Runwal Enterprises Gets SEBI Nod for Rs.1,000 Crore IPO

Introduction

Mumbai-based developer Runwal Enterprises has secured approval from the Securities and Exchange Board of India (SEBI) to raise Rs.1,000 crore through an initial public offering (IPO). The issue will be a fresh equity share sale, with no offer-for-sale component, aimed at supporting the company’s expansion and strengthening its balance sheet.

Key Highlights

• IPO Structure: Fresh issue of equity shares, face value Rs.2 each. No OFS component.

• Allocation: 75% reserved for Qualified Institutional Buyers, 15% for non-institutional bidders, and 10% for retail investors. Employee quota will include a discount.

• Pre-IPO Placement: Provision for raising up to Rs.200 crore before the IPO, with adjustment in fresh issue size if exercised.

• Company Portfolio:

  • 15 completed projects, 25 ongoing, and 32 upcoming as of Sept 2024.

  • 48.71 million sq. ft. total developable and estimated developable area.

  • Diversified presence across residential, commercial, retail, and educational segments.

• Market Share:

  • Ranked second in Mumbai (2019–2024) with ~5.7% share in launches and ~5.3% in sales.

  • Held dominant share in Kalyan-Dombivli with ~18% of sales and ~21% of new launches.

• Financial Performance:

  • FY24 revenues: ?662.19 crore, up 188% YoY.

  • FY24 PAT: ?107.28 crore.

  • H1 FY25 revenues: ?270.52 crore; PAT: ?25.53 crore.

• Listing & Management: To be listed on BSE and NSE. Managed by ICICI Securities and Jefferies India, with MUFG Intime India as registrar.

How Runwal Compares with Recent Real Estate IPOs

In the past year, several Mumbai-based real estate developers have tapped capital markets. Here’s a quick comparison of their IPO listings and performance:

This table highlights the strong appetite for real estate equities, with most listings sustaining or growing above their issue price, despite market fluctuations.

Expert Opinion – Sandeep Sadh, Mumbai Property Exchange

“The SEBI nod for Runwal Enterprises’ IPO highlights the growing confidence in Mumbai’s real estate sector. Developers with diversified portfolios and strong track records are increasingly turning to capital markets for growth capital. Runwal’s presence across affordable, mid-income, and luxury housing, along with its expansion into commercial and retail spaces, positions it strongly.

A listed company also comes under the scrutiny of SEBI and multiple government bodies, which ensures stronger compliance and transparency. For homebuyers, this means higher confidence, as the developer is accountable not only to customers but also to public investors.”

Closing Note

With this IPO clearance, Runwal Enterprises joins a growing league of Mumbai developers tapping capital markets amid record housing demand. For homebuyers, investors, and market watchers, the listing will provide fresh insights into the city’s real estate growth trajectory.