Pranav Constructions has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The IPO involves a combination of a fresh issuance of Rs 392 crore and an Offer For Sale (OFS) of 28.57 lakh shares by the promoter and an investor shareholder.
The company intends to use the proceeds from its fresh issuance worth Rs 223.75 crore towards obtaining government and statutory approvals, purchasing additional FSI (Floor Space Index), compensating members for alternate accommodation, and addressing hardship compensation for certain under-construction and upcoming redevelopment projects. Additionally, Rs 74 crore will be used for debt repayment, acquiring future redevelopment projects, and a portion will be used for covering general corporate expenses. Centrum Capital and PNB Investment Service are the book-running lead managers. The equity shares are proposed to be listed on BSE and NSE.
Pranav Constructions is a leading real estate developer, particularly in the Municipal Corporation of Greater Mumbai (MCGM) redevelopment segment in Mumbai's Western suburbs. It specializes in redevelopment projects catering to the Economical, Mid, Mass, and Aspirational housing segments.
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