Runwal Developers Aims to Raise Rs 2,000 Crore in IPO to Manage Debt
The Indian IPO market is abuzz with activity, as several real estate developers, including Chennai-based Casagrand and Kalpatru Ltd, are lining up for listings. Among them, Mumbai-based Runwal Developers Ltd has taken a significant step by filing a draft red herring prospectus (DRHP) with SEBI to raise a substantial amount through an Initial Public Offering (IPO).
Runwal Developers, led by Chairman Sandeep Subhash Runwal, aims to raise Rs 2,000 crore ($225 million) via the IPO. The company has appointed ICICI Securities, BOB Capital Markets, IIFL Securities, and JM Financial as book running lead managers for the offering. As per the DRHP, the company has a total debt of around Rs 3,300 crore, indicating a need for funds to manage its financial obligations.
The company has a robust project portfolio, with 17 ongoing and 24 upcoming projects, and 35 projects already delivered across residential, commercial, and retail segments. Runwal Developers plans to raise Rs 1,700 crore through a fresh share sale and the rest via an offer for sale (OFS) by its promoter. The funds will primarily be used to clear debt, with the remaining amount allocated for general corporate purposes.
Notably, another faction of the Runwal family, Runwal Enterprises, also filed for an IPO in April this year, with plans to raise Rs 1,000 crore. HDFC Capital Fund holds a 12.83% stake in Runwal Enterprises at the parent level, which was recently acquired by Anil Parab. Adding to the fundraising efforts, Runwal Developers is also likely to raise a pre-IPO round of Rs 340 crore.
Runwal Developers' IPO is set to be a significant event in the Indian real estate sector, with the company aiming to raise Rs 2,000 crore to manage its debt and fund general corporate purposes. The successful completion of the IPO will not only help the company strengthen its financial position but also provide investors with an opportunity to participate in the growth story of one of India's leading real estate developers.
