Runwal Enterprises Ltd

Runwal Enterprises IPO review covering the company’s business, financials, growth prospects, valuation, key risks and factors investors should consider.

Runwal Enterprises IPO Review, GMP, Price & Analysis

Runwal is an established Mumbai developer, but the business sits in one city. Operating cash flow was negative in each
of the last three years, and borrowings of INR 2,909 cr stand against total equity of INR 845 cr. Tax authorities have
confirmed demands, now under appeal, over cash received above the recorded price of flats, money has moved back and
forth between the group and promoter-owned companies, a GST demand of INR 189 cr carries an equal penalty, and the
land under 52.3% of the upcoming pipeline is not yet owned. Since the GMP of 4% to 5% is not appealing against the
quality of business/proceedings, we would skip the issue even for IPO gains.