Puranik Builders has raised Rs. 510 crore through an initial public offer (IPO) and there is an offer for sale (OFS) of 9,45,000 equity shares by the promoters.
Puranik Builders started their journey in Thane in 1990. They are one of the leading players in real estate providing comprehensive residential and commercial solutions. They have an immense track record of successfully developing projects in MMR and PMR. As of July 31, 2021, Puranik Builders has finished 32 projects of their own and 43 projects through the joint venture model. A few of their significant and ongoing projects are Rumah Bali, Puraniks City Reserva, Tokyo bay in MMR, Aldea Espanola and Abitante in the PMR.
The company has its in-house house studios and structural design capabilities that help them to conceptualise and design.
Puranik Builders IPO Objectives:- The fund will be used to strengthen the market capabilities
- A part of the fund will be used for any funding growth opportunities.
Why should you invest in Puranik Builders IPO?
- With the rapid growth of population and city boundaries, the real estate market is one of the profitable sectors right now
- In order to boost the real estate market, the Budget 2022 provides multi-fold announcements that are likely to impact real estate
- Due to huge rise in population, there is a huge base for India’s real estate sector
Puranik Builders Noteworthy Highlights:
Puranik Builders have successfully developed over 4.21 Lakh sq. mts in the span of two decades, while over 9.88 Lakh sq. mt. area is under construction.
IPO Financials
| Particulars | As on/ For Fiscal 2021 | As on/ For Fiscal 2020 |
|---|---|---|
| Basic Earnings/ (loss) per Equity Share (₹) | 6.08 | 7.72 |
| Diluted Earnings/ (loss) per Equity Share (₹) | 6.08 | 7.72 |
| Return on Net Worth (%) | 10.41 | 14.69 |
| Net Asset Value Per Equity Share (₹) | 58.41 | 52.54 |
| EBITDA (Rs. in million) | 1,642.67 | 1,922.87 |
Know before investing
Strengths
3Puranik Builders have diversified and differentiated products
With the rise in the middle class, the brand focuses on the mid income affordable housing segment
Puranik Builders have a strong pipeline of projects that will help in the business growth
Risks
3The company has got under joint development with third parties which can lead to several risks
Due to increase in land price and scarcity of properties, the business may get affected
Among the ongoing projects, there are lots of unsolved properties which can affect the finance and the cash flow of the business
