India’s Puranik Builders gets regulatory approval for IPO
By Vinu Lal
12:27, 23 November 2021
Indian real estate developer Puranik Builders has received approvals to raise funds through an initial stake sale to the public, according to a web posting by market regulator Securities and Exchange Board of India (Sebi).
Puranik Builders’ IPO will have a fresh issue of up to 5.1 billion shares and an offer for sale of up to 945,000 shares by existing investors, according to early papers filed with Sebi.
The company may also consider a pre-IPO placement of up to INR1.5bn (£15.1m). If a pre-IPO placement is undertaken, then the amount raised will be reduced from the fresh issue.
Use of proceeds
The company expects to use INR3.62bn of the net proceeds for repayment of debt in 2022. A part of the proceeds, not exceeding 25%, will be also used for general corporate purposes.
Puranik Builders is a residential real estate developer in western Indian state of Maharashtra’s Mumbai metropolitan region and Pune metropolitan region. As of 31 July 2021, the company had 35 completed projects, 23 ongoing projects and 17 forthcoming projects.
The developer posted a net profit of INR363.03m for the financial year ended 31 March 2021, a drop of 41% from the INR 512.29m recorded a year ago. Its revenue from operations fell to INR5.02bn from INR 7.21bn recorded during the previous financial year.
Elara Capital (India) and Yes Securities are managers to the issue. Following the IPO, the company intends to list its shares both on BSE and the National Stock Exchange.
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