Puranik Builders Limited IPO Company Profile:

Puranik Builders Limited is one of the leading real estate companies, providing comprehensive residential and commercial solutions across various categories. They present quality structures, innovative designs, and concepts, and strict adherence to delivery schedules with conducive budget estimates. Its mission is to become the most reputed real estate company in India as well as abroad, by achieving the highest level of customer satisfaction, quality, and business ethics. As of July 31, 2022, they had 39 Completed Projects, 29 Ongoing Projects, and 13 Forthcoming Projects across the MMR (Mumbai Metropolitan Region) and the PMR (Pune Metropolitan Region), under the Puraniks brand. The types of projects the company works on are:

  • Residential Projects
  • Commercial Projects
  • Puranik Township

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    Details Completed Projects Ongoing Projects Forthcoming Projects Total %
    Number of Projects
    Mumbai Metropolitan Region 25 13 15 53 70.67%
    Pune Metropolitan Region 10 10 2 22 29.33%
    Total 35 23 17 75 100.00%
    Estimated Saleable Area (square feet)
    Mumbai Metropolitan Region 4091075 11701064 12726972 28519111 84.83%
    Pune Metropolitan Region 1874306 2352756 873623 5100685 15.17%
    Total 5965381 14053820 13600595 33619796 100.00%

    Puranik Builders Limited IPO Details:

    IPO Open Date Not Available
    IPO Close Date Not Available
    Listing Date Not Available
    Face Value ₹10 per share
    Price Not Available
    Lot Size Not Available
    Issue Size Not Available
    Fresh Issue  [●] shares

    (aggregating up to ₹510.00 Cr)

    Offer for Sale 945,000 shares

    (aggregating up to [●])

    Issue Type Book Built Issue IPO
    Listing At BSE, NSE
    QIB Shares Offered Not more than 50% of the Offer
    NII (HNI) Shares Offered Not less than 15% of the Offer
    Retail Shares Offered Not less than 35% of the Offer
    Company Promoters Shailesh Puranik, Shrikant Puranik, Yogesh Puranik, Nilesh Puranik, Puranik Business Private Trust and Puranik Family Private Trust

    Puranik Builders Limited IPO Financial analysis (Profit & Loss statement):

    Particulars FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) CAGR
    Revenue 796.62 502.27 720.61 3.40%
    Other Income 4.32 11.29 9.63  
    Operating cost 567.98 330.49 496.68 4.57%
    Employee Cost 4.56 3.77 26.19  
    Other expenses 6.11 3.72 5.45  
    EBITDA 222.29 175.58 201.92 3.26%
    EBITDA Margin% 27.90% 34.96% 28.02%  
    Depreciation 0.82 1.17 1.98  
    Interest 151.17 129.48 127.97  
    PBT 70.3 44.93 71.97 -0.78%
    Total tax 12.04 8.6 20.72  
    PAT 58.26 36.33 51.25 4.37%
    Dep./revenue% 0.10% 0.23% 0.27%
    Int./revenue% 18.98% 25.78% 17.76%

    Puranik Builders Limited IPO Strengths:

    • Puranik Builders Limited is well positioned to leverage its established presence and longstanding operations in the MMR, particularly in Thane, and PMR to capitalize on the significant demand for real estate projects in such markets across various price ranges.

    • The MMR and the PMR real estate markets have high barriers to entry due to the limited availability and the high cost of land, as well as knowledge of the regulatory and approval processes required for the development of a project in such areas. Puranik Builders Limited’s brand, longstanding operations, and extensive experience in the MMR and the PMR provide it with significant opportunities in these attractive fast-growing markets.

    • Puranik Builders Limited’s strategic and flexible project development approach enables it to simultaneously undertake multiple projects and reduce project risks associated with land development. These arrangements also enable the company to focus on an asset-light business model, reducing its dependence on debt financing, thereby strengthening the balance sheet and reducing the leverage ratio of the company. As the company deploys relatively less capital under these models, it is better placed to generate significant returns on capital, which also decreases the risk portfolio on land investment.

    • Puranik Builders Limited’s execution capabilities comprising in-house operations consisting of design, engineering, procurement, construction, and quality assurance teams have enabled it to timely complete its projects, and establish itself as one of the prominent real estate developers for the mid-income affordable housing segment in the MMR and the PMR.

    • Puranik Builders Limited has a proven track record of executing of a range of residential projects. As of July 31, 2021, the company had sold residential units with an aggregate Developable Area of 5,965,381 square feet across 35 Completed Projects across the MMR and PMR markets, including in Thane, Pune, and Mulund.

    • Puranik Builders Limited’s focus on, and extensive experience in, the mid-income affordable housing segment within the micro-markets of MMR and PMR presents significant opportunities. The share of affordable and mid-income housing in new unit launches continues to be the largest, accounting for 88% of the share in 2020.

    Puranik Builders Limited IPO Risk Factors:

    • Puranik Builders Limited has in the past experienced, and may in the future, experience negative operating cash flow. Any negative cash flows in the future would adversely affect the cash flow requirements, which may adversely affect the ability to operate the business and implement the growth plans, thereby affecting the financial condition of the company.

    • Puranik Builders Limited’s business, financial condition, and results of operations have been and will continue to be heavily dependent on the performance of, and the prevailing conditions affecting, the real estate markets in the MMR and PMR. The real estate markets in these regions may be affected by various factors outside the company’s control, including prevailing local and economic conditions, changes in the supply and demand for properties comparable to those it develops, changes in the applicable governmental regulations, demographic trends, employment, and income levels and interest rates, among other factors.

    • Significant increases in prices including increases in taxes and levies or shortage of or delay or disruption in the supply of, construction materials, contract labour, and equipment could adversely affect the estimated construction cost and timelines resulting in cost overruns.

    • As of July 31, 2021, Puranik Builders Limited had 23 Ongoing Projects with a Developable Area of 14,053,820 square feet. As of July 31, 2021, the 23 Ongoing Projects comprised 20,541 units, of which 13,492 units remain unsold.

    • Puranik Builders Limited’s business is capital intensive and requires significant expenditure for land acquisition and development, and is therefore heavily dependent on the availability of real estate financing, which may not be available on terms acceptable to the company in a timely manner or at all.

    Objects of the Offer:The net proceeds of the Fresh Issue (“Net Proceeds”) are proposed to be utilised in the following manner:

    • Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company on a consolidated basis; and

    • general corporate purposes

    Puranik Builders Limited IPO Prospectus:

    Registrar to the offer:KFin Technologies Private LimitedTelephone: +91 40 6716 2222Email: puranik.ipo@kfintech.comInvestor grievance e-mail: einward.ris@kfintech.comWebsite: www.kfintech.comContact Person: M. Murali Krishna

    Puranik Builders Limited IPO FAQ

    Ans. Puranik Builders Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.

    Ans. The company will open for subscription on <>.

    Ans. The minimum lot size that investors can subscribe to is <> shares.

    Ans. The Puranik Builders Limited IPO listing date is <>.

    Ans. The minimum lot size for this upcoming IPO is <> shares.