Real estate developer Runwal Realty is aiming to raise up to ₹2,000 crore through an Initial Public Offer (IPO) of its equity shares and has submitted its draft red herring prospectus for this venture.
The capital raise will include a fresh issue up to ₹1,700 crore and an offer for sale of up to ₹300 crore.
The Mumbai-based company might also pursue a pre-IPO placement totaling up to ₹340 crore, which, if executed, will be capped at 20% of the fresh issue size, as stated in the draft prospectus filed on Wednesday.
Runwal Realty plans to use the proceeds from the fresh issue for partial or full prepayment and repayment of certain existing borrowings incurred by the company and its subsidiaries, as well as for general corporate purposes. These group entities include Runwal Construction, Aethon Developers, R Retail Ventures, R Mall Developers, and Histyle Retail. By the end of August, the company’s total outstanding debt was ₹3,304 crore, with interest rates varying from 7.10% to 12.91%, according to the draft prospectus.
Founded in 1978, Runwal Realty has successfully completed 35 projects covering 11.22 million sq ft across residential, commercial, and retail sectors. Currently, it is developing 9.54 million sq ft across 17 projects.
The upcoming project pipeline consists of 35.15 million sq ft across 24 projects in residential, commercial, hospitality, and retail categories, located in key areas of the Mumbai Metropolitan Region and Pune, ranging from ultra-luxury to mid-income segments.
Alongside its nearly fully occupied commercial properties and retail spaces, Runwal Realty is also expanding into hospitality with plans to develop three hotels in Worli, Thane, and Pune under management contracts.
ICICI Securities, BOB Capital Markets, JM Financial, and IIFL Capital are serving as the book running lead managers for this issue.
