Runwal said the company’s debt, currently around ₹2,500 crore, will drop to about ₹2,000 crore once the IPO proceeds come in — roughly ₹350 crore of the ₹500 crore raised will go toward paying down debt, with the remaining ₹150 crore earmarked for growth. He added that further reductions are planned through asset monetisation and bulk deals, though he did not commit to a specific target or timeline.
The IPO is a fresh issue of ₹500 crore with no offer for sale, meaning all proceeds go directly to the company rather than to existing shareholders cashing out.
Runwal said the company’s pre-sales — new bookings, as distinct from accounting revenue — have grown at a compound annual rate of close to 25% over the past three years. He pointed to a sharp jump in profitability: “I’m pleased to inform you that last year, our profit after tax, which was ₹50 crore, this year has moved to ₹200 crore, so there has been like a fourfold increase in the profitability.”
On strategy, the company is steering away from affordable housing toward higher-margin segments. It recently launched a large project in Mahalaxmi and has projects coming up at Marine Drive and Bandra, both in South Mumbai. Runwal said the shift is aimed at improving margins through higher per-unit pricing in these locations.
The company also pointed to its scale as a competitive buffer in Mumbai’s crowded real estate market. Runwal said: “We have been in this industry for the last 50 years in the Mumbai market, and we have delivered more than 50,000 homes.” He said consolidation since the introduction of RERA — India’s real estate regulator, set up in 2016 to bring greater transparency and accountability to developers — has worked in favour of established players like his company.
Beyond Mumbai, Runwal Enterprises is developing close to 88 million square feet across the city and has diversified into Alibaug, where it holds a 175-acre land parcel for a large development. Plans for expansion into the western suburbs, the wider Mumbai Metropolitan Region (MMR) and other Maharashtra cities are still being worked out.The company’s commercial and retail businesses are also expanding through partnerships. HDFC Capital holds a 5% stake in the company. Japanese conglomerate Nishi-Nippon Railroad is partnering on a Grade A office building in the Bandra-Kurla Complex, Mumbai’s financial district. Blackstone has partnered through its real estate investment trust, Nexus, on a large shopping centre in Dombivli. Runwal said all three business lines — residential, retail and commercial office space — are being scaled up together.
For the full interview, watch the accompanying video
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