New Delhi, April 1 – Mumbai-based real estate firm Runwal Enterprises has filed its Draft Red Herring Prospectus (DRHP) with SEBI, seeking approval to raise ₹1,000 crore through an Initial Public Offering (IPO).
Additionally, the company may conduct a pre-IPO placement of up to ₹200 crore. If executed, this would proportionally reduce the size of the fresh issue.
IPO Details: Fresh Issue Only, No OFS
The IPO will be entirely a fresh issue of shares, with no Offer-for-Sale (OFS) component. According to the DRHP submitted on Monday, the company has also proposed a reservation for eligible employees, along with a discount on share pricing for them.Additionally, the company may conduct a pre-IPO placement of up to ₹200 crore. If executed, this would proportionally reduce the size of the fresh issue.
Utilisation of IPO Proceeds
Runwal Enterprises plans to use the IPO proceeds as follows:- ₹200 crore for debt repayment
- ₹450 crore for investment in subsidiaries to support their debt obligations
- The remaining funds will be allocated toward future real estate acquisitions and general corporate purposes
Strong Financial Performance in FY24
Runwal Enterprises reported a significant surge in consolidated revenue and a return to profitability in the financial year 2023–24:- Revenue jumped from ₹229.49 crore in FY23 to ₹662.19 crore in FY24
- Net profit stood at ₹107.28 crore, compared to a loss in the previous fiscal
- Revenue: ₹270.52 crore
- Profit After Tax: ₹25.53 crore
Business Profile
Runwal Enterprises focuses on residential developments across affordable, mid-income, and luxury segments. The company also has a portfolio in commercial properties, retail malls, and educational infrastructure.IPO Lead Managers and Listing Plan
ICICI Securities and Jefferies India are acting as the book-running lead managers for the public issue. The company plans to list its equity shares on both BSE and NSE.
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