PSP Projects Ltd. Share Price

Runwal Enterprises

• Runwal Enterprises is coming out with a 100% book building; initial public offering (IPO) of 1,72,47,500 shares of face value Rs 2 each in a price band Rs 290-305 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 25, 2026 and will close on September 29, 2026.
• The shares will be listed on both BSE and NSE.
• The face value of the share is Rs 2 and is priced 145.00 times of its face value on the lower side and 152.50 on the higher side.
• Book running lead managers to the issue are ICICI Securities and Jefferies India.
• Compliance officer for the issue is Abhishek Kumar Jain. 

Profile of the company

Runwal Enterprises is a real estate developer present across the full spectrum of real estate development, specializing in residential projects that cater to affordable, mid-income, and luxury segments, as well as commercial spaces, retail malls and educational buildings. The company is a recognized brand in the industry and has a strong presence in Mumbai. The company is ranked third in terms of new launches and sales in Mumbai with around market shares of 2.33% and 2.46%, respectively, between January 2023 and March 31, 2026. Between January 2023 and March 2026, Mumbai was ranked first among the top seven Indian residential real estate markets (i.e., Mumbai, Pune, Bengaluru, Hyderabad, Delhi National Capital Region, Chennai and Kolkata) in terms of its contribution to market activity, accounting for around 24% of the overall sales, around 24% of the overall new launches and overall sales value in India.

In the eastern suburbs submarket of Mumbai (which encompasses Mulund, Vikhroli, Ghatkopar, Kanjurmarg, Powai and Bhandup), it ranked first in sales accounting for around 7.88% of the sales, and fourth in new launches, accounting for around 2.89%, between January 2023 and March 31, 2026. The company is ranked first in terms of new launches and second in terms of sales in Kalyan, Dombivli, with approximate market shares of 11.41% and 6.33%, respectively, between January 2023 and March 31, 2026. 

As of March 31, 2026, the company has 19 Completed Projects, 28 Ongoing Projects and 33 Upcoming Projects. Its experience includes greenfield projects requiring land acquisition, as well as flexible models and asset light models such as via joint development agreements (JDA). Greenfield projects refer to developments undertaken on land parcels that have never been previously used, developed or constructed upon for residential dwelling purposes. For such projects, it acquires the greenfield land, obtain all necessary regulatory, statutory and environmental approvals required under applicable laws and it subsequently plans, designs and develops the project, including undertaking construction and related activities.

Proceed is being used for: 

• Repayment/ pre-payment, in full or in part, of certain outstanding borrowings availed by the company
• Investment in its wholly owned Material Subsidiaries namely Runwal Residency Private Limited and Evie Real Estate Private Limited, for repayment/ pre-payment, in full or in part, of all or a portion of certain of their outstanding borrowings
• Funding acquisitions of future real estate projects and general corporate purposes

Industry overview

India’s real estate sector has been a cornerstone of the economy, consistently contributing over 7% to the overall Gross Value Added (GVA) in the past decade. The sector has undergone a significant transformation over the last two decades, driven by technological advancements, a maturing investment landscape, and regulatory reforms. As CY 2020 approached, the industry was poised for growth after navigating through disruptions such as demonetization, GST implementation, RERA, and the NBFC crisis. However, the COVID-19 pandemic and subsequent nationwide lockdown disrupted this momentum, causing turmoil in the markets and distress in the realty industry.

The current residential sector is well-positioned for continued expansion characterized by a solidifying foundation, favourable macroeconomic conditions, rapid urbanization, and rising household incomes resulting in a strong affinity for homeownership among prospective buyers. Despite the general elections and accelerating home prices in CY 2024, the market demonstrated a strong undercurrent of demand, with record sales volumes achieved in CY 2024. RBI’s cumulative 125 bps repo rate reduction in CY 2025 translated into lower home loan rates, reducing EMI burdens and expanding affordability to boost property sales. Sales volumes reached a healthy 287,433 units in CY 2025, though this reflected an 11% Y-o-Y decline from the record levels of CY 2024. Despite a temporary moderation observed during Q1 2026, it anticipates sales momentum to improve in subsequent quarters as property prices stabilize and buyers adjust to current market conditions.

With the fundamentals in place, the market is estimated to witness healthy momentum during CY 2026 and medium term (2027-2028F) driven by strong developer confidence reflected in launch activity, enhanced access to housing finance and sustained demand for quality housing. Moreover, strategic land acquisition in prime locations and along growth corridors is expected to strengthen the supply of residential properties across cities. Established developers are anticipated to explore new markets to diversify their portfolio and broaden their market reach. Additionally, the launch of diverse product offerings such as plotted developments, low-rise apartments, row houses, and villaments is expected to gain momentum. 

Pros and strengths 

Prominent residential real estate developer in Mumbai: The company is ranked third in terms of new launches and sales in Mumbai with approximate market shares of 2.33% and 2.46%, respectively, between January 2023 and March 31, 2026. The company has completed 12 residential projects within Mumbai comprising 11.55 million square feet of Developable Area. These projects are designed with various amenities and facilities which include fitness centres, swimming pools, indoor games areas, badminton and tennis courts, amongst others. With respect to its ongoing residential projects, the company has 17 Ongoing Projects within Mumbai as of March 31, 2026 comprising 18.11 million square feet of Developable Area and it has 19 Upcoming Projects in its residential portfolio comprising an Estimated Developable Area of 20.46 million square feet.

Well-established brand: For the past decade, the company and group, promoted by Subodh Subhash Runwal, has built on the legacy of its predecessor “Runwal group” brand, which has been a prominent name in the real estate industry since its inception in 1978. The group has carried forward this foundation, delivering marquee projects such as Runwal Bliss, Runwal Gardens and Runwal My City. Notably, the launch of approximately 5,875 residential units between January 2023 and March 31, 2026, has demonstrated its ability to meet the housing needs of a wide range of buyers across various segments and with 6,309 units sold within this period, it has solidified its position as one of the largest and most trusted residential real estate developers in Mumbai.

Robust pipeline of ongoing projects: The company has a robust pipeline of Ongoing Projects and Upcoming Projects which provides it with strong visibility over future cash flows. As of March 31, 2026, the company is executing Ongoing Projects with an aggregate Developable Area of 19.88 million square feet and have Upcoming Projects with an aggregate Estimated Developable Area of 56.41 million square feet. These projects are located in the micro-markets of the eastern, northern, western and central suburbs of Mumbai, and near Alibaug, outside of the Mumbai Metropolitan Region.

Ability to sell at premium pricing and throughout the construction phase: The company’s status as a renowned developer enables it to command premium pricing in some of the micro markets in Mumbai, such as Kanjurmarg and Mulund. This is consistent with the shift in consumer preference towards branded developers since the COVID-19 pandemic. This growing preference is evident in: (i) homebuyers showing a stronger preference for investing in projects developed by established developers with a proven track record; (ii) lenders focusing on tier 1 developers with a well-established track record, aiming to minimize the risk of default; and (iii) landowners increasingly opting to partner exclusively with Grade A developers.

Risks and concerns

Concentration of projects in Mumbai: As of March 31, 2026, 66.65% of the company’s real estate development projects were located in Mumbai. Consequently, it faces risks stemming from economic, regulatory and other changes, including natural disasters in these areas affecting the performance of the real estate market in Mumbai, which might adversely impact its business, results of operations, cash flows and financial condition.

Risks of project delays and cost overruns: As of March 31, 2026, it had 28 Ongoing Projects and 33 Upcoming Projects which consists of 86.33% of its total developable Area. Failure to complete these projects or future projects within their expected timelines, or at all, and any cost overruns could adversely affect its business, reputation, financial condition and results of operations.

Project approval and licensing risk: The development plans for all of its 33 Upcoming Projects are still pending finalization and approval. Any difficulties in fulfilling certain conditions precedent in respect of its projects, and any delay or failure to obtain required approvals or renewal of approvals may require it to reschedule its Ongoing Projects and Upcoming Projects which may have an adverse effect on its operations. Further, the company has to stop the construction activity in the event of withdrawal of such licenses/approval.

High capital requirements and financing risk: The company’s business is highly capital-intensive, necessitating significant expenditure for land acquisition and development. Consequently, it relies substantially on the availability of real estate financing, which might not always be accessible on terms favorable to the company, if at all, in a timely manner.

Outlook

Runwal Enterprises is a real estate developer with a presence across the full spectrum of real estate development, with a focus on residential projects across affordable, mid-income and luxury segments, along with commercial spaces, retail malls and educational buildings. The company has robust pipeline of ongoing and upcoming projects. It has well-established brand and strong market presence. On the concern side, the company has several ongoing and upcoming projects, making timely execution critical to its operations. Any delays in project completion or cost overruns could adversely affect its business, financial condition and results of operations. Moreover, the company is significantly dependent on third party vendors and suppliers to provide it the construction supplies. Any failure in procuring such construction supplies or any breakdown of its relations with its vendors and suppliers could adversely affect its business, results of operations and financial condition.

The issue has been offering 1,72,47,500 shares in a price band of Rs 290-305 per equity share. The aggregate size of the offer is around Rs 500.18 crore to Rs 526.05 crore based on lower and upper price band respectively. Minimum application is to be made for 49 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operations increased by 78.51% from Rs 10,077.66 million for Fiscal 2025 to Rs 17,989.49 million for Fiscal 2026. Moreover, the company has achieved a restated net profit of Rs 1,857.63 million for Fiscal 2026 as compared to a net profit of Rs 556.48 million for Fiscal 2025.

Meanwhile, the company is focusing on real estate development in Mumbai to leverage several strategic advantages. The real estate market in this region presents significant barriers to entry, such as limited land availability and restricted capital access for unorganized developers, which favour experienced developers with established business operations. It has successfully completed numerous projects in areas such as the south central and peripheral central suburbs. Currently, its business development pipeline is expanding into south Mumbai and the western suburbs, supported by several ongoing infrastructure projects aimed at long-term sustainability and enhancing the transportation network’s capacity and quality. Notably, key infrastructure developments include the Mumbai Metro Network, an initiative designed to alleviate road congestion by connecting major financial hubs and providing efficient transport and the Navi Mumbai International Airport, anticipated to drive economic growth and augment demand for real estate. Additionally, the ongoing construction of the Coastal Road, linking Bandra to Kandivali, promises to enhance connectivity and boost the appeal of sea-facing properties in western Mumbai, thereby propelling the region's real estate market.