Puranik Builders IPO – Review, Allotment Status, Subscription
| Face Value | Rs 10 |
| Price Band | Rs [●] |
| Listing At | BSE, NSE |
| Min. Order Quantity | NA |
| Listing Date | NA |
| Offer for Sale | Rs Million |
| Fresh Issue | Rs 5,100 Million |
| IPO Size | Rs Million |
| Tick Size | 1 |
Puranik Builders IPO – Summary
They are among the prominent residential real estate developers in Mumbai Metropolitan Region (“MMR”) and Pune Metropolitan Region (“PMR”) based on a number of units currently being marketed in these regions. They are also among the leading residential real estate developers in the growing Thane region of MMR based on the projects currently being marketed and corresponding units sold.
They have a longstanding presence of over 31 years in the real estate market in India, developing residential projects in the mid-income affordable housing segment in the MMR and the PMR real estate markets.
The Promoter of this company is SHAILESH PURANIK, SHRIKANT PURANIK, YOGESH PURANIK, NILESH PURANIK, PURANIK BUSINESS PRIVATE TRUST AND PURANIK FAMILY PRIVATE TRUST . The lead manager to the issue is Elara Capital (India) Private Limited and YES Securities (India) Limited, and the Registrar to this issue is KFin Technologies Private Limited.
Puranik Builders IPO Price Band
The face value of each share is Rs.10, but the price band of the IPO is Rs.[●]
Puranik Builders IPO Equity Size
This Initial Public Issue of X Equity Shares of Rs.10 each for cash at a price of Rs.[●] per equity share aggregating to Rs.[●] Million.
Puranik Builders IPO Share Offering
Fresh Issue: The Issue (excluding the Market Maker Reservation Portion) of [●] Equity Shares of Rs.10/ each.
Issue Size: X Equity Shares of Rs.10 each, aggregating to Rs.[●] Million
Puranik Builders IPO Grey Market Premium
The Puranik Builders Limited IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.
Puranik Builders IPO – Company Overview
They commenced operations in Thane in 1990 and have over the years diversified into other micro-markets within the MMR and the PMR. Their projects primarily cater to certain research-based strategic price ranges within the mid-income affordable housing market segment. As of July 31, 2021, they had completed 35 projects in the MMR and PMR.
They believe they have consistently catered to evolving customer preferences, including theme-based projects, thereby successfully navigating fluctuating market conditions, leveraging their considerable experience operating in MMR and PMR markets under the guidance of their technically qualified Promoters supported by a team of experienced professionals.
They have established a track record of successfully executing projects in the MMR and the PMR, particularly in the mid-income affordable housing segment, through theme-based developments and additional amenities. As of July 31, 2021, they had developed 554,197 square meters (5,965,381 square feet) of a Developable Area across 35 Completed Projects.
They believe that their deep understanding of the relevant real estate market, design and execution capabilities, and the strong Puraniks brand and extensive marketing initiatives have enabled them to successfully grow their business.
Puranik Builders IPO – Financial Statements
A quick look into the past financial performance of the company to understand its performance of the business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & Million) | |||||
| 31-July-21 | 31-July-20 | Mar-21 | 31-Mar-20 | Mar-19 | |
| Total Assets | 21,087.02 | 20,780.37 | 20,928.03 | 20,083.20 | 19,649.51 |
| *Total Revenue | 1,911.30 | 423.82 | 5,135.60 | 7,302.40 | 7,212.30 |
| Total Expense | 1,695.04 | 415.47 | 4,686.57 | 6,582.85 | 6,230.19 |
| Profit After Tax | 175.26 | 3.94 | 363.03 | 512.29 | 712.70 |
Earnings per Equity Share (in Million)
| 31-July-21 | 31-July-20 | Mar-21 | 31-Mar-20 | Mar-19 | |
| Basic & Diluted | 2.97 | 0.14 | 6.08 | 7.72 | 10.70 |
Further, their PAT for the period ended on March 31, 2021, March 31, 2020, and March 31, 2019, were Rs. 363.03 Million, Rs. 512.29 Million, and Rs. 712.70 Million respectively.
Puranik Builders IPO – Promoters
The Promoter of this company is:
- SHAILESH PURANIK, SHRIKANT PURANIK
- YOGESH PURANIK
- NILESH PURANIK
- PURANIK BUSINESS PRIVATE TRUST
- PURANIK FAMILY PRIVATE TRUST
List of Related Parties (Key Managerial Personnel)
- Shailesh Puranik, Chairman and Managing Director
- Shrikant Puranik, Whole Time Director
- Yogesh Puranik, Whole Time Director
- Nilesh Puranik, Whole Time Director
- Amol Shimpi, Independent Director
- Satyendra J Sonar, Independent Director
Puranik Builders IPO – Promoters Holding
- Pre Issue Share Holding – %
- Pos Issue Share Holding – %
Puranik Builders IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | Up to X Equity Shares aggregating up to Rs.[●] Million |
| of which: | |
| Issue Reserved for the Market Makers | Up to [●] Equity Shares aggregating up to Rs.[●] Million |
| Net Issue to the Public | Up to [●] Equity Shares aggregating up to Rs.[●] Million |
| Of which: | |
| Retail Investors Portion | Not less than [●] Equity Shares |
| Other than Retail Individual Investors | Not more than [●] Equity Shares |
| Equity Shares outstanding prior to the Issue | 57,648,207 Equity Shares |
| Equity Shares outstanding after the Issue | X Equity Shares |
Puranik Builders IPO Issue Object
Their Company proposes to utilize the Net Proceeds towards funding the following objects:
1. prepayment or repayment of all or a portion of certain outstanding borrowings availed by their Company on a consolidated basis; and
2. general corporate purposes
Puranik Builders IPO – Business Strategy
- Continue to focus on the mid-income affordable housing segment.
- Consolidate their position as a prominent real estate developer in the MMR and the PMR.
- Capitalize on emerging opportunities in rapidly evolving regulatory regimes and industry trends.
- Continue to focus on their flexible and asset-light model.
- Pursue opportunities in the low-income affordable housing segment.
- Continue to upgrade technology to drive operational efficiency and deliver quality products to their customers.
Puranik Builders IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Longstanding operations in the attractive real estate markets of MMR and PMR;
- Focus on and experience in the mid-income affordable housing segment;
- Strategic pricing for the MMR and PMR micro-markets;
- Differentiated and diversified product offerings;
- Integrated project execution and management capabilities;
- Established brand and customer goodwill in the MMR and the PMR markets;
- Proven track record for development of quality projects;
- Experienced and qualified Promoters and senior management team;
- Strong pipeline of projects; and
- Asset-light model for the development of projects through joint development agreements and joint venture arrangements.
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 6.08 | 10.41 | 58.41 |
| 31-Mar-20 | 7.72 | 14.69 | – |
| Mar-19 | 10.70 | 23.83 | – |
Puranik Builders IPO: Competitive Peers
| Face Value (Rs.) | P/E | EPS (Rs.) | Return on Net Worth (%) | Total Income (Rs. in Millions) | |
| Puranik Builders Limited | 10 | [●] | 6.08 | 10.41 | 350.59 |
| Listed Peers | |||||
| Oberoi Realty Limited | 10 | 37.51 | 20.33 | 7.89 | 20,525.80 |
| Godrej Properties Limited | 5 | (211.28) | (7.48) | (2.28) | 7,649.20 |
| Prestige Estates Projects Limited | 10 | 11.64 | 36.32 | 21.81 | 72,644.00 |
| Sunteck Realty Limited | 1 | 126.49 | 2.98 | 1.51 | 6,138.65 |
| Sobha Limited | 10 | 117.12 | 6.57 | 2.57 | 21,097.79 |
| Brigade Enterprises Limited | 10 | (165.25) | (2.24) | (1.97) | 19,499.70 |
| Kolte-Patil Developers Limited | 10 | (386.58) | (0.73) | (0.62) | 6,917.40 |
| Macrotech Developers Limited | 10 | 1,077.77 | 1.01 | 0.87 | 54,485.75 |
Puranik Builders IPO Lead Managers
| Lead Managers |
Elara Capital (India) Private Limited YES Securities (India) Limited |
Puranik Builders IPO – Other Details
- Statutory Auditor – Sanjay Rane & Associates
- Legal Counsel to the Company – M/s. Crawford Bayley & Co.
- Bankers to the Company – Andhra Bank, HDFC Bank Limited, and State Bank of India
Puranik Builders IPO Review by Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
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