Puranik Builders Ltd IPO
Puranik Builder Ltd filed a DRHP with SEBI on June 26, 2018, worth over Rs.810 crore and it was finally approved by SEBI on 23rd November,2021. The is...
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Last Updated: 10 February 2022 11:01 AM by 5Paisa
IPO synopsis:
Puranik Builder Ltd filed a DRHP with SEBI which finally approved by SEBI on 23rd November,2021. The issue consists of a fresh issue worth Rs.510 crore and an offer for sale of up to 945,000 equity shares. The OFS consists of 472,500 shares each being offloaded by Ravindra Puranik and Gopal Puranik. Elara Capital Pvt Ltd and Yes Securities are the book running lead managers to this issue. The company plans to use Rs.362 crore of the net proceeds for the repayment and payment of debts in 2022.
Puranik Builder was founded in 1968 by Ravindra Puranik and Gopal Puranik. The company is one of the prominent real estate developers in the Mumbai Metropolitan Region and the Pune Metropolitan Region. The company started their operations in Thane in 1990 and slowly diversified into MMR and PMR. Puranik’s projects primarily cater to the mid-income affordable housing market segment. 35 projects were successfully completed in MMR and PMR, as of July, 31, 2021. They have a very strong track record of successful projects in MMR and PMR and as of July 31, 2021, the company has developed 5,965,381 square feet of develop-able area.
Financials: (In Rs cr)
|
Particulars |
FY21 |
FY20 |
FY19 |
|
Total Revenue |
513.5 |
730.2 |
721.2 |
|
PAT |
36.3 |
51.22 |
71.3 |
|
EPS (In Rs) |
6.08 |
7.72 |
10.7 |
|
Particulars |
FY21 |
FY20 |
FY19 |
|
Total Assets |
2,092.8 |
2,008.3 |
1,964.95 |
|
Total Borrowings |
1,354.4 |
1,286 |
1,239 |
|
Equity Share Capital |
57.65 |
57.65 |
57.65 |
Peer comparison (FY20-21)
|
Company |
Total Income (In Rs cr) |
PAT (In Rs cr) |
|
Godrej Properties |
1241.42 |
(42.81) |
|
Oberoi Realty |
2090.58 |
741.54 |
|
Sobha Developers |
2191.1 |
65.5 |
|
Kolte Patil Developers |
527.34 |
(769) |
|
Macrotech Developers |
4445.98 |
(185.72) |
|
Prestige Estate |
4,228.6 |
212.8 |
Strengths
1. The company’s longstanding operations in the very attractive real estate market of Mumbai and Pune has proven to be very lucrative for the company. Mumbai had the largest sales volumes and highest average sales prices at launch.
2. The company focuses on the mid- income affordable housing segment. The markets of PMR and MMR provide a large customer base in this segment.
3. Strategic pricing scheme for its core markets. The mid-income affordable housing segment ranges between Rs.4.2 million- Rs.11.5 million in MMR and between Rs.3.2 million- Rs.10 million in PMR.
4. The products offered by Puranik Builders are diversified and differentiated. The company started theme based developments for the middle income housing market, like Tokyo Bay and Puranik City Reserva in MMR.
5. Puranik Builders are a well known and established brand and have a lot of customer goodwill in the market.
Risks
1. Puranik Builders is heavily dependent on just two market- MMR and PMR.
2. The real estate market is very volatile in nature and more so after the Covid-19 pandemic, so if there are any other hurdles in the road for the real estate sector, the entire business of the company will be at risk.
3. There may be problems in completing the projects according to the scheduled dates, which will in-turn affect the customer goodwill.
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