Runwal Enterprises Eyes Rs 1,000 Cr Via IPO

New Delhi: Real estate player Runwal Enterprises has filed draft papers with markets regulator Sebi seeking its approval to garner Rs 1,000 crore through an Initial Public Offering (IPO).The IPO is completely a fresh issue of shares with no Offer-For-Sale (OFS) component, according to the Draft Red Herring Prospectus (DRHP) filed on Monday. The issue includes a reservation for a subscription by eligible employees and a discount is being offered to such employees. The company may consider raising Rs 200 crore in a pre-IPO placement round. If such placement is completed, the amount raised through the fresh issue will be reduced. Proceeds from the fresh issue to the tune of Rs 200 crore will be used for the payment of debt, Rs 450 crore for investments in subsidiaries for their debt repayment, and a portion will be utilised for funding the acquisition of future real estate projects and general corporate purposes.

The Mumbai-based Runwal Enterprises specialises in residential projects catering to affordable, mid-income, and luxury segments, as well as commercial spaces, retail malls, and educational buildings. Runwal Enterprises' consolidated revenue from operations increased from Rs 229.49 crore in fiscal 2023 to Rs 662.19 crore for the fiscal 2024. Also, the company had a turnaround from being loss-making in FY23 to making a profit of Rs 107.28 crore in FY24. For the six months ended September 30, 2024, the company's consolidated revenue from operations and profit after tax stood at Rs 270.52 crore and Rs 25.53 crore, respectively. ICICI Securities and Jefferies India are the book-running lead managers to the public offer. The equity shares are proposed to be listed on BSE and NSE.