Runwal Developers files draft papers with Sebi to raise ₹2,000 cr via IPO

Proceeds from the fresh issue will be used for the prepayment or repayment of certain outstanding borrowings and for general corporate purposes

Mumbai-based real estate developer Runwal Developers (which operates under the brand Runwal Realty) has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise ₹2,000 crore via an initial public offering (IPO).

 

The offer comprises a fresh issue of ₹1,700 crore and an offer for sale (OFS) component of ₹300 crore.

 

The company’s promoter, Sandeep Runwal, will be offloading some of his stake via the proposed OFS. As of the date of the DRHP, he held a 72.76 per cent stake in the company.

 

The company aims to utilise the proceeds of the fresh issue for the prepayment/repayment of certain outstanding borrowings and general corporate purposes. The company’s net debt as of financial year 2025 (FY25) stood at ₹3,160.52 crore, while its net debt to equity ratio was 0.98x.

 

Runwal’s revenue from operations in FY25 stood at ₹1,163.23 crore against ₹539.44 crore in FY24.

 

The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) for FY25 were ₹542.2 crore, up by almost 105 per cent year on year (Y-o-Y). Its adjusted Ebitda margin, however, declined from 49.02 per cent in FY24 to 46.61 per cent in FY25.

 

The company’s sales in FY25 stood at ₹1,291.42 crore, up by 11.3 per cent Y-o-Y. It sold an area of 1.01 million square feet (msf) in FY25, against the area sold of 0.96 msf in FY24. The company’s gross collections in FY25 stood at ₹1507.51 crore, up by about 15.02 per cent Y-o-Y. Its rental income came in at ₹267.36 crore in FY25, up by 9.5 per cent Y-o-Y.

 

So far, the company has delivered over 50 projects, including redevelopment and greenfield developments, across residential, commercial, and retail segments in the Mumbai Metropolitan Region (MMR) and Pune.

 

Sector watchers noted that listing of a larger number of companies in the real estate sector indicates formalistion of the industry which has for long been an unorganised segment of industry.