New Delhi, Oct. 3 -- Mumbai-based real estate developer Runwal Developers Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 2,000 crore ($225 million) through an initial public offering (IPO).
The developer, which majorly focuses on the Mumbai Metropolitan Region (MMR) and Pune markets, aims to raise Rs 1,700 crore via fresh share sale and the rest through offer for sale (OFS) by promoter Sandeep Subhash Runwal.
A large part of the fundraise will be used to clear debt, and the rest for general corporate purposes. The company is also likely to raise a pre-IPO round of Rs 340 crore.
As per the DRHP, the company has a total debt of around Rs 3,300 crore.
The developer has a portfolio of 17 ongoing and 24 upcoming projects, and claims to have delivered 35 projects across residential, commercial, and retail segments.
ICICI Securities, BOB Capital Markets, IIFL Securities, and JM Financial are the book running lead managers for the IPO..
Meanwhile, another faction of the Runwal family, Runwal Enterprises, filed for a Rs 1,000 crore IPO in April this year, comprising only a primary share sale. Backed by HDFC Capital Fund, which holds a 12.83% stake at the parent level, Runwal Enterprises will use the proceeds for debt repayment or prepayment. In October last year, HDFC Capital had also struck a broader deal with the company to invest Rs 1,150 crore over a period of time across various projects.
The IPO market has seen several developers queuing up for an IPO tapping into the strong momentum in the capital market. Chennai-based Casagrand is preparing to list after securing approval from SEBI, while Kalpatru Ltd went public earlier this year, raising about Rs 1,600 crore for debt repayment and general corporate purposes.
Published by HT Digital Content Services with permission from VC Circle.