Runwal Developers IPO

Strengths · 7

• 01The company has 35 completed, 17 ongoing and 24 upcoming projects as of 30 June 2025, and has delivered 11.22 million square feet.
• 02Revenue from operations grew from Rs 301.95 crore in FY2023 to Rs 539.44 crore in FY2024 and Rs 1163.23 crore in FY2025.
• 03EBITDA was Rs 462.94 crore in FY2025 at a margin of 39.80%.
• 04Rental income was Rs 267.36 crore in FY2025 from 2.89 million square feet of leasable area, up from 1.70 million square feet in FY2023.
• 05Gross collections from unit sales were Rs 1507.51 crore in FY2025, against Rs 1036.23 crore in FY2023.
• 06The promoter and promoter group hold 99.15% before the issue, with the promoter alone at 72.76%.
• 07The auditors have no qualifications that were left out of the restated financials.

Risks · 9

• 01Operating cash flow was negative Rs 308.59 crore in FY2025, against positive Rs 85.27 crore in FY2024, as inventories grew by Rs 1377.41 crore.
• 02Total borrowings were Rs 3327.52 crore at 31 March 2025 against net worth of Rs 2583.02 crore. Net debt to equity was 0.98x and interest coverage was 1.50.
• 03Profit after tax was Rs 137.42 crore in FY2025. FY2024 profit of Rs 1203.63 crore included an exceptional item of Rs 1159.30 crore, so the years are not comparable.
• 04Contingent liabilities were Rs 532.25 crore at 31 March 2025, of which Rs 492.78 crore is disputed income tax. The tax department assessed Rs 277.20 crore after a search in October 2023.
• 05Proceedings against the company involve Rs 1066.92 crore, including 61 tax proceedings and 5 criminal proceedings.
• 06Most projects are in MMR and Pune, so a slowdown in these two markets would affect sales and leasing.
• 07The company has 17 ongoing residential projects and 24 upcoming projects. Delays can bring RERA interest and penalties.
• 08Rs 300 crore of the Rs 2000 crore offer is an offer for sale. That money goes to the promoter and not to the company.
• 09Rs 1300 crore of the fresh issue will repay borrowings. The balance goes to general corporate purposes, with no amount fixed yet, capped at 25% of gross proceeds.

Runwal Developers Limited is a real estate development company based in Mumbai. It was incorporated as Runwal Developers Private Limited on 22 March 1988 and became a public limited company in August 2025. Its registered office is at Runwal & Omkar Esquare, Sion (East), Mumbai.

The company builds lifestyle-oriented projects. Its portfolio covers residential buildings, commercial projects and organised retail, all in the Mumbai Metropolitan Region (MMR) and Pune. As of 30 June 2025, it had 35 completed projects, 17 ongoing projects and 24 upcoming projects. It has delivered 11.22 million square feet of real estate so far.

It earns from selling residential units and from rent on commercial and retail space. In FY2025 the company recorded sales value of Rs 1291.42 crore and gross collections of Rs 1507.51 crore. Rental income was Rs 267.36 crore in FY2025, against Rs 24.73 crore in FY2023. Leasable area rose from 1.70 million square feet to 2.89 million square feet over the same period.

The company also plans to enter hospitality. It has three upcoming hotels, in Worli, Thane and Pune, to be developed under management contracts. As of 30 June 2025, it had 594 permanent employees and 19 contractual employees.

Sandeep Subhash Runwal is the sole promoter and Managing Director. The promoter and promoter group hold 99.15% of the company before the issue. The company has appointed ICICI Securities, BOB Capital Markets, IIFL Capital Services and JM Financial as lead managers.

The industry

The industry report by Anarock says the Indian real estate market is expected to grow to US$ 1 trillion by 2030 and US$ 5.8 trillion by 2047. From 2022 to 2024, supply and absorption of Indian residential real estate rose by 15.35% and 25.97%. From 1 January 2022 to 31 March 2025, MMR ranked first among the top seven markets in supply, absorption and average base selling price. Runwal Developers works mainly in MMR and Pune.