Runwal Enterprises files papers to raise ₹1,000 crore via IPO

Real estate player Runwal Enterprises has filed draft papers with markets regulator SEBI seeking its approval to garner ₹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 ₹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 ₹200 crore will be used for the payment of debt, ₹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 ₹229.49 crore in fiscal 2023 to ₹662.19 crore in fiscal 2024. Also, the company had a turnaround from being loss-making in FY23 to making a profit of ₹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 ₹270.52 crore and ₹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.