilities with in-house functional expertise.
- Capital efficient business model with high barriers to entry.
- Established a customer-centric brand in the Western Suburbs with robust stakeholder management.
- Track record of consistent financial performance.
- Experienced Promoters and professional senior management with good corporate governance practices.
Risks
- The company's Redevelopment1 activities are geographically concentrated in the MCGM Region2, which has accounted for 99.70%, 99.69% and 99.50% of its revenue from operations for the Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Consequently, the company is 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.
- An inability to complete the company Under-construction Redevelopment Projects and Upcoming Redevelopment Projects by their respective expected completion dates or at all could have a material adverse effect on its business, reputation, results of operations and financial condition.
- If the company is not able to sell its Redevelopment Projects inventory in a timely manner, it may adversely affect the company's business, results of operations and financial condition.
- The company does not enters into agreements for supply of construction materials for its Redevelopment Projects and depends on a limited number of suppliers for construction materials. As of Fiscal 2026, Fiscal 2025 and Fiscal 2024, the company's top 10 suppliers contributed to 61.78%, 69.80% and 52.50% of the total material costs, respectively. Any increase in prices or interruption in the availability of construction materials could adversely impact its business, results of operations and financial condition.
- The company depends on a limited number of contractors for its business activities and operations. As of Fiscal 2026, Fiscal 2025 and Fiscal 2024, the company's top 10 contractors contributed to 47.10%, 56.41% and 46.92% of the total amount paid to contractors, respectively. Any delay or failures on the part of such contractors to adhere to their obligations could adversely affect its business operations and financial condition.
- The company may not be able to successfully identify and acquire Redevelopment Projects in the future, which may have an adverse impact on its business and the growth of the Company.
- The company has entered into Redevelopment agreements with Co-operative Housing Societies to acquire Redevelopment rights which may entail risks pertaining to irregularities in the title or use of land for which the company has acquired Redevelopment rights which could have an adverse impact on its business operations and financial performance.
- The company's business requires significant expenditure for Redevelopment Projects and is dependent on the availability of financing, which may not be available on terms acceptable to it in a timely manner or at all. The company's inability to obtain funding on reasonable terms, or at all, could affect its ability to construct the company's Redevelopment Projects and would have an adverse effect on its business and results of operations.
- The company is subject to penalty clauses under the Redevelopment agreements entered into with Co-operative Housing Societies for any delay in the completion or defects in construction of the Redevelopment Projects. If such penalties are levied, it may have an adverse effect on its business, financial condition and results of operations.
- Any negative operating cash flows in the future would adversely affect the company's cash flow requirements, which may adversely affect its ability to operates the company's business and implement its growth plans, thereby affecting the company's financial condition.
- The company is exposed to delays and uncertainties in project completion due to administrative or regulatory delays and legal disputes, which may adversely impact it operationally and financially.
- The company operations and the work force, customers and/ or third parties on property sites are exposed to various hazards, which could adversely affect its business, financial condition and results of operations.
- The company's Redevelopment Projects may requires TDRs18 to develop area beyond the permissible FSI19 which may not be available or may not be available at the expected price. Its inability to acquire TDRs may affect the company's ability to increase the size and scope of its Redevelopment Projects which may lead to lower revenues and impact the company's financial condition and results of operations.
- There are certain discrepancies in records available with the company as well as its filings with the RoC. The company cannot assure you that regulatory proceedings or actions will not be initiated against it and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard in the future which may impact its financial condition and reputation.
- The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of the company Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.
- There are certain outstanding litigation proceedings involving the Company and Directors, an adverse outcome which, may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.
- The company has incurred certain indebtedness and its lenders have imposed certain restrictive covenants on the company under its financing arrangements. The company failures to comply with such covenants may adversely affect its reputation, business and financial condition.
- The Company has availed unsecured loans aggregating to Rs.236.04 million and personal guarantees aggregating to Rs.2,272.50 million from its Promoters and certain entities which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect the company's cash flows, business operations and financial condition.
- There could be infringement of the company's intellectual property rights by third parties, which could damage its reputation and brand identity and harm the company's business and results of operations.
- Failures to successfully implement the company's business strategies and its Redevelopment Projects may materially and adversely affect the company's business prospects, financial conditions and results of operations.
- The company's inability to effectively manage its growth or to successfully implement the company's business plan and growth and expansion strategy could have an adverse effect on its business, results of operations and financial condition.
- Inability of the company's prospective customers to obtain financing or changes in interest rates and taxation laws for purchase of property may impact the sale of units in its Redevelopment Projects which may adversely affect the company's business, future growth and results of operations.
- An inability to maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- Any changes in the incidence and change in the rate of property taxes and stamp duties may impact the company's business operations, growth plan, financial condition and results of operation.
- The company is required to obtain certain approvals or permits, and fulfil certain conditions precedent in respect of some of the approvals or permits. Any failures to obtain the necessary approvals in time or at all may results in material delays which could impact its growth strategy and results of operation.
- Compliance with, and changes to, safety, health and environmental laws and various labour, workplace and related laws and regulations impose additional costs and may increase the company's compliance costs and may adversely affect its results of operations and the company's financial condition.
- The company's offices, including its Registered and Corporate Office are held by the company on leave and license basis. If these leave and license agreements are terminated or not renewed on terms acceptable to the company, it could adversely affect its business, financial condition, results of operations, and cash flows.
- The company faces competition from various real estate developers. Its inability to compete successfully with the company's competitors, may adversely affect its business prospects and financial condition.
- A significant portion of the company's working capital needs are funded by Pre-Sales. Any cancellation of sales or change in the laws or regulations governing the use of Pre-Sales may affect its working capital and financial position.
- Its may utilize a portion of the Net Proceeds towards acquisition of future redevelopment projects and the company has identified such redevelopment projects as on the date of this Red Herring Prospectus.
- The proceeds from the Offer for Sale component of the Offer shall be received directly by the Selling Shareholder.
- The company's success depends in large part upon its qualified personnel, including the company's Directors, Key Managerial Personnel and management team, and the loss of or its inability to attract or retain such persons could adversely affect the company's business, results of operations and financial condition.
- There have been certain instances of delays in payment of statutory dues by the Company in the past. Any delay in payment of statutory dues by the Company in future, may result in the imposition of penalties and in turn may have an adverse effect on the Company's business, financial condition, results of operation and cash flows.
- The company has dues which are outstanding to its creditors. Any failures in payment of these dues may have a material adverse effect on the company's reputation, business and financial condition.
- One of the members of the company's Promoter Group has an estranged relationship with one of its Promoters, therefore the company will not be able to obtain any details regarding this member of Promoter Group which are required to be disclosed in relation to Promoter Group under the SEBI ICDR Regulations in this Red Herring Prospectus and the Prospectus. The disclosures relating to this member of the Promoter Group has been included in this Red Herring Prospectus based on information available in public domain. Accordingly, its cannot assure you that the disclosures relating to such members of the company's Promoter Group are accurate, complete, or updated. Further, details in relation to Connected Persons which may qualify as a member of its Promoter Group have not been disclosed in this Red Herring Prospectus.
- Investors should not relies on the Company undertaking bonus issuances in the future, including at large or frequent ratios, as done in the past. Further, its ability to issue bonus shares in the future will depends on the company's earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- Work stoppages, shortage of labour and other labour problems could adversely affect the company's business. Further, its operations are dependent on contract labour and an inability to access adequate contract labour at reasonable costs at the company's project sites may adversely affect its business prospects and results of operations.
- Changes in technology and breaches of information technology systems may affect the company's business by making its construction and development capabilities less competitive or obsolete. If the company is unable to adapt in a timely manner, its business and results of operations could be adversely affected.
- Certain information contained in this Red Herring Prospectus including that in relation to the company Completed Redevelopment Projects, Under-construction Redevelopment Projects, Upcoming Redevelopment Projects and the area expressed to be covered by its Redevelopment Projects are based on management estimates and may be subject to uncertainty.
- The company has certain contingent liabilities, which if they materialize, may adversely affect its business, financial condition and results of operations.
- It is difficult to compare the company's performance between periods, as its revenues and expenses may vary significantly between fiscal periods.
- The sector in which the Company operates, i.e., the real estate sector faces several structural and macroeconomic challenges, including regulatory delays, RERA compliance, high capital requirements, rising property prices, and economic volatility, all of which could adversely impact its business, operations, and financial results.
- The ongoing geopolitical conflict involving the United States, Israel and Iran may adversely affect, the company's business, results of operations and financial condition.
- Its may provide guarantees to lenders on behalf of third parties, and any failures to repay such loans by third parties, may affect the company's business, results of operations and financial condition.
- Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by C&W exclusively commissioned and paid for by it for such purpose and any reliance on such information is subject to inherent risks.
- The average cost of acquisition of Equity Shares by the company's Promoters and the Selling Shareholder may be less than the Offer Price. Further, its Promoters and the Selling Shareholder has subscribed to, and purchased, Equity Shares, at a price which could be below the Offer Price.
- The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- Its may requires additional equity or debt in the future in order to continue to grow the company's business, which may not be available on favorable terms or at all which may impact its financial condition, cash flows and results of operations.
- Under Indian law, foreign investors are subject to investment restrictions that limit the company's ability to attract foreign investors, which may adversely affect the trading price of the Equity Shares. Further, restrictions on foreign direct investments ("FDI") and external commercial borrowings in the real estate sector may hamper its ability to raise additional capital. Further, foreign investors are subject to certain restrictions on transfer of shares.
- Fraud or improper conduct may delay the development of a project and adversely affect the company's business and results of operations.
- Its Promoters hold Equity Shares in the Company and are therefore interested in its performance in addition to their normal remuneration and reimbursement of expenses.
- The company's Promoters, Directors and related entities have interests in certain companies, which are in businesses similar to its and this may result in potential conflict of interest with the company.
- The company's Promoters may continue to take decisions jointly after the completion of the Offer.
- The Company has not paid dividends in the last 3 Fiscals and during the current Fiscal on the Equity Shares. The Company's ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the Company's financing arrangements.
- The company has in this Red Herring Prospectus included certain non-GAAP financial and operational measures and certain other industry measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the real estate industry. The company relies on certain assumptions and estimates to calculate such measures, therefore such measures may not be comparable with financial, operational or industry-related statistical information of similar nomenclature computed and presented by other similar companies.
Pranav Constructions Ltd Peer Comparison
Understand the company’s industry standing
Pranav Constructions Ltd
Keystone Realtors Ltd
Godrej Properties Ltd
Face Value
10
10
5
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
761.596
2634.54
5131.43
EPS-Basis
8.18
6.25
61.43
EPS-Diluted
8.18
6.21
61.42
NAV Per Share
28.3
229.29
642.58
P/E-Basic EPS
---
64.86
33.25
P/E-Diluted EPS
---
---
---
RONW(%)
33.78
3.34
9.97
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 07 Sept 2026 & closes on 09 Sept 2026.
Pranav Constructions Limited was originally incorporated as 'Pranav Constructions Private Limited', a private limited company, dated July 31, 2003 with the RoC. The name of the Company was subsequently changed to 'Pranav Constructions Limited', upon conversion of the Company status from private limited to a public limited and a fresh certificate of incorporation was issued on July 29, 2024, by Registrar of Companies, Central Processing Centre.
Pranav Constructions is the leading real estate company, based on supply of units and number of completed and under construction MCGM - Redevelopment projects in Western Suburbs. The Company is primarily engaged in the business of redevelopment of cooperative housing societies.
The Company started Redevelopment in 2012 and are led by the Promoters, Pranav Kiran Ashar and Ravi Ramalingam. The Company launched first redevelopment project namely Plot 229' comprising of 30 units in the Goregaon Micro Market of Mumbai Western Suburbs (North Region) spanning a developable area of 16, 548 sq. ft. Further, Ashutosh CHSL' comprising of 20 units in Borivali West spanning a
developable area of 18, 962 sq. ft. launched in 2015.
The Company entered the Malad Micro Market of Mumbai's Western Suburbs (North Region) by launching a 3 redevelopment projects namely, Deep (Sunder Lane) CHSL, Rajendra Apartment CHSL & The Malad Rajhans CHSL comprising of 112 units spanning a developable area of 1,03,437 sq. ft. in 2017. It launched first mid-size redevelopment project, namely, Pravesh Co-operative Housing Society Limited comprising of 114 units in the Borivali Micro Market of Mumbai Western Suburbs (North Region) spanning a developable area of 1,49,830 sq. ft. in 2020.; launched 10 redevelopment projects comprising of 523 units and spanning a total developable area of 555,467 sq. ft. in 2022 and further launched a redevelopment project, namely, Pearl Palace in Santacruz spanning developable area of 82,064 sq.ft. in 2022-23.
Company is planning to raise funds from public through IPO aggregating to Rs 392 Crore equity shares through fresh issue and by issuing 2,856,869 equity shares through offer for sale.
Pranav Constructions Ltd IPO will close on 09 Sept 2026.
- Among the leading real estate companies in the Western Suburbs with a demonstrated growth and strong pipeline.
- Demonstrated project execution capabilities with in-house functional expertise.
- Capital efficient business model with high barriers to entry.
- Established a customer-centric brand in the Western Suburbs with robust stakeholder management.
- Track record of consistent financial performance.
- Experienced Promoters and professional senior management with good corporate governance practices.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Pranav Kiran Ashar | 40496986 | 46.46 | 40496986 | 35.07 |
| 2 | Ravi Ramalingam | 14721859 | 16.89 | 14721859 | 12.75 |
| 3 | Pranav Ashar Trust | 500 | --- | 500 | --- |
- The company's Redevelopment1 activities are geographically concentrated in the MCGM Region2, which has accounted for 99.70%, 99.69% and 99.50% of its revenue from operations for the Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Consequently, the company is 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.
- An inability to complete the company Under-construction Redevelopment Projects and Upcoming Redevelopment Projects by their respective expected completion dates or at all could have a material adverse effect on its business, reputation, results of operations and financial condition.
- If the company is not able to sell its Redevelopment Projects inventory in a timely manner, it may adversely affect the company's business, results of operations and financial condition.
- The company does not enters into agreements for supply of construction materials for its Redevelopment Projects and depends on a limited number of suppliers for construction materials. As of Fiscal 2026, Fiscal 2025 and Fiscal 2024, the company's top 10 suppliers contributed to 61.78%, 69.80% and 52.50% of the total material costs, respectively. Any increase in prices or interruption in the availability of construction materials could adversely impact its business, results of operations and financial condition.
- The company depends on a limited number of contractors for its business activities and operations. As of Fiscal 2026, Fiscal 2025 and Fiscal 2024, the company's top 10 contractors contributed to 47.10%, 56.41% and 46.92% of the total amount paid to contractors, respectively. Any delay or failures on the part of such contractors to adhere to their obligations could adversely affect its business operations and financial condition.
- The company may not be able to successfully identify and acquire Redevelopment Projects in the future, which may have an adverse impact on its business and the growth of the Company.
- The company has entered into Redevelopment agreements with Co-operative Housing Societies to acquire Redevelopment rights which may entail risks pertaining to irregularities in the title or use of land for which the company has acquired Redevelopment rights which could have an adverse impact on its business operations and financial performance.
- The company's business requires significant expenditure for Redevelopment Projects and is dependent on the availability of financing, which may not be available on terms acceptable to it in a timely manner or at all. The company's inability to obtain funding on reasonable terms, or at all, could affect its ability to construct the company's Redevelopment Projects and would have an adverse effect on its business and results of operations.
- The company is subject to penalty clauses under the Redevelopment agreements entered into with Co-operative Housing Societies for any delay in the completion or defects in construction of the Redevelopment Projects. If such penalties are levied, it may have an adverse effect on its business, financial condition and results of operations.
- Any negative operating cash flows in the future would adversely affect the company's cash flow requirements, which may adversely affect its ability to operates the company's business and implement its growth plans, thereby affecting the company's financial condition.
- The company is exposed to delays and uncertainties in project completion due to administrative or regulatory delays and legal disputes, which may adversely impact it operationally and financially.
- The company operations and the work force, customers and/ or third parties on property sites are exposed to various hazards, which could adversely affect its business, financial condition and results of operations.
- The company's Redevelopment Projects may requires TDRs18 to develop area beyond the permissible FSI19 which may not be available or may not be available at the expected price. Its inability to acquire TDRs may affect the company's ability to increase the size and scope of its Redevelopment Projects which may lead to lower revenues and impact the company's financial condition and results of operations.
- There are certain discrepancies in records available with the company as well as its filings with the RoC. The company cannot assure you that regulatory proceedings or actions will not be initiated against it and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard in the future which may impact its financial condition and reputation.
- The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of the company Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.
- There are certain outstanding litigation proceedings involving the Company and Directors, an adverse outcome which, may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.
- The company has incurred certain indebtedness and its lenders have imposed certain restrictive covenants on the company under its financing arrangements. The company failures to comply with such covenants may adversely affect its reputation, business and financial condition.
- The Company has availed unsecured loans aggregating to Rs.236.04 million and personal guarantees aggregating to Rs.2,272.50 million from its Promoters and certain entities which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect the company's cash flows, business operations and financial condition.
- There could be infringement of the company's intellectual property rights by third parties, which could damage its reputation and brand identity and harm the company's business and results of operations.
- Failures to successfully implement the company's business strategies and its Redevelopment Projects may materially and adversely affect the company's business prospects, financial conditions and results of operations.
- The company's inability to effectively manage its growth or to successfully implement the company's business plan and growth and expansion strategy could have an adverse effect on its business, results of operations and financial condition.
- Inability of the company's prospective customers to obtain financing or changes in interest rates and taxation laws for purchase of property may impact the sale of units in its Redevelopment Projects which may adversely affect the company's business, future growth and results of operations.
- An inability to maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- Any changes in the incidence and change in the rate of property taxes and stamp duties may impact the company's business operations, growth plan, financial condition and results of operation.
- The company is required to obtain certain approvals or permits, and fulfil certain conditions precedent in respect of some of the approvals or permits. Any failures to obtain the necessary approvals in time or at all may results in material delays which could impact its growth strategy and results of operation.
- Compliance with, and changes to, safety, health and environmental laws and various labour, workplace and related laws and regulations impose additional costs and may increase the company's compliance costs and may adversely affect its results of operations and the company's financial condition.
- The company's offices, including its Registered and Corporate Office are held by the company on leave and license basis. If these leave and license agreements are terminated or not renewed on terms acceptable to the company, it could adversely affect its business, financial condition, results of operations, and cash flows.
- The company faces competition from various real estate developers. Its inability to compete successfully with the company's competitors, may adversely affect its business prospects and financial condition.
- A significant portion of the company's working capital needs are funded by Pre-Sales. Any cancellation of sales or change in the laws or regulations governing the use of Pre-Sales may affect its working capital and financial position.
- Its may utilize a portion of the Net Proceeds towards acquisition of future redevelopment projects and the company has identified such redevelopment projects as on the date of this Red Herring Prospectus.
- The proceeds from the Offer for Sale component of the Offer shall be received directly by the Selling Shareholder.
- The company's success depends in large part upon its qualified personnel, including the company's Directors, Key Managerial Personnel and management team, and the loss of or its inability to attract or retain such persons could adversely affect the company's business, results of operations and financial condition.
- There have been certain instances of delays in payment of statutory dues by the Company in the past. Any delay in payment of statutory dues by the Company in future, may result in the imposition of penalties and in turn may have an adverse effect on the Company's business, financial condition, results of operation and cash flows.
- The company has dues which are outstanding to its creditors. Any failures in payment of these dues may have a material adverse effect on the company's reputation, business and financial condition.
- One of the members of the company's Promoter Group has an estranged relationship with one of its Promoters, therefore the company will not be able to obtain any details regarding this member of Promoter Group which are required to be disclosed in relation to Promoter Group under the SEBI ICDR Regulations in this Red Herring Prospectus and the Prospectus. The disclosures relating to this member of the Promoter Group has been included in this Red Herring Prospectus based on information available in public domain. Accordingly, its cannot assure you that the disclosures relating to such members of the company's Promoter Group are accurate, complete, or updated. Further, details in relation to Connected Persons which may qualify as a member of its Promoter Group have not been disclosed in this Red Herring Prospectus.
- Investors should not relies on the Company undertaking bonus issuances in the future, including at large or frequent ratios, as done in the past. Further, its ability to issue bonus shares in the future will depends on the company's earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- Work stoppages, shortage of labour and other labour problems could adversely affect the company's business. Further, its operations are dependent on contract labour and an inability to access adequate contract labour at reasonable costs at the company's project sites may adversely affect its business prospects and results of operations.
- Changes in technology and breaches of information technology systems may affect the company's business by making its construction and development capabilities less competitive or obsolete. If the company is unable to adapt in a timely manner, its business and results of operations could be adversely affected.
- Certain information contained in this Red Herring Prospectus including that in relation to the company Completed Redevelopment Projects, Under-construction Redevelopment Projects, Upcoming Redevelopment Projects and the area expressed to be covered by its Redevelopment Projects are based on management estimates and may be subject to uncertainty.
- The company has certain contingent liabilities, which if they materialize, may adversely affect its business, financial condition and results of operations.
- It is difficult to compare the company's performance between periods, as its revenues and expenses may vary significantly between fiscal periods.
- The sector in which the Company operates, i.e., the real estate sector faces several structural and macroeconomic challenges, including regulatory delays, RERA compliance, high capital requirements, rising property prices, and economic volatility, all of which could adversely impact its business, operations, and financial results.
- The ongoing geopolitical conflict involving the United States, Israel and Iran may adversely affect, the company's business, results of operations and financial condition.
- Its may provide guarantees to lenders on behalf of third parties, and any failures to repay such loans by third parties, may affect the company's business, results of operations and financial condition.
- Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by C&W exclusively commissioned and paid for by it for such purpose and any reliance on such information is subject to inherent risks.
- The average cost of acquisition of Equity Shares by the company's Promoters and the Selling Shareholder may be less than the Offer Price. Further, its Promoters and the Selling Shareholder has subscribed to, and purchased, Equity Shares, at a price which could be below the Offer Price.
- The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- Its may requires additional equity or debt in the future in order to continue to grow the company's business, which may not be available on favorable terms or at all which may impact its financial condition, cash flows and results of operations.
- Under Indian law, foreign investors are subject to investment restrictions that limit the company's ability to attract foreign investors, which may adversely affect the trading price of the Equity Shares. Further, restrictions on foreign direct investments ("FDI") and external commercial borrowings in the real estate sector may hamper its ability to raise additional capital. Further, foreign investors are subject to certain restrictions on transfer of shares.
- Fraud or improper conduct may delay the development of a project and adversely affect the company's business and results of operations.
- Its Promoters hold Equity Shares in the Company and are therefore interested in its performance in addition to their normal remuneration and reimbursement of expenses.
- The company's Promoters, Directors and related entities have interests in certain companies, which are in businesses similar to its and this may result in potential conflict of interest with the company.
- The company's Promoters may continue to take decisions jointly after the completion of the Offer.
- The Company has not paid dividends in the last 3 Fiscals and during the current Fiscal on the Equity Shares. The Company's ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the Company's financing arrangements.
- The company has in this Red Herring Prospectus included certain non-GAAP financial and operational measures and certain other industry measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the real estate industry. The company relies on certain assumptions and estimates to calculate such measures, therefore such measures may not be comparable with financial, operational or industry-related statistical information of similar nomenclature computed and presented by other similar companies.
The Issue type of Pranav Constructions Ltd is Book Building.
The minimum application for shares of Pranav Constructions Ltd is 120.
The total shares issue of Pranav Constructions Ltd is 28308481.
Initial public offer of up to 28,308,481 equity shares of face value of Rs. 10/- each ("Equity Shares") of Pranav Constructions Limited (the "Company" or the "Company" or the "Issuer") for cash at a price of Rs. 124 per equity share (including a premium of Rs. 114 per equity share) (the "Offer Price") aggregating up to Rs. 351.03 Crores (the "Offer") comprising a fresh issue of up to 25,451,612 equity shares by the company aggregating up to Rs. 315.6 Crores (the "Fresh Issue") and an offer for sale of up to 2,856,869 equity shares of face value of Rs.10/- each by Biourja India Infra Private Limited aggregating up to Rs. 35.43 Crores (such offer for sale of equity shares of face value of Rs. 10/- each by the selling shareholder, the "Offer For Sale"). The offer shall constitute [*]% of the post-offer paid up equity share capital of the company.
Price Band: Rs. 124 per equity share of face value of Rs. 10 each.
The floor price is 12.40 times the face value of the equity shares.
Bids can be made for a minimum of 120 equity shares bearing face value of Rs. 10 each and in multiples of 120 equity shares thereafter.