IPO Details
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Schedule of Runwal Enterprises IPO
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Allotment of bids
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About Runwal Enterprises IPO
The IPO of Runwal Enterprises Ltd comprises a fresh issue of equity shares of face value of ₹ 2 each aggregating up to ₹1000 crores. It has no offer for sale and is a 100% book-built issue. The lot size and the price range are TBA.
The listing dates are TBA. The allotment dates are TBA. The credit of shares to the demat account and the inititation of refunds are TBA.
Objectives of Runwal Enterprises IPO
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Repayment/ pre-payment, in full or in part, of certain outstanding borrowings availed by the company
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Investment in its material subsidiaries namely Susneh Infrapark Private Ltd and Runwal Residency Private Ltd and its subsidiary namely Evie Real Estate Private Ltd, for repayment/ pre-payment, in full or in part, of all or a portion of certain of their outstanding borrowings
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Funding acquisitions of future real estate projects and general corporate purposes
Runwal Enterprises IPO Valuation
Runwal Enterprises IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not less than 75% of the issue size |
Non-institutional Bidders | Not more than 15% of the issue |
Retail Individual Bidders | Not more than 10% of the issue |
Industry Outlook
India’s real estate sector has been a cornerstone of the economy, consistently contributing over 7% to the overall Gross Value Added (GVA) in the past decade. The current residential real estate cycle is characterised by a solidifying foundation, driven by a strong affinity for homeownership among prospective buyers.
Despite the general elections taking place in Q2 CY 2024, the market demonstrated a strong undercurrent of demand, with impressive sales volumes achieved in the first nine months of the year. It’s anticipated that this positive sentiment will continue, resulting in sustained momentum in sales. With the fundamentals in place, the market is estimated to surpass the activity levels of CY 2023 and reach record highs in CY 2024. Post that, sales and new launches are projected to increase at a CAGR of approximately 10%.
Company Information
Runwal Enterprises Ltd is a real estate developer present across the full spectrum of real estate development, specialising in residential projects that cater to affordable, mid-income, and luxury segments, as well as commercial spaces, retail malls and educational buildings. The company is a recognised brand in the industry and has a strong presence in Mumbai.
Strengths of Runwal Enterprises IPO
Prominent Residential Real Estate Developer in Mumbai
As of September 30, 2024, Runwal Enterprises Ltd ranked second in terms of new launches and sales with approximate shares of 5.69% and 5.25% between January 2019 and September 2024, respectively. It has completed 10 residential projects in the last 15 years within Mumbai comprising 10.73 million square feet of developable area.
Well-established Brand
For the past decade, the Company and Group, promoted by Subodh Subhash Runwal, has built on the legacy of its predecessor “Runwal Group” brand, which has been a prominent name in the real estate industry since its inception in 1978.
Notably, the launch of approximately 20,731 residential units between January 2019 and September 2024 has demonstrated its ability to meet the housing needs of a wide range of buyers across various segments. With 15,679 units sold within this period, it has solidified its position as one of the largest and most trusted residential real estate developers in Mumbai.
Robust Pipeline of Ongoing Projects and Upcoming Projects
The company has a robust pipeline of ongoing projects and upcoming projects which provide it with strong visibility over future cash flows. As of September 30, 2024, the company was executing ongoing projects with an aggregate developable area of 17.39 million square feet and has upcoming projects with an aggregate estimated developable area of 28.92 million square feet.
Ability to Sell at premium Pricing and Throughout the Construction Phase
According to JLL, its status as a renowned developer enables it to command premium pricing in some of the micro markets in Mumbai, such as Kanjurmarg and Mulund. This is consistent with the shift in consumer preference towards branded developers since the COVID-19 pandemic.
Strong Focus on Sustainable Development
One of its core strengths lies in its commitment to sustainable development, which integrates economic, social and environmental considerations into its business practices. Its environmental initiatives include the use of renewable fuels, the reduction of greenhouse gas emissions, climate risk management, water conservation, recycling and ensuring emergency preparedness. Socially, it prioritises health and safety, employee benefits, diversity, equity and its impact on local communities.
Risks of Runwal Enterprises
- Geographical Concentration
As of September 30, 2024, 100% of the company’s real estate development projects were located in Mumbai. Consequently, it faces risks stemming from economic, regulatory and other changes, including natural disasters in these areas affecting the performance of the real estate market in Mumbai, which might adversely impact its business, results of operations, cash flows and financial condition.
- Failure to Complete Projects
As of September 30, 2024, the company had 25 ongoing projects and 32 upcoming projects which consisted of 80.61% of its total developable area. Failure to complete these projects or future projects within their expected timelines, or at all, and any cost overruns could adversely affect its business, reputation, financial condition and results of operations.
- Unsold Units
As of September 30, 2024, the company had an aggregate of 8,003 unsold units consisting of a total unsold developable area of 7.04 million square feet across its completed projects and ongoing projects. If it’s unable to sell its existing or future inventory within the expected timelines or at all, its business, financial condition and results of operations may be adversely affected.
Runwal Enterprises Financials
Peer Comparison
| Company | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|---|
Runwal Enterprises Ltd | 662.19 | 8.69 | 26.69 | 32.55 |
Oberoi Realty Ltd | 4495.79 | 52.99 | 13.92 | 380.76 |
Macrotech Developers Ltd | 10316.10 | 16.03 | 8.87 | 175.67 |
Godrej Properties Ltd | 3035.62 | 26.09 | 7.26 | 359.39 |
Sunteck Realty Ltd | 564.84 | 4.99 | 2.27 | 213.28 |
Keystone Realtors Ltd | 2222.25 | 9.85 | 6.24 | 157.85 |
Prestige Estates Projects Ltd | 7877.10 | 34.28 | 12.17 | 281.61 |
IPO Registrar and Book Running Lead Managers
- IPO Registrar: MUFG Intime India Pvt Ltd
- Book Running Lead Managers: ICICI Securities Ltd and Jefferies India Private Ltd
Business Model
Runwal’s real estate development business spans all activities related to real estate development, from the identification and acquisition of land through to the planning, execution, marketing and sales of its development projects. It is through this process that it develops a variety of residential and commercial projects comprising apartments, retail spaces, offices, schools, hospitals, and town halls.
As of September 30, 2024, the company had developed and were in the process of developing an aggregate developable area of 28.53 million square feet of residential, retail and commercial properties, which include residential buildings, townships, corporate offices, retail malls, retail spaces, schools and various other real estate projects spread across the eastern, central, peripheral central, south central and western suburbs of Mumbai.
Company Growth Trajectory
Revenue from operations of Runwal Enterprises Ltd grew from ₹61.360 crores in FY 22 to ₹662.193 crores in FY 24, while EBITDA margin grew from (103.95%) in FY 22 to 28.25% in FY 24. Gross margin grew from 0% in FY 22 to 56.87% in FY 24. Robust pipeline of projects coupled with demonstrated project execution capabilities has aided the company's growth over the years.
Market Position
With 14+ years in operations, Runwal Enterprises Ltd is ranked second in terms of new launches and sales with approximate shares of 5.69% and 5.25% between January 2019 and September 2024, respectively. As of September 30, 2024, the company had 15 completed projects, 25 ongoing projects, and 32 upcoming projects.
Runwal Enterprises IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Revenue (in ₹ crores) | 707.71 | 234.66 | 63.19 |
Profit/(Loss) Before Tax (in ₹ crores) | 158.46 | (18.04) | (68.93) |
Profit/loss for the period (in ₹ crores) | 107.28 | 6.73 | 50.99 |
EPS in ₹ | 8.69 | (0.49) | (4.05) |
Runwal Enterprises IPO Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit/(Loss) Before Tax (in ₹ crores) | 158.46 | (18.04) | (68.93) |
Net Cash Inflow (used in) / Generated from Operating Activities (in ₹ crores) | 239.50 | 512.57 | (40.42) |
Net Cash (used in) / Generated from Investing Activities (in ₹ crores) | (71.21) | (275.17) | (268.38) |
Net Cash Generated from / (used in) Financing Activities (in ₹ crores) | (152.83) | (578.46) | 728.77 |
Cash and Cash Equivalents at the End of the Year/Period (in ₹ crores) | 116.88 | 101.42 | 442.49 |
How to Check the Allotment Status of Runwal Enterprises IPO?
Visit the Registrar’s Website
- Go to the official website of MUFG Intime India Pvt Ltd
- Choose ‘Public Issues’ from ‘Investor Services’
- Select ‘Company Name’ and enter either your PAN, app number, DP/client ID, account number/ IFSC
- Click on ‘Submit’ to know the status
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
Check on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Runwal Enterprises Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN Then click 'Submit' to know the allotment status.
How to Apply for Runwal Enterprises IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Runwal Enterprises IPO FAQs
Where can I read more about Runwal Enterprises business?
You can read more about Runwal Enterprises and its IPO from the company’s red herring prospectus (RHP) here.
What is the Runwal Enterprises IPO?
The IPO of Runwal Enterprises Ltd comprises only a fresh issue aggregating up to ₹1000 crores.
When will the IPO of Runwal Enterprises go live?
The exact dates of the IPO are yet to be announced.
