Puranik Builders files IPO paper with SEBI for the third time

Puranik Builders earned revenue of Rs 513 crore in FY21 compared to Rs 730 crore in FY20, falling nearly 30% in revenue.

Renowned real estate company Puranik Builders has filed an IPO paper with capital market regulator SEBI to raise funds through an initial public offering (IPO).

According to the paper filed with the Securities and Exchange Board of India (Sebi), Puranik Builders IPO consist of Rs 510 crore worth of shares and the sale of 945,000 equity shares by the company’s promoter group. As a part of the offer, Ravindra Puranik and Gopal Puranik will also offload equity shares up to 472,500 each.

Puranik Builders earned revenue of Rs 513 crore in FY21 compared to Rs 730 crore in FY20, falling nearly 30% in revenue. Simultaneously, the company also saw a decrease in profit after tax (PAT) which fell to Rs 36 crore in FY21 from Rs 51 crore during last year, according to DRHP.

The net cash flow of the company from operations stands at Rs 57 crore in the four months ending July 31, 2021.

The company in its statement regarding the effects of Covid-19 said that the pandemic has adversely affected its business, financial condition, result of operations, cash flows, liquidity, and performance, and this effect may reduce demand for new projects in future

They also said that the pandemic has reduced the business activity and demand for real estate development, and if it stays that way then it could negatively impact their performance in sales for their projects.

The Mumbai-based company is also considering pre-IPO placement for up to Rs 150 crore. If the placement is approved, the amount will reduce from the fresh issue. Amount raised through the issue will be utilized for loan repayment and other business purposes.

In addition, Puranik Builders are also eyeing stock exchanges to receive the benefits of its equity shares. With its presence for over 31 years, the company is developing affordable residential housing projects for mid-income segment groups in the Mumbai Metropolitan Region and Pune Metropolitan Region.

Elara Capital (India) Private Limited and Yes Securities (India) Limited are the book running lead managers of the issue. This is the third attempt of Puranik Builders to go public and the shares will be listed on BSE and National Stock Exchange.

The company earlier had filed the papers with Sebi to float an initial share-sale, for which they receive the clearance to launch the public issue but did not get approval with the plans. Earlier to this, they approached SEBI with IPO papers in June 2018.

The company said to this day of IPO filing, it has not considered equity shares split or consolidation.

Published by– livemint