Runwal Realty Aims for ₹2,000 Crore IPO to Boost Growth

Mumbai-based real estate developer Runwal Realty is gearing up to raise up to ₹2,000 crore through an initial public offer (IPO). The company has filed its draft red herring prospectus to kickstart this significant financial move. The total fund-raising will consist of a fresh issue size worth up to ₹1,700 crore and an offer-for-sale worth up to ₹300 crore.

The Mumbai-based developer is also considering a pre-IPO placement, which could aggregate up to ₹340 crore. If undertaken, this pre-IPO placement will not exceed 20% of the fresh issue size, as stated in the company's draft red herring prospectus filed on Wednesday.

Runwal Realty plans to utilize the net proceeds from the fresh issue towards the part or full prepayment and repayment of certain outstanding borrowings availed by the company and its subsidiaries. The funds will also be used for general corporate purposes. The group entities that will benefit from this include Runwal Construction, Aethon Developers, R Retail Ventures, R Mall Developers, and Histyle Retail. As of August end, the company's outstanding debt stood at ₹3,304 crore, with interest rates ranging from 7.10% to 12.91%.

Founded in 1978, Runwal Realty has completed 35 projects spread over 11.22 million square feet across residential, commercial, and retail segments. Currently, the company is developing 9.54 million square feet across 17 ongoing projects. The upcoming project pipeline is robust, with 35.15 million square feet of space under 24 upcoming projects in residential, commercial, hospitality, and retail segments. These projects are spread across key locations in the Mumbai Metropolitan Region and Pune property markets, catering to ultra-luxury to mid-income categories.

In addition to its nearly fully occupied commercial office and retail properties, Runwal Realty is expanding into the hospitality segment. The company is planning to develop three upcoming hotels in Worli, Thane, and Pune under management contracts. This strategic move is aimed at diversifying its portfolio and tapping into the growing hospitality market.

Runwal Realty's IPO is a significant step towards solidifying its position in the real estate market and fueling its expansion plans. The company's strong track record and diverse project portfolio position it well to attract investor interest and achieve its financial goals.