Introduction
The Arkade Developer initial public offering (IPO) is set to open for subscription on September 16, providing an exciting investment opportunity for both retail and institutional investors. With a target of raising ₹410 crore, this IPO comes with an enticing price band of ₹121-128 per share, which is expected to attract considerable attention in the market. The subscription window will remain open until September 19, making it a critical period for potential investors.
Investment Details
IPO Overview
The Arkade Developer IPO will issue a total of 3.20 crore fresh equity shares. Unlike many IPOs that involve selling existing shares, all proceeds from this offering will benefit the company directly, making it a significant milestone for Arkade Developers as it aims to bolster its financial capacity for future growth.
Utilization of Funds
Funds raised from this IPO will be strategically utilized for:
- Development of ongoing and upcoming real estate projects
- Acquisition of new projects to enhance the company’s portfolio
- General corporate purposes to strengthen operational efficiency
The book-running lead manager for this IPO is Unistone Capital Private Limited, while the registrar to the issue is Bigshare Services.
IPO Lot Size and Minimum Investment
The minimum lot size for the Arkade Developer IPO is set at 110 shares. Consequently, retail investors must invest a minimum of ₹14,080 to participate in this offering. The allotment of shares post-subscription is anticipated to occur on September 20, with the shares expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) by September 24.
Grey Market Premium (GMP)
As of September 15, the Arkade Developer IPO is receiving a strong response from the grey market, indicating high investor interest. The shares are trading at a premium of ₹70 in the unlisted market, suggesting that the listing price could reach approximately ₹198. If this prediction holds true, early investors could realize substantial profits of around 55%, making this IPO an attractive option for profit-seeking individuals.
About Arkade Developers
Arkade Developers Limited is a forward-thinking real estate development company with a strong presence in Mumbai. As of July 31, 2023, the company has successfully developed over 1.80 million square feet of residential space. Between 2017 and the first quarter of FY 2023, Arkade launched 1,040 residential units in the Mumbai Metropolitan Region (MMR), successfully selling 792 of them, which illustrates the demand for their projects and their ability to execute developments efficiently.
Conclusion
Investors keen to participate in the Arkade Developer IPO should act promptly, as the investment window is limited. With a robust growth strategy and positive indications from the grey market, this offering presents a compelling opportunity for those looking to invest in a promising real estate company in an ever-growing market.
