Mumbai-based real estate developer Runwal Enterprises is aiming to strengthen its balance sheet as its Rs 500-crore initial public offering (IPO) opens on September 25.
Subodh Runwal, chairman and managing director of Runwal Enterprises, said, “The objective of going public is to strengthen the company’s balance sheet and for future growth. We are looking at this as an opportunity to access the capital markets, and we are also looking at it from a further wealth-creation point of view.”
The IPO, which is a completely fresh issue, has a price band of Rs 290 to Rs 305 per equity share with a face value of Rs 2, valuing the company at around Rs 4,507.6 crore at the top of the price band.
The IPO will close on Tuesday, September 29, 2026. Investors can bid for a minimum of 49 equity shares and in multiples of 49 equity shares thereafter.
The company will use the proceeds from the issue to repay or prepay, in full or in part, certain outstanding borrowings; invest in its wholly owned material subsidiaries, Runwal Residency and Evie Real Estate, for the repayment or prepayment, in full or in part, of certain of their outstanding borrowings; fund acquisitions of future real estate projects; and for general corporate purposes.
Earlier, Runwal Enterprises’ revenue from operations for the fiscal year 2026 (FY26) stood at Rs 1,798.95 crore, up 78.5 per cent year-on-year (YoY). Its net profit for FY26 was Rs 185.76 crore, twice its profit in FY25.
Runwal Enterprises recorded sales of Rs 2,353.50 crore in FY26, up 23.93 per cent YoY. Its collections during the same period were Rs 1,854.61 crore, up 19.17 per cent YoY. The company launched projects spanning 2 msf in FY26 compared to 1.1 msf in FY25.
According to property consultancy firm JLL, Runwal Enterprises is ranked third in terms of new launches and sales in Mumbai, with approximate market shares of 2.33 per cent and 2.46 per cent, respectively, between January 2023 and March 31, 2026.
The company has an ongoing and upcoming project pipeline of 76.29 million square feet (msf). So far, it has developed projects spanning 12.09 msf. Runwal Enterprises’ portfolio includes projects across residential, commercial and retail segments in the Mumbai metropolitan region (MMR).
“We want to operate in the luxury, mid and slightly above affordable segments. The price bracket of Rs 25,000-50,000 is working quite well for this market. Beyond MMR, we might look at Pune and other cities within Maharashtra,” Runwal told Business Standard.
Runwal Enterprises’ net debt as of FY26 was around Rs 2,778.1 crore, and the net debt-to-equity ratio was 3.29 times.
“After the IPO, net debt-to-equity will come closer to 2 times. The objective is to strengthen the balance sheet. We will be taking further steps to bring down the debt even further,” Runwal said.
On the changes in issue size, Runwal said that the draft red herring prospectus (DRHP) was first filed to raise Rs 1,000 crore — 18 months ago. “But as time progressed, we assessed our cash-flow requirements and were able to stitch up some very good partnerships. Since we are pursuing an asset-light model, we thought that a Rs 500 crore fund base is more than sufficient at this point in time,” he added.
Runwal went on to add that the company has picked up three large redevelopment projects across Mahalakshmi, Marine Drive and Bandra. “We are pursuing a lot of joint ventures and joint development strategies for project acquisitions. That is our strategy for now,” he added.
On demand, Runwal said that his firm is seeing good absorption. “There are oversupply concerns in certain micro-markets. But reputed developers’ projects are doing well. I don’t see any challenge there,” he added.
Earlier, Mumbai recorded sales of 47,355 units in the first half of 2026, up 1 per cent YoY.