Real estate developer Runwal Enterprises files papers for ₹1,000 crore IPO

Mumbai-based real estate developer Runwal Enterprises has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of Rs 1,000 crore.

 

The entire issue comprises a fresh offer of equity shares with a face value of Rs 2 each. The company may also consider a pre-IPO placement of specified securities aggregating up to Rs 200 crore.

 

The net proceeds from the IPO will be used for repayment or prepayment, in full or in part, of certain borrowings availed by the company (Rs 200 crore), investment in its material subsidiaries—Susneh Infrapark and Runwal Residency—and in its subsidiary Evie Real Estate for repayment or prepayment of part or all of their borrowings (Rs 450 crore). Funds will also be used for acquiring future real estate projects and general corporate purposes.

 

 

As of January 31, 2025, the company and its subsidiaries had total outstanding borrowings of Rs 2,040.75 crore on a consolidated basis.

 

Runwal Enterprises’ restated consolidated revenue from operations in the financial year 2024 (FY24) stood at Rs 662.2 crore, more than doubling from the previous year. For the period ending September 30, 2024, in FY25, the revenue stood at Rs 270.52 crore.

 

The company reported a restated net profit of Rs 107.3 crore in FY24, compared to a loss of Rs 6.74 crore in FY23. For the six-month period ending September 30, 2024, the profit stood at Rs 25.53 crore.

 

So far, Runwal Enterprises has developed 11 million square feet (msf) of area across over 10,000 units. Its development pipeline includes 46 msf. The company undertakes residential projects in the affordable, mid-income, and luxury segments, along with commercial projects in the Mumbai Metropolitan Region (MMR).

 

In FY24, the company posted an earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin of 28.25 per cent and reported a net debt-to-equity ratio of 1.68.

 

The company sold 2,131 units in FY24, with a sales value of Rs 1,813.3 crore, compared to 2,570 units worth Rs 1,906.32 crore in FY23.

 

Subodh Runwal is the promoter of the company and holds 84.99 per cent of its equity share capital (74.09 per cent on a fully diluted basis).

 

ICICI Securities and Jefferies India are the book-running lead managers to the IPO.