Mumbai-based real estate developer Runwal Enterprises Limited has taken a major step toward listing on the stock exchanges by filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company aims to raise ₹1,000 crore through a fresh issue of equity shares.
IPO Structure and Use of Proceeds
The IPO will be a fresh issue with a face value of ₹2 per share and will not include any offer-for-sale component. Runwal may also consider a pre-IPO placement of up to ₹200 crore, which would reduce the size of the public issue accordingly.
The book-building process will allocate at least 75% of the issue to qualified institutional buyers (QIBs), 15% to non-institutional investors, and 10% to retail individual investors. The funds raised will be utilised for repayment of borrowings, investments in subsidiaries, acquisitions, and general corporate purposes.
Business Overview
Runwal Enterprises operates across Mumbai’s affordable, mid-income, and luxury residential segments, along with commercial developments. Between January 2019 and September 2024, the company ranked second in the city for both new launches and sales, with market shares of 5.69% and 5.25%, respectively.
The company holds a dominant position in the Kalyan-Dombivli submarket and has a portfolio spanning 48.71 million square feet of completed, ongoing, and upcoming projects.
Financial Performance
Driven by strong performance in its Runwal Gardens project, the company’s consolidated revenue grew by 188.55% to ₹662.19 crore in FY24. Runwal reported a net profit of ₹107.28 crore for the year, marking a turnaround from a loss in FY23.
Conclusion
With a strong presence in Mumbai’s residential real estate market and a growing project portfolio, Runwal Enterprises is positioning itself for future expansion through this IPO. The company plans to list its equity shares on both the BSE and NSE following regulatory approvals, as it seeks to strengthen its financial position and expand operations through the proposed capital raise.
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