Runwal Realty, a prominent Mumbai-based real estate developer, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹2,000 crore through an Initial Public Offering (IPO). The proposed IPO includes a fresh issue of ₹1,700 crore and an offer-for-sale (OFS) of ₹300 crore by the promoter, Sandeep Runwal, who currently holds a 72.76% stake in the company. The funds raised will primarily be used for repaying or prepaying outstanding borrowings and for general corporate purposes.
Details of the IPO and Runwal Realty’s Financials
Runwal Realty’s fresh issue proceeds, amounting to ₹1,700 crore, will be utilized to reduce the company’s debt, which stood at ₹3,304 crore as of August 2025, and to fund its ongoing and future corporate activities. The OFS portion of ₹300 crore will see the promoter selling a part of his stake to the public. The company also mentioned the possibility of a pre-IPO placement amounting to up to ₹340 crore, which, if executed, would reduce the size of the fresh issue.
Financially, Runwal Realty showed strong growth with revenues from operations increasing to ₹1,163 crore in FY25, nearly doubling from ₹539 crore in FY24. Its adjusted EBITDA for FY25 was ₹542 crore, marking a 105% increase year-on-year, although its EBITDA margin contracted slightly. The company’s sales and gross collection figures in FY25 also showed healthy year-on-year growth.
Company Background and Project Portfolio
Established in 1978, Runwal Realty has delivered over 50 projects, including redevelopment and greenfield developments, across residential, commercial, and retail segments. Its footprint primarily spans the Mumbai Metropolitan Region (MMR) and Pune with a diverse project pipeline. As of now, the company has 17 ongoing projects covering 9.54 million square feet and 24 upcoming projects with a combined area of 35.15 million square feet across various real estate segments including residential, commercial, hospitality, and retail.
The company intends to expand its operations further into the hospitality sector, with plans to develop three hotels under management contracts in prime locations like Worli, Thane, and Pune. This expansion complements its nearly fully occupied commercial office and retail property portfolio, pointing towards its strategic growth ambitions.
Significance of the IPO in the Real Estate Sector
The Runwal Realty IPO is a notable development in the Indian real estate sector, which has traditionally been less formalized. The listing of more real estate companies like Runwal Realty indicates increasing formalization and investor interest in this sector. This IPO is expected to provide the company with enhanced capital resources to reduce leverage and fuel growth while providing a credible public market presence.
In conclusion, Runwal Realty’s filing of the draft red herring prospectus is a critical step towards raising substantial funds to consolidate its leadership in Mumbai and Pune’s real estate markets and support future expansion, including new project development and diversification into hospitality. This move also offers investors an opportunity to participate in one of the region’s prominent real estate players amid growth and formalization trends in the industry.
