Indian Realty Developer Puranik Builders Re-files For $128.5m IPO

Real estate developer Puranik Builders Ltd, which is primarily active in Mumbai and Pune, on Thursday re-filed the draft prospectus for its initial public offering (IPO).

The company is expected to raise ₹900 crore through the initial share sale, said one person directly aware of the development, requesting anonymity.

The share sale, which is a combination of a fresh issue and offer for sale (OFS), will see Puranik raise ₹810 crore in fresh capital, of which ₹700 crore will be used to prepay or repay outstanding debt, and the rest for general corporate purposes. A copy of the latest offer document was reviewed by Mint.

Puranik had a total debt of ₹1,291 crore as on 30 September, according to the draft prospectus.

Puranik had filed for an IPO in June last year and had received approval from the Securities and Exchange Board of India (Sebi) on 5 October 2018. But, the Sebi approval expired as the company postponed its IPO plan.

“The company could not meet its listing deadline earlier because of the choppy market environment. It has filed again and would look to go public some time next year,” the person said. Sebi rules allow a one-year window for companies to hit the primary market after receiving its approval. If a firm fails to do so, it has to seek fresh permission.

The company, which focuses on residential realty, has developed several theme-based projects, including Rumah Bali, Puraniks City Reserva and Tokyo Bay in Mumbai, and Aldea Espanola and Abitante in Pune.

As on 30 September, Puranik had 24 ongoing projects with a total developable area of 1.05 million sq. m in the Mumbai Metropolitan Region (MMR). It also has projects in the Pune Metropolitan Region (PMR) for the mid- and low-income affordable housing segment.

This article was first published on livemint.com.