One of the major real estate developers, Runwal Enterprises, submitted its DRHP to SEBI with the goal of raising funds of ₹1000 crore via an IPO.
This IPO includes entirely a fresh issue of ₹1000 crore with no Offer-for-Sale component.
The company may opt for pre-IPO placement up to ₹200 crore. If they successfully plan to raise funds through a pre-IPO round, the amount of ₹200 crore will be reduced from the fresh issue.
In the book-building process, 75% of the shares will go to QIBs, 15% will be for the NIIs, and 10% of the shares will be reserved for the RIIs.
The reason behind raising funds via IPO is to handle the repayment and pre-payment of the existing debt, to handle the purchase of future real estate projects, and lastly, will use the funds for the company’s general corporate purposes.
For the company’s growth and development, ICICI Bank Limited, IndusInd Bank Limited, Kotak Mahindra Bank Limited, and Piramal Capital and Housing Finance Limited are selected as the financial bankers of the issue.
The book-running lead managers of the public issue are ICICI Securities Limited and Jefferies India Private Limited.
Established in 1978, Runwal Enterprises Limited is a real estate development firm involved in all types of real estate projects. The company is engaged in residential projects that serve affordable, mid-income, and luxury segments. They are also involved in the development of commercial spaces, shopping malls, and educational buildings.
As of now, Runwal Enterprises has established itself as the second-ranked real estate developer company by completing 15 projects, 25 ongoing projects, and 32 upcoming projects.
In FY24, the company generated a revenue of ₹662 crore from operations compared to FY23, where the company achieved a revenue of ₹229 crore, showcasing an almost 50% rise in revenue from last year.
Runwal Enterprises IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Runwal Enterprises Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹63.19 | ₹131.70 | ₹50.99 |
| 2023 | ₹234.66 | ₹252.71 | ₹6.74 |
| 2024 | ₹707.72 | ₹549.25 | ₹107.28 |
| September 2024 | ₹310.81 | ₹269.24 | ₹25.53 |
Runwal Enterprises IPO Valuation – FY2024
Runwal Enterprises IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹8.69 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 26.69% |
| Net Asset Value (NAV): | ₹32.55 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Oberoi Realty Limited | 52.99 | 30.78 | 13.92 | 380.76 | 4,495.79 Cr. |
| Macrotech Developers Limited | 16.03 | 75.66 | 8.87 | 175.67 | 10,316.10 Cr. |
| Godrej Properties Limited | 26.09 | 81.99 | 7.26 | 359.39 | 3,035.62 Cr. |
| Sunteck Realty Limited | 4.99 | 80.00 | 2.27 | 213.28 | 564.85 Cr. |
| Keystone Realtors Limited | 9.85 | 56.33 | 6.24 | 157.85 | 2,222.25 Cr. |
| Prestige Estates Projects Limited | 34.28 | 35.67 | 12.17 | 281.61 | 7,877.10 Cr. |
Objects of the Issue
- Repayment/ pre-payment, in full or in part, of certain outstanding borrowings availed by our Company;
- Investment in our Material Subsidiaries namely Susneh Infrapark Private Limited and Runwal Residency Private Limited and our Subsidiary namely Evie Real Estate Private Limited, for repayment/ pre-payment, in full or in part, of all or a portion of certain of their outstanding borrowings; and
- Funding acquisitions of future real estate projects and general corporate purposes.
IPO Lead Managers aka Merchant Bankers
- ICICI Securities Limited
- Jefferies India Private Limited
