Mumbai: Pranav Constructions Ltd has highlighted negative operating cash flows, delays in redevelopment projects and litigation involving its principal promoter among key risks ahead of its initial public offering (IPO).
The real estate developer’s IPO is scheduled to open for subscription on September 7. The risks have been disclosed in its Red Herring Prospectus (RHP) filed with market regulator SEBI.
Two Projects Face Delays
According to the RHP, two redevelopment projects — Nirmal Bhavan CHSL and Rajnigandha CHSL — have faced significant and prolonged delays because of legal disputes, regulatory hurdles and procedural issues.
Pranav Constructions was awarded the Nirmal Bhavan project in 2016 and Rajnigandha project in 2018.
Pending approvals have already affected execution timelines, while further delays could hurt the viability of these projects.
The company said it has limited control over the timing of judicial proceedings and regulatory approvals, making it difficult to estimate how long the delays could continue.
Negative Operating Cash Flow
Pranav Constructions has also reported negative operating cash flows in the last two financial years.
Its operating cash flow stood at negative Rs 41.19 crore in FY26 and negative Rs 92.60 crore in FY25. This compares with a positive operating cash flow of Rs 5.46 crore in FY24.
Negative operating cash flow could remain an important factor for investors assessing the company’s financial position ahead of the IPO.
Litigation Involving Promoter
The RHP also disclosed ongoing litigation involving principal promoter Pranav Kiran Ashar.
Vaisshali Pranav Ashar filed a case against him in June 2024 before a Metropolitan Magistrate Court in Mumbai under the Protection of Women from Domestic Violence Act, 2005.
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The application seeks protection, residence and custody orders along with compensation and monetary relief totalling Rs 10.21 crore. The case remains pending.
Pranav Constructions further said strained personal relations between its promoters have restricted its ability to obtain certain information concerning Vaisshali Pranav Ashar and associated entities required under SEBI’s disclosure regulations.
