Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Mumbai-based Runwal Developers has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering. The proposed IPO is sized at INR 2,000 crore and includes a fresh issue of INR 1,700 crore along with an offer for sale of INR 300 crore by promoter Sandeep Subhash Runwal. Proceeds from the fresh issue will mainly be used to repay existing borrowings and for general corporate purposes. The approval comes amid steady primary market activity across sectors.
Runwal Developers has secured regulatory clearance from SEBI to proceed with its initial public offering, marking a key step in the company's capital-raising plans. The proposed IPO aims to raise INR 2,000 crore, comprising a fresh equity issue of INR 1,700 crore and an offer for sale worth INR 300 crore by promoter Sandeep Subhash Runwal. Advertisement
According to the draft papers filed earlier, the company plans to use the proceeds from the fresh issue primarily for the repayment or prepayment of certain outstanding borrowings taken by the company and its subsidiaries. A portion of the funds will also be allocated towards general corporate purposes, as outlined in the filing.
The offer for sale component will result in a partial dilution of the promoter's stake, while the company itself will not receive any proceeds from this portion of the issue. At the time of filing the draft red herring prospectus, the promoter group held a majority shareholding in the company.
Runwal Developers has been active in the Mumbai Metropolitan Region and has developed residential, commercial, and mixed-use projects over the years. Like several real estate developers, the company has relied on a mix of debt and internal accruals to fund its projects, making balance sheet strengthening a key objective behind the public issue.
The SEBI approval was granted as part of a broader set of clearances issued to multiple companies planning to tap the capital markets. This reflects continued investor interest in primary market offerings, even as companies focus on improving financial discipline and reducing leverage.
Following the regulatory nod, Runwal Developers can now move ahead with finalising the issue details, including price band and timelines, subject to market conditions.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
