Curation Team
NEW DELHI: Mumbai-based Runwal Enterprises has filed its draft red herring prospectus (DRHP) with securities and exchange board of India (SEBI) to raise ₹1,000 crore through an initial public offering (IPO).
The IPO, with a face value of ₹2 each, is a fresh issue of ₹1,000 crore with no offer-for-sale component.
The company may consider a pre-IPO placement of specified securities, aggregating to ₹200 crore as pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The issue is being made through the book-building process, wherein at least 75% of the net issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 10% of the offer shall be available for allocation to retail individual bidders.
The proceeds from its fresh issuance to the extent of ₹200 crore for repayment or prepayment, in full or part, of certain outstanding borrowings availed by the company; ₹450 crore for investment in its material subsidiaries namely Susneh Infrapark and Runwal Residency and its subsidiary namely Evie Real Estate, for repayment/ pre-payment, in full or in part, of all or a portion of certain of their outstanding borrowings; funding acquisition of future real estate projects and general corporate purposes.
Runwal Enterprises’ residential portfolio consists of an aggregate developable area and estimated developable area of 48.71 million sq ft. The company’s restated consolidated revenue from operations increased by 188.55% from ₹229.49 crore in FY23 to ₹662.19 crore for FY24. The company had a turnaround from being loss-making in FY23 to a profit of Rs 107.28 crore in FY24.
For the six months ended September 30, 2024, restated consolidated revenue from operations and profit after tax stood at ₹270.52 crore and ₹25.53 crore respectively.
ICICI Securities and Jefferies India are the book-running lead managers and MUFG Intime India is the registrar of the offer.
