Runwal Enterprises trims IPO size by half, revises use of proceeds

According to fresh market updates, Mumbai-based real estate developer Runwal Enterprises has halved the size of its proposed public offering and accordingly revised the objectives of the offer.

The Subodh Runwal-promoted firm had approached the capital markets in March 2025 by filing a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to mobilize up to Rs 1,000 crore through an initial public offering (IPO). The offering comprised entirely of a fresh offering of shares.

The capital markets regulator subsequently approved the firm's IPO papers in August 2025, clearing the way for the launch of the public offering.

According to a notice to market participants dated September 10, Runwal Enterprises had filed an application with SEBI on August 11 seeking approval to reduce the offering size. The move follows new regulations that allow firms to gain or decrease their fresh offering size by up to 50 percent without refiling the DRHP.

Following SEBI's approval letter dated September 10, Runwal Enterprises has reduced the offering size to Rs 500 crore from the earlier Rs 1,000 crore and disclosed the change through an addendum dated September 11.

The firm has additionally revised the objectives of the offering.

Runwal Enterprises will now utilise Rs 100 crore of the net fresh offering proceeds to repay debt against its outstanding borrowings of Rs 431.4 crore on a standalone basis as of July 2026.

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A further Rs 225 crore will be used for investment in its wholly owned material subsidiaries, Runwal Residency and Evie Real Estate, to repay a portion of their outstanding borrowings.

The total outstanding borrowings of Runwal Residency and Evie Real Estate stood at Rs 286.5 crore and Rs 356.4 crore, respectively, as of July 2026.

The remaining proceeds from the offering will be used to fund acquisitions of future real estate projects and for general corporate purposes.

Runwal Enterprises recorded consolidated sales value of Rs 2,353.5 crore in the financial year ended March 2026, an gain of 24 percent from Rs 1,899 crore in the previous year. That stated, its average selling price declined to Rs 11,366 per square foot during the period from Rs 11,754 per square foot a year earlier.

The firm's total saleable area increased sharply to 2.07 million square feet in FY2026 from 1.62 million square feet in the previous year.

ICICI Securities and Jefferies India have been appointed as the merchant bankers managing the Runwal Enterprises IPO.