Runwal Enterprises Limited IPO

As of September 30, 2024, 100.00% of our real estate development projects were located in Mumbai. Consequently, we face 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 our business, results of operations, cash flows and financial condition.

As of September 30, 2024, we had 25 Ongoing Projects and 32 Upcoming Projects which consists of 80.61% of our 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 our business, reputation, financial condition and results of operations.

As of September 30, 2024, we had an aggregate of 8,003 unsold units consisting of a total unsold Developable Area of 7.04 million square feet across our Completed Projects and Ongoing Projects. If we are unable to sell our existing or future inventory within our expected timelines or at all, our business, financial condition and results of operations may be adversely affected.

We incurred losses of Rs.(67.39) million and Rs.(509.92) million in Fiscals 2023 and 2022, respectively, and any similar losses in the future may adversely affect our business, financial condition and cash flows.

Most of our Subsidiaries have incurred losses in certain of the periods within in the six months ended September 30, 2024 and Fiscals 2024, 2023 and 2022, and any similar losses in the future may adversely affect our business, financial condition and cash flows.

We had negative cash flows of Rs.(546.64) million in the six months ended September 30, 2024 and Rs.(3,410.66) million in Fiscal 2023 and may continue to have negative cash flows in the future. Any such negative cash flows in the future would adversely affect our cash flow requirements, which may adversely affect our ability to operate our business and implement our growth plans, thereby affecting our financial condition.

Any uncertainty in land acquisition and title could adversely affect our business and growth prospects.

Any difficulties in fulfilling certain conditions precedent in respect of our projects, and any delay or failure to obtain required approvals or renewal of approvals may require us to reschedule our Ongoing Projects and Upcoming Projects which may have an adverse effect on our operations. Further, our Company has to stop the construction activity in the event of withdrawal of such licenses/approval.

Our business is highly capital-intensive, necessitating significant expenditure for land acquisition and development. Consequently, we rely substantially on the availability of real estate financing, which might not always be accessible on terms favorable to us, if at all, in a timely manner.

Our development projects have extended gestation periods, and any delays or cost overruns related to our Ongoing Projects and Upcoming Projects could adversely impact our prospects, business operations and financial results.