Real estate developer Puranik Builders has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The IPO comprises fresh issue of shares worth ₹510 crore and an offer for sale up to 945,000 equity shares by the company’s promoters group, according to the draft papers filed with Securities and Exchange Board of India (Sebi) on Monday. As a part of the offer for sale, Ravindra Puranik and Gopal Puranik will offload up to 4,72,500 equity shares each.
For FY21, the company’s revenue stood at ₹513 crore as compared to ₹730 crore in FY20, a fall of nearly 30 per cent. Meanwhile, the profit after tax (PAT) fell to ₹36 crore in FY21 from ₹51 crore in the year-ago period, according to the DRHP.
The company has a net cash flow from operations at ₹57 crore in four month period ending July 31, 2021.
Talking about the risks affecting the business, the company said that the Covid-19 pandemic adversely affects its business, financial condition, results of operations, cash flows, liquidity and performance, and it may reduce the demand for projects in future.
It also said that the pandemic has caused a material decline in general business activity and demand for real estate developments, and if this persists, it could adversely affect our ability to execute sales of units in developments.
The Mumbai-based residential real estate developer may consider a pre-IPO placement aggregating for up to ₹150 crore. If such placement is undertaken, the amount raised will be reduced from the fresh issue. Proceeds of the issue will be utilised towards repayment of loan and other general corporate purposes.
In addition, the company plans to receive the benefits of listing of its equity shares on the stock exchanges. Puranik Builders has a presence of over 31 years in the real estate market in India, developing residential projects in the mid-income affordable housing segment in the Mumbai Metropolitan Region and Pune Metropolitan Region real estate markets.
Elara Capital (India) Private Limited and YES Securities (India) Limited are book running lead managers to the issue. Shares of the company will be listed on BSE and National Stock Exchange. This will be the company’s third attempt to go public. Earlier in November 2019,
Puranik Builders had filed papers with Sebi to float an initial share-sale and had received the regulator’s clearance to launch the public issue but did not go ahead with the plans then. Prior to that, the residential real estate developer had approached Sebi with its IPO papers in June 2018.
The company said it has not undertaken a split or consolidation of the equity shares in the one year preceding to the date of IPO filing.
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