Arkade Developer IPO Overview
On September 17, 2024, the IPO of Arkade Developers garnered significant attention from investors, showcasing a robust subscription rate on its second day. With a total subscription of 16.21 times, this IPO has attracted bids for approximately 38.53 crore shares against an offering of 2.37 crore shares. The company aims to raise around ₹410 crore through this public offering, which is open for subscription until September 19, 2024. The price band for shares has been set between ₹121 and ₹128 per share.
Subscription Breakdown
| Investor Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers (QIBs) | 0.44 times |
| Non-Institutional Investors | 28.27 times |
| Retail Investors | 20 times |
| Employee Reserve | 19.25 times |
| Total Subscription | 16.21 times |
Investment Recommendation
According to a research report from brokerage firm Anand Rathi, investing in the Arkade Developers IPO is encouraged. The firm has issued a “subscribe” rating, citing the company’s potential for growth and its stable financial performance. They believe Arkade Developers is well-positioned to leverage opportunities within the dynamic Mumbai real estate market. Anand Rathi recommends a long-term investment strategy for interested investors.
Fund Utilization
The capital raised through this IPO will primarily be allocated towards the development of both existing and upcoming real estate projects. Additionally, Arkade Developers plans to invest in acquiring new projects and other general corporate purposes. Unistone Capital Private Limited acts as the book-running lead manager for this IPO, while Bigshare Services serves as the registrar to the issue.
IPO Lot Size and Investment Requirements
Retail investors looking to participate in the Arkade Developer IPO need to be aware of the minimum lot size, which is set at 110 shares. Consequently, the initial investment required for retail participation is approximately ₹14,080. The allotment of shares is anticipated to occur on September 20, 2024, with the listing of shares expected on September 24, 2024.
Grey Market Premium (GMP)
The Arkade Developer IPO is experiencing considerable demand in the grey market. As of September 17, 2024, it is trading at a premium of ₹86, indicating a potential listing price of around ₹214 per share. Should this occur, investors could see an impressive profit of approximately 67%.
About Arkade Developers
Arkade Developers Limited is a burgeoning real estate development firm based in Mumbai with a significant market presence. As of July 31, 2023, the company has successfully developed 1.80 million square feet of residential space. From 2017 through the first quarter of FY 2023, Arkade launched a total of 1,040 residential units in the Mumbai Metropolitan Region (MMR) and has successfully sold 792 of these units, highlighting its growing footprint in the competitive real estate sector.
