Runwal Developers Aims to Raise ₹2000 Cr through IPO with Sebi Filing

Mumbai-based real estate developer Runwal Developers, which operates under the brand Runwal Realty, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise ₹2,000 crore through an initial public offering (IPO).

The offer comprises a fresh issue of ₹1,700 crore and an offer for sale (OFS) component of ₹300 crore. The company’s promoter, Sandeep Runwal, will be offloading some of his stake via the proposed OFS. As of the date of the DRHP, he held a 72.76 per cent stake in the company.

The company aims to utilise the proceeds of the fresh issue for the prepayment or repayment of certain outstanding borrowings and general corporate purposes. The company’s net debt as of financial year 2025 (FY25) stood at ₹3,160.52 crore, while its net debt to equity ratio was 0.98x.

Runwal’s revenue from operations in FY25 stood at ₹1,163.23 crore, a significant increase from ₹539.44 crore in FY24. The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) for FY25 were ₹542.2 crore, up by almost 105 per cent year on year (Y-o-Y). However, its adjusted Ebitda margin declined from 49.02 per cent in FY24 to 46.61 per cent in FY25.

The company’s sales in FY25 stood at ₹1,291.42 crore, up by 11.3 per cent Y-o-Y. It sold an area of 1.01 million square feet (msf) in FY25, compared to 0.96 msf in FY24. The company’s gross collections in FY25 were ₹1507.51 crore, up by about 15.02 per cent Y-o-Y. Its rental income came in at ₹267.36 crore in FY25, up by 9.5 per cent Y-o-Y.

So far, the company has delivered over 50 projects, including redevelopment and greenfield developments, across residential, commercial, and retail segments in the Mumbai Metropolitan Region (MMR) and Pune. Sector watchers noted that the listing of a larger number of companies in the real estate sector indicates the formalisation of an industry that has long been unorganised.