Realty firm Runwal Enterprises files papers to raise up to Rs 1,000 crore via IPO

Runwal Enterprises files DRHP to raise Rs 1,000 crore via IPO

Real estate firm Runwal Enterprises Limited has filed Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise up to Rs 1,000 crore. The IPO will include an Employee Reservation Portion and a Net Issue for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs). The net proceeds from the IPO will be used for the repayment of borrowings, investment in subsidiaries for repayment of their borrowings, funding the acquisition of future real estate projects, and general corporate purposes.

The IPO is being managed by ICICI Securities Limited and Jefferies India Private Limited as the Book Running Lead Managers (BRLMs). The company has engaged various financial partners, including ICICI Bank Limited, IndusInd Bank Limited, Kotak Mahindra Bank Limited, and Piramal Capital and Housing Finance Limited, to support its growth and development.

The primary objectives of the IPO are to utilise the net proceeds for (i) the repayment or prepayment, in full or part, of certain outstanding borrowings availed by the company; (ii) investment in Evie Real Estate Private Limited, Susneh Infrapark Private Limited, and Runwal Residency Limited, the company's subsidiaries, for repayment and/or prepayment, in full or part, of certain borrowings availed by these subsidiaries; and (iii) funding the acquisition of future real estate projects and general corporate purposes.

Runwal Enterprises Limited, formerly known as Runwal Enterprises Private Limited and Runwal Apartments Private Limited, specialises in residential projects across affordable, mid-income, and luxury segments, as well as commercial spaces, retail malls, and educational buildings. The company has a diverse portfolio with 15 completed projects, 25 ongoing projects, and 32 upcoming projects, primarily located in Mumbai. The company reported revenue from operations of Rs 270 crore and a net profit of Rs 25.5 crore for the six months ended September 30, 2024. As of September 30, 2024, the company had total borrowings of Rs 1,498 crore and a net worth of Rs 435 crore.