Arkade Developer IPO Overview
On September 19, 2024, Arkade Developer attracted a significant amount of interest from investors as its initial public offering (IPO) witnessed a remarkable subscription rate of 106.83 times by the closing day. With a total of 254 crore shares bid for against the 2.37 crore shares available, the company aims to raise Rs 410 crore through this public issue, with the share price set in the range of Rs 121 to Rs 128.
Subscription Details
Here’s a detailed breakdown of the subscription data:
| Investor Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers (QIBs) | 163.16 times |
| Non-Institutional Investors | 163.02 times |
| Retail Investors | 51.39 times |
| Employee Reserve | 50.49 times |
| Total Subscription | 106.83 times |
Fund Utilization Plan
The capital raised through this IPO will be strategically utilized in developing both existing and forthcoming real estate projects. Arkade Developer also plans to allocate funds for the acquisition of new projects and for general corporate use. The IPO is managed by Unistone Capital Private Limited, and Bigshare Services is the registrar to the issue.
IPO Lot Size and Investment Requirement
The minimum investment lot for participation in this IPO is fixed at 110 shares, meaning retail investors need to invest a minimum of ₹14,080. Amit Mangilal Jain is identified as the promoter of Arkade Developer. Share allotment post-subscription is anticipated on September 20, and the listing of shares is scheduled for September 24.
Grey Market Performance
Recent reports indicate that Arkade Developer’s IPO is generating considerable buzz in the grey market. As of September 19, the IPO is trading at a premium of Rs 60 in the unlisted market, suggesting that shares could debut at around Rs 188. Should this prediction hold true, investors could experience a substantial profit margin of approximately 47% on their investment.
Company Background
Arkade Developers Limited is an emerging real estate player with a robust presence in Mumbai. As of July 31, 2023, the company has successfully developed 1.80 million square feet of residential space. Since 2017 and up until the first quarter of FY 2023, Arkade has launched a total of 1,040 residential units within the Mumbai Metropolitan Region (MMR) and successfully sold 792 units.
