Sanghvi Housing and Infrastructure Limited filed a draft red herring prospectus (DRHP) with SEBI on October 5, 2026. The draft proposes a fresh issue of up to 60 lakh equity shares, but it does not yet state the rupee issue size, price band or IPO dates. A DRHP filing is not SEBI approval, and the final terms and timetable remain to be announced.
What is the status of the Sanghvi Housing IPO?
SEBI’s public-issues record lists the company’s DRHP as filed on October 5, 2026. The linked draft abridged prospectus is dated September 29, 2026, and says the document will be updated upon filing with the Registrar of Companies. It is a draft offer document, not a finalized IPO timetable or confirmation that the issue will proceed on any particular schedule.
The issuer’s draft states: “The Equity Shares in the Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI guarantee the accuracy or adequacy of the contents of this Draft Red Herring Prospectus.” Investors should read the full prospectus and later official notices as they become available.
What does Sanghvi Housing and Infrastructure do?
The company describes itself as a real estate developer operating across Mumbai Metropolitan Region (MMR) and Thane district in Maharashtra, with a footprint concentrated in MMR, particularly Mumbai’s western suburbs. Its core activity is redevelopment of existing residential properties and housing societies, including rehabilitation premises for eligible existing occupants. It also undertakes selective greenfield development on acquired land.
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The draft presents redevelopment experience and local market knowledge as company strengths. Its stated strategies include converting development rights into project launches, increasing the scale of individual projects, and expanding in premium and ultra-luxury MMR segments. These are the issuer’s stated positioning and plans, not independently verified measures of performance.
What are the proposed issue size and IPO dates?
The draft proposes a 100% book-built fresh issue of up to 60,00,000 equity shares, each with a face value of ₹10. It does not include an offer for sale, so the proposed offering is entirely new shares rather than shares being sold by existing shareholders.
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| Term | What the draft says |
|---|---|
| Issue type | 100% book-built fresh issue |
| Shares offered | Up to 60,00,000 |
| Face value | ₹10 per share |
| Total rupee issue size | Not stated; the amount is a placeholder |
| Price band | Not stated in the draft summary |
| Bid opening and closing dates | Not stated in the draft summary |
| Proposed listing | BSE and NSE |
| Designated stock exchange | Not stated; the field is a placeholder |
Because the price band and number of shares are not yet accompanied by a final price, the rupee issue size cannot be determined from this draft. Investors looking for the opening date, closing date or final issue size will need to check subsequent official filings and exchange notices.
How does the company propose to use the proceeds?
The draft earmarks ₹16,477.65 lakh of net proceeds toward part-funding development and construction costs for three ongoing projects: Sanghvi Horizon, Sanghvi Boulevard and Sanghvi Sapphire. The funding is to be routed through subsidiaries and associates.
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Funding future project acquisitions and general corporate purposes are also listed as uses. The draft says the amounts for those purposes will be finalized after the issue price is determined. The stated project-cost allocation is therefore only one part of the proposed proceeds plan.
What do the draft financials show?
The draft’s selected restated consolidated figures show higher revenue and profit in each of the three reported fiscal years. They also show negative net cash from operating activities throughout the period and rising total borrowings.
| Fiscal year ended March 31 | Revenue from operations (₹ lakh) | EBITDA (₹ lakh) | Profit for year (₹ lakh) | Total borrowings (₹ lakh) | Net operating cash flow (₹ lakh) |
|---|---|---|---|---|---|
| 2024 | 6,264.44 | 1,288.16 | 760.45 | 10,283.12 | (315.95) |
| 2025 | 7,558.75 | 2,957.03 | 2,080.93 | 10,821.24 | (2,443.37) |
| 2026 | 10,183.86 | 3,586.77 | 2,626.36 | 11,524.75 | (3,726.06) |
For FY2026, the company’s KPI table reports revenue growth of 34.73%, EBITDA margin of 35.22%, PAT margin of 25.79%, debt-to-equity of 1.61 and debt-to-EBITDA of 3.21. It also reports 11 projects under development as of March 31, 2026. These are issuer-reported draft figures; investors should check them against the full DRHP and its restated financial statements.
Why cash flow deserves attention alongside profit
Profit and operating cash flow measure different things. The reported profits rose, but the company recorded an operating cash outflow of ₹3,726.06 lakh in FY2026, compared with outflows of ₹2,443.37 lakh in FY2025 and ₹315.95 lakh in FY2024. Borrowings increased over the same three-year period, reaching ₹11,524.75 lakh in FY2026. The draft notes that spending in redevelopment may come before sale proceeds are received, which helps explain why cash generation is important to examine alongside earnings.
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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesWhat risks does the DRHP identify?
The draft’s risk disclosures describe exposures tied to both the company’s geography and the way redevelopment projects are financed and delivered.
- Geographic and project-sourcing concentration: Operations are concentrated in MMR and Thane, and the business depends on winning redevelopment projects from housing societies.
- Execution, time and cost: Redevelopment projects have long gestation periods and may face cost overruns or delays. The company may also fail to meet RERA completion timelines.
- Sales and inventory: The company depends on timely sales of units. As of March 31, 2026, it reported 56 unsold units in completed projects and 434 in ongoing projects. Those counts do not establish how quickly units will sell or the prices they may fetch.
- Funding and debt: The draft lists indebtedness, negative operating cash flows, and unsecured loans that lenders may recall. It also warns that lenders could enforce collateral securing borrowings.
- Group-entity reliance: The proposed proceeds for three named projects are routed through subsidiaries and associates, and the risk disclosures identify reliance on these entities as an exposure.
The abridged litigation table summarizes proceedings involving the company, promoters, directors and subsidiaries, with amounts shown for some categories. It is not a case-by-case account of the nature or status of each matter; investors should consult the full DRHP’s litigation section for those details.
What should investors check when final IPO terms are published?
The draft does not yet provide the final price or valuation terms needed to assess the offer against earnings or book value. Once the price band and final issue details are available, investors can compare them with the company’s disclosed financials while also examining its cash generation, debt, project execution record, unsold inventory, completion timelines and proposed use of proceeds.
For the current status and material terms, rely on subsequent official filings and exchange notices rather than treating the draft as a completed offer. Neither the filing nor the draft’s financial and operating disclosures establish future returns.
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