Mumbai-based Runwal Enterprises files for ₹1,000 crore IPO

Mumbai-based real estate developer, Runwal Enterprises Limited, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,000 crore through an initial public offering.

The IPO consists entirely of a fresh issue with a face value of ₹2 per share and no offer-for-sale component. The company may consider a pre-IPO placement of up to ₹200 crore, which would reduce the fresh issue size accordingly.

According to the DRHP, proceeds will be utilized for repayment of borrowings (₹200 crore), investments in subsidiaries for their debt repayment (₹450 crore), funding acquisition of future real estate projects, and general corporate purposes.

Runwal Enterprises specializes in residential projects across affordable, mid-income, and luxury segments, along with commercial spaces and retail malls. The company ranks second in new launches and sales in Mumbai between January 2019 and September 2024, with market shares of 5.69 per cent and 5.25 per cent respectively.

The company’s financial performance shows significant improvement, with consolidated revenue increasing 188.55 per cent from ₹229.49 crore in fiscal 2023 to ₹662.19 crore in fiscal 2024. It turned profitable with ₹107.28 crore in FY24 after recording losses in FY23.

ICICI Securities and Jefferies India are serving as book-running lead managers for the IPO, which will allocate 75 per cent to qualified institutional buyers, up to 15 per cent to non-institutional bidders, and at least 10 per cent to retail investors. The shares will be listed on both BSE and NSE.