Arkade Developers IPO: Key Details and Insights
Arkade Developers Limited is set to launch its much-anticipated initial public offering (IPO) on September 16, 2024, aiming to attract investors with a robust market presence in the real estate sector. The offering will close on September 19, 2024, allowing both institutional and retail investors to participate actively.
IPO Overview
The IPO seeks to raise approximately Rs 410 crores, with a price band established between Rs 121 and Rs 128 per share. According to the latest reports, the grey market premium (GMP) for Arkade Developers’ shares is around Rs 63, representing a significant premium of 49% over the top end of the issue price. Investors can bid for a minimum of 110 shares in one lot, with additional shares available for purchase in multiples of that lot.
Market Position and Capitalization
If the IPO successfully reaches its upper price band, Arkade Developers will command a market capitalization of approximately Rs 2,376 crores. Notably, this IPO consists solely of a fresh issue of shares, lacking an offer-for-sale (OFS) component. The company has already secured Rs 20 crores from a pre-IPO placement, further bolstering its financial positioning.
Allocation Details
In terms of share allocation, Arkade Developers has designated significant portions of the offering for various investor categories:
| Investor Category | Percentage of IPO | Amount (in Rs Crores) |
|---|---|---|
| Qualified Institutional Bidders (QIB) | 50% | 204 |
| Non-Institutional Investors (NII) | 15% | 61 |
| Retail Investors | 35% | 143 |
Utilization of Funds
Arkade Developers plans to utilize the funds raised from this IPO to:
- Complete ongoing projects
- Acquire new real estate projects
- Address other general corporate purposes
Company Background and Growth
With a strong foothold in the Mumbai real estate market, Arkade Developers has showcased impressive growth. As of July 31, 2023, the company has developed 1.8 million square feet of residential properties. Between 2017 and the first quarter of 2023, they launched 1,040 residential units and successfully sold 792 units across various locations within the Mumbai Metropolitan Region (MMR).
Financial Performance
Arkade Developers has displayed steady revenue growth, reporting revenues of:
- FY 2021: ₹113 crores
- FY 2022: ₹237 crores
- FY 2023: ₹224 crores
IPO Timeline
The allotment of shares is expected to occur on September 20, 2024, with the shares listed on both the BSE and NSE on September 24, 2024.
Conclusion
Investors looking to capitalize on the growing real estate market in Mumbai should consider the upcoming IPO of Arkade Developers. With a solid business model, strategic fund utilization, and attractive market positioning, this offering stands as a promising opportunity.
