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Industry : Realty

Runwal Enterprises Limited View all IPOs

Price Band

Rs 290 – Rs 305

Runwal Enterprises Limited is going public with a fresh issue. The issue opens on 25th September 2026.

MOJO CALL

Why

Avoid

MOJO CALL

Avoid

Neutral

Strong Brand and Market Position in Mumbai

Runwal Enterprises is ranked third in Mumbai in terms of both new launches (~2.33% market share) and sales (~2.46% market share) between January 2023 and March 2026, per JLL. Within key submarkets, the company holds even stronger positions: it ranks first in sales in the eastern suburbs submarket (~7.88% share) and first in new launches in Kalyan-Dombivli (~11.41% share). The brand has earned multiple industry recognitions including "Developer of the Year (Residential)" from Hindustan Times, Realty+ and other platforms. This brand equity enables premium pricing in micro-markets like Kanjurmarg and Mulund, and the company has demonstrated the ability to sell ~89% of saleable area before receiving occupancy certificates, reflecting strong buyer confidence.

Demonstrated Project Execution and Timely Delivery

The company has completed 19 projects comprising 12.09 msf and sold 11,400 units, with several recent projects delivered ahead of RERA timelines (e.g. Runwal Forests Phase 1 delivered 11 months early, Runwal Gardens Phase 2 towers delivered 7 to 10 months early). This is supported by an integrated in-house model spanning business development, land acquisition, liaison, design, construction management, and sales. The company also maintains relationships with reputed design firms (Hafeez Contractor, Edifice Consultants, HBA) and construction companies.

High Geographic Concentration in Mumbai

As of March 31, 2026, 66.65% of the company's real estate projects by Developable Area are located within Mumbai, and barring two Upcoming Projects near Alibaug, the company has no projects outside Mumbai. This means the business is heavily exposed to Mumbai-specific risks: local economic slowdowns, regulatory changes (e.g. RERA, DCR amendments, FSI policies), natural disasters and infrastructure delays can disproportionately impact revenues.

Valuations

Based on the FY2026 financials, the company is seeking a market-to-sales valuation of 2.5x and a price-to-earnings ratio of 24.3x. The company is a prominent real estate developer in the Mumbai Metropolitan Region (MMR), with a strong presence in the eastern suburbs and a leading position across its key micro-markets. However, its operations remain concentrated within Mumbai, with no meaningful presence in other geographies, exposing the business to significant regional concentration risk. We therefore recommend avoiding the issue.

Issue Details

Issue Opens	25th September 2026
Issue Closes	29th September 2026
Price Band	Rs 290 – Rs 305
Issue size (Upper Band)	Rs. 500 crore
Issue Type	FRESH ISSUE
Market cap (based on upper band)	Rs 4507.44 crore
Sales- March 2026 (Rs./Crs)	Rs. 1798.95 Cr
Net Profit - March 2026 (Rs./Crs)	Rs. 185.76 Cr
Industry	Realty
Promoters	SUBODH SUBHASH RUNWAL
Lead Manager	ICICI Securities and Jefferies

Objective of the Issue

Details

Objectives of the Issue – Fresh Issue: Rs 500 crore

The Objectives of the Offer are for:

Repayment/ pre-payment, in full or in part, of certain outstanding borrowings availed by the company – Rs 100 crore

Investment in its wholly owned Material Subsidiaries namely Runwal Residency Private Limited and Evie Real Estate Private Limited, for repayment/ pre-payment, in full or in part, of all or a portion of certain of their outstanding borrowings – Rs 225 crore

Funding acquisitions of future real estate projects and general corporate purposes – Rs 175 crore

List of Shareholders Selling Their Stake

No Offer for Sale since the entire issue is a Fresh Issue

Business Operations

About Company

Runwal Enterprises Limited is a Mumbai-based real estate developer present across the full spectrum of real estate development, specializing in residential projects catering to the affordable, mid-income and luxury segments, as well as commercial spaces, retail malls and educational buildings. Originally incorporated in 2016, the company traces its origins to the legacy Runwal group established in 1978 by Subhash Runwal.

Promoted by Subodh Subhash Runwal, the company is ranked third in Mumbai in terms of new launches and sales (market shares of ~2.33% and ~2.46% respectively, Jan 2023 to Mar 2026, per JLL). As of March 31, 2026, the company has 19 Completed Projects, 28 Ongoing Projects and 33 Upcoming Projects, with a total Developable Area of ~88.37 million sq. ft. (74.58 msf residential, 13.80 msf non-residential). The company is expanding geographically within Mumbai, from the eastern suburbs into western locations such as Mahalaxmi, Girgaum and Bandra.

Segment Revenue Breakup

Revenue Breakdown by Segment:
Segment	FY2026	FY2025	FY2024
Sale of residential/retail units	98.4%	99.6%	99.5%
Sale of Land Held as Inventory	1.3%	-	-
Others	0.3%	0.4%	0.5%

Financials

Financial Overview

The company's revenue de-grew by over 25% between FY2024 and FY2026, with revenues of Rs 1,799 crore recorded for FY2026.

For FY2026, the company's Operating Profit (EBITDA) stood at Rs 592.3 crore with margins of 32.92%, comparatively higher than Rs 394 crore and Rs 394 crore recorded in FY2025 and FY2024, respectively.

Consequently, in FY2026, the company recorded profits of Rs 185.8 crore with margins of 10.3%, compared to Rs 55.65 crore and Rs 93.7 crore recorded in FY2025 and FY2024, respectively.

The company has failed to generate positive operating cashflows (CFO) for the past 3 years. The company generated negative CFO of Rs 180.7 crore in FY2026. Similarly, the company recorded negative CFO of Rs 198 crore and Rs 549 crore in FY2025 and FY2024, respectively.

As of 31st March 2026, the company recorded borrowings (incl. lease liabilities) of Rs 2,931 crore.

Financial Performance (Rs/crore)

Rs./Crs	FY2026	FY2025	FY2024
Sales	1798.95	1007.77	2408.87
Net Profit	185.76	55.65	93.70