Mumbai-based real estate developer Runwal Developers, operating under the brand Runwal Realty, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹2,000 crore through an initial public offering (IPO). The proposed offering includes a fresh issue of ₹1,700 crore and an offer for sale (OFS) of ₹300 crore, through which the company’s promoter, Sandeep Runwal, intends to offload a portion of his stake. As per the DRHP, Sandeep Runwal currently holds a 72.76 per cent stake in the company.
The proceeds from the fresh issue are intended to be used primarily for the prepayment or repayment of certain outstanding borrowings, along with general corporate purposes. Runwal Developers’ net debt as of financial year 2025 stood at ₹3,160.52 crore, with a net debt-to-equity ratio of 0.98x.
The company’s financial performance in FY25 showed significant growth compared to FY24. Revenue from operations rose to ₹1,163.23 crore from ₹539.44 crore, reflecting a year-on-year increase of over 115 per cent. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for FY25 stood at ₹542.2 crore, marking nearly a 105 per cent growth compared to FY24. However, the adjusted EBITDA margin declined slightly from 49.02 per cent in FY24 to 46.61 per cent in FY25.
Sales revenue for FY25 reached ₹1,291.42 crore, up 11.3 per cent year-on-year, supported by the sale of 1.01 million square feet (msf) of property, compared to 0.96 msf in FY24. Gross collections for the year amounted to ₹1,507.51 crore, registering a 15.02 per cent increase over the previous year. Rental income also rose by 9.5 per cent, reaching ₹267.36 crore in FY25.
Runwal Developers has delivered over 50 projects across residential, commercial, and retail segments in the Mumbai Metropolitan Region (MMR) and Pune, including both redevelopment and greenfield developments. The company’s portfolio includes completed and ongoing projects aimed at catering to different market segments.
Analysts and sector observers note that the IPO reflects a broader trend of formalisation within the Indian real estate industry, which has historically been fragmented and largely unorganised. The listing of more real estate companies is seen as a move toward transparency and structured growth, potentially increasing investor confidence in the sector.
The proposed IPO by Runwal Developers comes at a time when the Indian primary market is witnessing heightened activity, with several companies from the real estate and other sectors filing for public offerings. Market participants view such listings as an opportunity to deepen capital markets and provide structured exit options for promoters while strengthening corporate balance sheets.
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