Runwal Developers Files for Rs 2,000 Crore IPO, Aims to Reduce Debt
Mumbai-based Runwal Developers has filed draft papers with SEBI for an IPO to raise Rs 2,000 crore. The IPO includes a fresh issue of Rs 1,700 crore and an OFS of Rs 300 crore. Rs 1,300 crore will be used for debt repayment. The company, founded in 1988, has 35 completed projects, 17 ongoing, and 24 upcoming projects in Mumbai and Pune. Runwal reported revenue of Rs 1,163 crore and net profit of Rs 137.40 crore. ICICI Securities, BOB Capital Markets, IIFL Capital Services, and JM Financial are managing the IPO.
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Mumbai-based real estate developer Runwal Developers has taken a significant step towards going public by filing draft papers with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The company aims to raise Rs 2,000 crore through this offering, marking a notable event in the real estate sector.
IPO Structure and Fundraising Details
The proposed IPO comprises two components:
- A fresh issue of shares worth Rs 1,700 crore
- An offer for sale (OFS) of Rs 300 crore by promoter Sandeep Subhash Runwal
Runwal Developers has outlined its intentions for the funds raised through the fresh issue:
- Rs 1,300 crore will be allocated for debt repayment
- The remaining amount will be used for general corporate purposes
The company is considering a pre-IPO placement of up to Rs 340 crore. If this placement occurs, it would reduce the size of the fresh issue accordingly.
Company Profile and Track Record
Founded in 1988, Runwal Developers has established itself as a prominent player in the real estate market, focusing on:
- Residential projects
- Commercial developments
- Retail projects
The company's operations are primarily concentrated in the Mumbai Metropolitan Region and Pune. As of June 30, Runwal Developers' portfolio includes:
- 35 completed projects
- 17 ongoing projects
- 24 upcoming projects
This diverse project mix demonstrates the company's active presence and future growth potential in the real estate sector.
Financial Performance
Runwal Developers reported the following financial results:
| Metric | Amount (in crore) |
|---|---|
| Revenue | 1163.00 |
| Net profit | 137.40 |
These figures provide insight into the company's financial health and profitability, which potential investors will likely scrutinize as part of their assessment of the IPO.
IPO Management
The book-running lead managers for Runwal Developers' IPO are:
- ICICI Securities
- BOB Capital Markets
- IIFL Capital Services
- JM Financial
These experienced financial institutions will play a crucial role in managing the IPO process and engaging with potential investors.
As Runwal Developers moves forward with its IPO plans, market observers and potential investors will be keenly watching for further developments, including the release of the red herring prospectus and the eventual pricing of the issue. The success of this IPO could have implications not only for Runwal Developers but also for the broader real estate sector in India.
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