Runwal Enterprises IPO (25 Sep-29 Sep) Analysis
Updated: Oct 4
IPO Analysis | Mainboard (BSE and NSE) | Book Built Issue (Fresh Issue Only) | Regulation 6(1)
Based on Red Herring Prospectus dated September 21, 2026 | Residential and Commercial Real Estate | Mumbai, Maharashtra
STATUS: RHP FILED | Fresh Issue Only, No Offer for Sale | Regulation 6(1), SEBI ICDR | Mainboard, BSE and NSE | Price Band: [TBD] | All Figures in Rs. Lakhs unless stated
Runwal Enterprises Limited, formerly Runwal Enterprises Private Limited and before that Runwal Apartments Private Limited, is incorporated under CIN U70109MH2016PLC273223, with its registered and corporate office at Runwal and Omkar Esquare, 4th floor, Off Eastern Express Highway, Opp Sion Chunabhatti signal, Sion East, Mumbai 400022.
The website is www.runwalenterprises.com. The promoter is Subodh Subhash Runwal. Abhishek Kumar Jain is Company Secretary and Compliance Officer. The Runwal group traces its origins to 1978, and emerged as a separate entity under the current promoter's leadership in 2016.
The company is a residential and commercial real estate developer with a strong Mumbai presence, spanning affordable, mid income and luxury residential segments as well as commercial spaces, retail malls and educational buildings.
As of March 31, 2026, it has 19 Completed Projects, 28 Ongoing Projects and 33 Upcoming Projects, covering an aggregate Developable Area of 88.37 million square feet, of which 84.39% is residential.
Per the RHP's commissioned JLL Report, the company ranks third in Mumbai by new launches and sales between January 2023 and March 2026, with roughly 2.33% and 2.46% market share respectively, and ranks first by sales in the eastern suburbs submarket.
94.56% of the total developable area comes from greenfield projects, where the company acquires undeveloped land and carries the project through approvals, construction and sale itself, rather than through joint development agreements. The company's financial year ends March 31.
Key Basics
This is a mainboard book built issue on the BSE and NSE, with NSE as the designated exchange, made under Regulation 6(1) of the SEBI ICDR Regulations, meaning the company meets the standard profitability and net worth track record test. The RHP is dated September 21, 2026, and calls the transaction an Issue rather than an Offer throughout. The Price Band and lot size remain undetermined at this stage.
Field | Value |
Document Type | Red Herring Prospectus dated September 21, 2026. Price Band, Issue Price and lot size are [TBD]. |
Platform | Mainboard, BSE and NSE. Designated Stock Exchange: NSE. |
Issue Structure | Fresh Issue only, aggregating up to Rs.50,000.00 Lakhs. There is no Offer for Sale. |
Face Value | Rs.2 per Equity Share, after a share split from Rs.10 face value completed in late 2024 |
Pre issue Equity | 12,50,50,000 Equity Shares |
Recent Transaction | 6,341,436 Equity Shares issued on conversion of compulsorily convertible debentures on August 28, 2026, at a conversion price of Rs.342.49 per Equity Share |
Credit Rating | IND BBB plus/Stable, from India Ratings and Research, for the company; IND BBB plus/Stable/IND A2 for subsidiary Runwal Residency Private Limited |
BRLMs | ICICI Securities Limited, Jefferies India Private Limited |
Registrar | MUFG Intime India Private Limited |
Bid Dates | Anchor September 24, 2026. Bidding opens September 25, 2026 and closes September 29, 2026. |
What distinguishes this issue is that it is entirely a Fresh Issue, with no Offer for Sale and no promoter exit. It is also the only issue in this batch to carry a formal credit rating and a recent, priced primary transaction, the CCD conversion at Rs.342.49 per share just weeks before this filing, which gives a reference point the Price Band can be checked against once announced.
How Will the IPO Money Be Used?
This is a Fresh Issue with no Offer for Sale, so the entire proceeds are available to the company, net of issue expenses.
Object | Amount (Rs. Lakhs) | Details |
Repayment or prepayment of the company's own borrowings | 10,000.00 | Applied against term loan and overdraft facilities from IndusInd Bank taken for the Runwal Pinnacle project, of which Rs.20,095.50 Lakhs was outstanding as of July 31, 2026. |
Investment in subsidiaries Runwal Residency Private Limited and Evie Real Estate Private Limited, for their debt repayment | 22,500.00 | Evie Real Estate owes Rs.35,648.70 Lakhs and Runwal Residency owes Rs.28,651.00 Lakhs on identified borrowings as of July 31, 2026. Certain Runwal Residency loans are from ICICI Bank Limited, an affiliate of BRLM ICICI Securities. |
Funding acquisitions of future real estate projects and general corporate purposes | [TBD] | Capped in aggregate at 35% of Gross Proceeds; within that, acquisitions and general corporate purposes are each separately capped at 25% of Gross Proceeds. |
Total Net Proceeds | [TBD] | To be finalised once the Issue Price is set. |
The two quantified debt objects total Rs.32,500.00 Lakhs, 65% of the Rs.50,000.00 Lakhs Fresh Issue, all of it going to repay existing project financing rather than fund new construction directly.
One of the loans being repaid by subsidiary Runwal Residency was taken from ICICI Bank Limited, which is an affiliate of ICICI Securities, one of the two BRLMs running this Issue; the RHP discloses this as a related risk factor.
Financial Performance
Figures are Rs. Lakhs, converted from the RHP's Rs. Millions. Real estate revenue is recognised on project completion, so year to year revenue swings do not track the company's actual sales momentum; the RHP's own Sales Value metric, based on bookings rather than completions, is a steadier guide and is shown alongside the accounting numbers below.
Revenue, EBITDA, and Profitability
Consolidated (Rs. Lakhs) | FY2026 | FY2025 | FY2024 |
Revenue from Operations | 1,79,894.90 | 1,00,776.60 | 2,40,886.50 |
Sales Value (bookings, not accounting revenue) | 2,35,350.50 | 1,89,904.90 | 1,52,764.10 |
EBITDA | 34,980.50 | 18,011.00 | 20,173.40 |
EBITDA Margin | 19.44% | 17.87% | 8.37% |
Profit After Tax | 18,576.30 | 5,564.80 | 9,370.00 |
EPS, Basic and Diluted (Rs.) | 16.74 | 6.27 | 6.04 |
Return on Net Worth | 27.24% | 17.20% | 20.26% |
Revenue from Operations fell 58.15% in FY2025 to Rs.1,00,776.60 Lakhs from Rs.2,40,886.50 Lakhs in FY2024, then rose 78.51% in FY2026 to Rs.1,79,894.90 Lakhs, a swing driven by project completion timing rather than underlying demand.
Sales Value, the RHP's own booking based metric, tells a steadier story: it rose in every year shown, from Rs.1,52,764.10 Lakhs in FY2024 to Rs.2,35,350.50 Lakhs in FY2026. EPS rose sharply in FY2026 to Rs.16.74 from Rs.6.27, and EBITDA margin more than doubled from 8.37% in FY2024 to 19.44% in FY2026.
Balance Sheet and Cash Flow
Consolidated (Rs. Lakhs) | FY2026 | FY2025 | FY2024 |
Total Assets | 10,25,449.60 | 8,32,813.90 | 7,07,973.80 |
Total Equity | 84,481.60 | 48,507.50 | 45,108.10 |
Net Debt | 2,77,811.00 | 2,25,066.00 | 1,63,122.70 |
Net Debt to Equity | 3.29x | 4.64x | 3.62x |
Net Cash from Operating Activities | (18,071.30) | (19,813.60) | (54,948.20) |
Contingent Liabilities (as at March 31, 2026) | 7,98,008.10 | - | - |
Net Debt to Equity of 3.29x in FY2026 is far higher than any of the seven listed peers cited in this RHP, the closest being Kalpataru Limited at 2.15x; most others sit below 1x. Operating cash flow has been negative in every year shown, though the outflow narrowed from Rs.54,948.20 Lakhs used in FY2024 to Rs.18,071.30 Lakhs in FY2026, typical for a developer funding construction ahead of unit handover.
Contingent liabilities of Rs.7,98,008.10 Lakhs as of March 31, 2026 include Rs.5,49,000.00 Lakhs of personal guarantees received and Rs.1,84,000.00 Lakhs of corporate guarantees extended between group entities and their respective lenders, a sum that dwarfs the company's own Total Equity of Rs.84,481.60 Lakhs.
How Does It Compare to Peers?
The RHP names seven listed peers: Oberoi Realty, Lodha Developers, Godrej Properties, Sunteck Realty, Keystone Realtors, Prestige Estates Projects and Kalpataru Limited, based on closing prices on NSE as of September 18, 2026. Runwal Enterprises' own P/E cannot be shown until the Price Band is set.
Company | EPS (Rs.) | P/E (x) | NAV (Rs.) | RoNW (%) |
Runwal Enterprises Limited | 16.74 | [TBD] | 61.43 | 27.24% |
Oberoi Realty Limited | 68.96 | 25.88 | 492.89 | 13.99% |
Lodha Developers Limited | 34.25 | 33.42 | 233.11 | 14.73% |
Godrej Properties Limited | 61.42 | 27.53 | 635.96 | 9.61% |
Sunteck Realty Limited | 13.94 | 21.09 | 245.92 | 5.60% |
Keystone Realtors Limited | 6.21 | 56.96 | 226.82 | 3.32% |
Prestige Estates Projects | 27.76 | 51.70 | 377.80 | 8.02% |
Kalpataru Limited | 4.76 | 57.66 | 199.91 | 1.94% |
Runwal Enterprises' RoNW of 27.24% is the highest of the entire set shown, ahead of Oberoi Realty's 13.99% and Lodha Developers' 14.73%, though this partly reflects a smaller equity base rather than superior scale; NAV per share at Rs.61.43 (Rs.75.00 after accounting for the recent CCD conversion) is the lowest in the group, well below Oberoi Realty's Rs.492.89 or Godrej Properties' Rs.635.96. The RHP's industry composite P/E of 39.18 is a simple average of the seven named peers.
Key Risks
• Net Debt to Equity stood at 3.29x in FY2026, 4.64x in FY2025 and 3.62x in FY2024, well above every listed peer named in this RHP, the closest being 2.15x.
• Contingent liabilities of Rs.7,98,008.10 Lakhs as of March 31, 2026, including Rs.5,49,000.00 Lakhs of personal guarantees received and Rs.1,84,000.00 Lakhs of corporate guarantees, are nearly nine and a half times the company's own Total Equity of Rs.84,481.60 Lakhs.
• Operating cash flow has been negative in every year shown, Rs.18,071.30 Lakhs used in FY2026, Rs.19,813.60 Lakhs in FY2025 and Rs.54,948.20 Lakhs in FY2024, so the business has not yet funded itself from its own operations.
• Nearly every Completed and Ongoing Project listed in the RHP shows a construction delay against its original RERA completion date, with COVID 19 cited for some and plain construction delay for others, ranging from a few months to over 50 months on projects such as Runwal Bliss Phase 2 and Runwal Garden City Cluster 6.
• Revenue from Operations swung from Rs.2,40,886.50 Lakhs in FY2024 to Rs.1,00,776.60 Lakhs in FY2025, a 58.15% fall, before recovering to Rs.1,79,894.90 Lakhs in FY2026, illustrating how completion timing rather than demand drives the accounting revenue line in any single year.
• One of the loans being repaid with Fresh Issue proceeds, at subsidiary Runwal Residency Private Limited, is owed to ICICI Bank Limited, an affiliate of BRLM ICICI Securities Limited, a related party arrangement the RHP itself flags as a risk factor.
• 94.56% of the company's total developable area comes from greenfield land acquisition rather than joint development agreements, exposing the company directly to title clearance, encroachment and land acquisition risk rather than sharing it with a landowner partner.
• Sales are concentrated in Mumbai, and within that mostly in the eastern suburbs and Kalyan and Dombivli micro markets, so a downturn specific to these submarkets would affect the company more than a nationally diversified peer.
• A recent primary share transaction, the compulsorily convertible debenture conversion on August 28, 2026, was priced at Rs.342.49 per Equity Share, a useful but not conclusive reference point for judging the eventual Issue Price.
• Industry and market data in this RHP, including the company's ranking claims by new launches and sales, comes from the JLL Report, commissioned and paid for by the company itself for the purposes of this Issue.
• The promoter, Subodh Subhash Runwal, and promoter group members receive salary and other related party payments from the company and its subsidiaries, disclosed in the RHP's related party transactions summary.
Positives to Note
• Sales Value, the RHP's booking based measure of demand, rose every year shown, from Rs.1,52,764.10 Lakhs in FY2024 to Rs.1,89,904.90 Lakhs in FY2025 to Rs.2,35,350.50 Lakhs in FY2026, a steadier trend than the accounting revenue line.
• EBITDA margin more than doubled from 8.37% in FY2024 to 19.44% in FY2026, and Return on Net Worth of 27.24% in FY2026 is the highest among all peers named in this RHP.
• The company holds a formal credit rating of IND BBB plus/Stable from India Ratings and Research, and subsidiary Runwal Residency Private Limited carries the same rating plus a short term IND A2 rating.
• Operating cash outflow has narrowed in every year shown, from Rs.54,948.20 Lakhs used in FY2024 to Rs.18,071.30 Lakhs in FY2026, even while the company continued heavy construction spending.
• Sales area grew from 1.62 million square feet in each of FY2024 and FY2025 to 2.07 million square feet in FY2026, and units sold rose from 1,688 to 2,182 over the same period, both consistent with the Sales Value growth.
• The Issue is a Fresh Issue only, with no Offer for Sale, so the entire Rs.50,000.00 Lakhs raised is available to the company and its subsidiaries rather than being partly diverted to an existing shareholder's exit.
Disclaimer
The content on this website is for informational and educational purposes only and should not be construed as investment advice, a recommendation, or a solicitation to buy or sell any security, mutual fund, or financial instrument. Equity Research India is not a SEBI-registered investment advisor or research analyst, and nothing on this site constitutes personalized financial advice.
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. NAV, returns, rankings, and other data may change and may not reflect the most current information at the time of reading.
Readers should conduct their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. Equity Research India and its authors accept no liability for any loss or damage arising from the use of this content.
Comments