Stories
Runwal Enterprises IPO Subscribed 70% on Day 2; QIBs Lead Demand
- •Runwal Enterprises IPO saw 70% subscription on Day 2, with strong interest from Qualified Institutional Buyers (QIBs) at 96%.
- •The real estate developer aims to raise Rs 500 crore through a fresh issue of equity shares, with the IPO closing on September 29.
- •Ahead of the IPO, Runwal Enterprises secured Rs 148.9 crore from anchor investors, allotting shares at Rs 305 each.
- •Proceeds from the IPO will primarily be used for debt reduction (Rs 325 crore) and funding future real estate projects.
- •Runwal Enterprises boasts a significant project pipeline, with 28 ongoing projects and 33 upcoming projects across Mumbai.
Key Questions Answered
The initial public offering of Runwal Enterprises was subscribed 70 percent as of 5:00 pm on September 28, with qualified institutional buyers leading demand at 1.05 times. Shares were trading at a grey market premium of around 4.43 percent over the IPO price.
Runwal Enterprises raised Rs 148.9 crore from anchor investors by allotting 48.83 lakh shares at Rs 305 per share, which was the upper end of the price band. Tata Mutual Fund was the largest anchor investor, acquiring shares worth Rs 40 crore.
The company is looking to raise Rs 500 crore through a fresh issue of shares, with a significant portion earmarked to deploy Rs 325 crore toward the repayment of borrowings for the company and its subsidiaries, Runwal Residency and Evie Real Estate. The remaining funds will support future real estate project acquisitions and general corporate purposes.
