Runwal Enterprises, a real estate developer based in Mumbai and promoted by Subodh Runwal, has received approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) valued at ₹1,000 crore.
The proposed IPO will consist of a fresh issue of equity shares with a face value of ₹2 each, with no offer-for-sale component included.
The company stated that the proceeds from the IPO will be allocated to support its expansion plans and enhance its balance sheet. Furthermore, there will be a reservation of shares for eligible employees, allowing them to subscribe at a discounted rate within the employee quota.
The issue will be conducted through a book-building process. In line with SEBI regulations, a minimum of 75% of the net issue is designated for qualified institutional buyers, not exceeding 15% for non-institutional bidders, and a minimum of 10% reserved for retail investors. The company has also provisioned for a pre-IPO placement of up to ₹200 crore, which may adjust the size of the fresh issue accordingly.
Founded by Subodh Runwal, the company boasts over four decades of experience in real estate, transitioning from affordable and mid-income housing to luxury developments. Recently, it has expanded into high-end segments and premium areas such as Mahalaxmi and Bandra. In addition, Runwal Enterprises operates retail malls, commercial spaces, and educational buildings, cementing its status as a diversified player within Mumbai’s real estate landscape.
From January 2019 to September 2024, Runwal Enterprises ranked second in Mumbai for both new residential launches and sales, with market shares of 5.69% and 5.25%, respectively. In the Kalyan-Dombivli submarket, the developer dominated with a 17.63% share of total sales and 20.84% of new launches.
As of September 30, 2024, the company’s portfolio encompassed 15 completed projects, 25 ongoing projects, and 32 upcoming developments. Its residential portfolio spans a total Developable Area of 48.71 million square feet. The DRHP reveals its ambition to be a fully integrated developer in Mumbai, covering affordable, mid-income, and luxury residential projects along with commercial and mixed-use communities featuring amenities and iconic landmarks.
The latest financial data indicates robust growth. For FY24, Runwal Enterprises reported revenues of ₹662.19 crore, marking a 188.55% increase from ₹229.49 crore in FY23. Profit after tax for FY24 was ₹107.28 crore, with revenues of ₹270.52 crore and a profit of ₹25.53 crore for the first six months ending September 30, 2024.
The IPO will be managed by ICICI Securities Limited and Jefferies India Private Limited as the lead managers, while MUFG Intime India Private Limited will serve as the registrar. The company aims to list its equity shares on both the BSE and NSE.
With this approval, Runwal Enterprises adds to the list of Mumbai-based developers seeking to attract capital amid robust housing demand and increasing investor interest in the real estate sector. Market analysts predict that the IPO will gauge investor appetite for real estate offerings, especially as property sales in Mumbai reach unprecedented levels, particularly in the mid-income and luxury segments.
