Runwal Enterprises Files DRHP for Rs. 1,000 Crore IPO, Plans Pre-IPO Placement

Runwal Enterprises, a prominent real estate developer based in Mumbai, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs. 1,000 crore through an initial public offering (IPO). The offering will consist of a fresh issue of equity shares, with no offer-for-sale component. The company may also consider a pre-IPO placement of securities, totaling up to Rs. 200 crore, which would not exceed 20% of the size of the fresh issue, thereby potentially reducing the size of the fresh issue.

IPO Structure and Use of Proceeds

The IPO will be conducted through the book-building process, and the company has outlined specific allocation plans for different types of investors. At least 75% of the net issue will be reserved for qualified institutional buyers (QIBs), while non-institutional bidders will be allocated no more than 15% of the offer. The remaining 10% will be set aside for retail individual bidders.

The fresh issue proceeds will be primarily used for the following purposes:

• Rs. 200 crore for the repayment or prepayment of outstanding borrowings.

• Rs. 450 crore for investment in key subsidiaries, including Susneh Infrapark, Runwal Residency, and Evie Real Estate, as well as for repayment of their borrowings.

• Funds will also be allocated for acquiring new real estate projects and for general corporate purposes.

Financial Performance and Growth

Runwal Enterprises has demonstrated strong growth in its financials. The company’s restated consolidated revenue from operations surged by 188.55%, rising from Rs. 229.49 crore in FY23 to Rs. 662.19 crore in FY24. In a significant turnaround, the company moved from a loss in FY23 to a profit of Rs. 107.28 crore in FY24. For the six months ending September 30, 2024, the company reported a revenue of Rs. 270.52 crore and a profit after tax of Rs. 25.53