Pranav Construction’s initial public offering of Rs 351 crore has been fully subscribed on its first day of bidding. The construction company’s issue achieved 5.69x subscription by the end of Day 1, with non-institutional investors and retail applicants leading the demand.
Prior to public bidding, the company raised Rs 84.24 crore via anchor bidding. The IPO’s issue price band is fixed at Rs 118 to Rs 124 per share, and the issue will remain open for bidding till September 9.
Pranav Construction IPO: Issue subscribed 5.69 times
The book-built issue received 12.78 crore shares against its demand of 2.24 crore, with heavy demand seen in the NII segment, which was oversubscribed 10.60x. Active participation was also witnessed in the retail individual buyer portion, which achieved an oversubscription of 5.76x on the first day.
However, the qualified institutional buyers (QIBs) portion was not fully subscribed, being subscribed by 0.87x or 87%.
| Investor Category | Subscription (Day 1) |
| Qualified Institutional Buyers (QIBs) | 0.87x |
| Non-Institutional Investors (NIIs) | 10.60x |
| Retail Individual Investors (RIIs) | 5.76x |
| Overall | 5.69x |
Pranav Construction IPO: GMP at 34%
As per trackers, its stock is trading in the unlisted markets at a grey market premium of Rs 42.50, suggesting a listing price of Rs 166.50, based on the upper end of the share price band. This translates into gains of 34% per share and a profit of Rs 5,100 per lot.
However, readers must note that GMP is an unregulated method to estimate the listing price and is highly vulnerable to market manipulation.
Pranav Construction IPO: Offer size
Pranav Construction’s Rs 351.03 crore issue comprises fresh equity worth Rs 315.60, which will be raised through the issuance of 2.55 crore shares of face value Rs 10.
BioUrja India Infra Private, the investor and selling shareholder, will offload 28.67 lakh shares through the offer for sale (OFS) route to raise the remaining Rs 35.43 crore.
Centrum Broking and PNB Investment Services are the investment bankers of the issue, while Kfin Technologies is the registrar to the offer.
Pranav Construction IPO: Subscription timeline
The IPO will close for public bidding on September 9, and its share allotment process is expected to be completed by September 10. Bidders are likely to be credited with their shares and refunds by September 11, and Pranav Construction is expected to list on the NSE and BSE on September 15.
Pranav Construction IPO: Brokerage commentary
Giving the issue a Subscribe – Long Term” rating, Anand Rathi Research Team in an IPO note said, “At the upper price band, the company is valued at 19.6x FY26 P/E and 12.7x FY26 EV/EBITDA, implying a post-issue market capitalization of Rs 1,396.5 crore.”
It added that the valuation stands as reasonable given the company’s strong market position in the redevelopment segment, asset-light model, execution track record, and healthy growth pipeline, adding that Mumbai presents the construction firm with growth opportunities.