Arkade Developers IPO: A Stellar Market Debut
Shares of Arkade Developers, a rising star in the real estate sector, have made an impressive entrance into the stock market. The company’s Initial Public Offering (IPO) was met with overwhelming enthusiasm, garnering over 113 times the total bids during the subscription period. This remarkable response showcases investor confidence in Arkade Developers and its future growth prospects.
Listing Performance and Investor Gains
The IPO, which was priced at ₹128 per share, saw its debut on the Bombay Stock Exchange (BSE) at ₹175.90 and on the National Stock Exchange (NSE) at ₹175.00. This translates to an approximate listing gain of 37 percent for initial investors. Following the listing, the share price climbed even higher, reaching ₹179.50 on the BSE, which indicates a profit of about 40.23 percent for those who participated in the IPO.
Details of the IPO
Arkade Developers’ IPO was open for subscription from September 16 to 19, 2023, and raised a total of ₹410 crore. The enthusiastic response was evident across various investor categories, with qualified institutional buyers (QIBs) subscribing 172.60 times, non-institutional investors (NIIs) 172.22 times, and retail investors 53.78 times. A total of 32,031,250 new shares were issued, each with a face value of ₹10. The funds from this IPO will be utilized for financing ongoing projects, acquiring land, and fulfilling general corporate objectives.
Company Overview
Founded in Mumbai, Maharashtra, Arkade Developers specializes in new construction and the redevelopment of residential properties. Over the years, the company has successfully launched 1,220 residential units between 2017 and March 2024, with 1,045 of these sold. In its two-decade journey, Arkade Developers has completed 28 projects, including 11 independently and 2 through partnerships. Additionally, the promoter has completed 8 projects under Arkade Creations and 9 more through joint development agreements.
Financial Performance
Arkade Developers has demonstrated significant financial growth, reflected in its net profits over recent fiscal years. The company’s net profit stood at ₹50.84 crore in FY 2022, slightly decreasing to ₹50.77 crore in FY 2023, before surging to ₹122.81 crore in FY 2024. Revenue has also seen remarkable growth, with a compound annual growth rate (CAGR) exceeding 63 percent, reaching ₹635.71 crore.
Future Prospects
The phenomenal response to Arkade Developers’ IPO coupled with its strong financial performance and expansive project pipeline signals a bright future for the company. As it continues to innovate and deliver quality residential solutions in Mumbai, investor confidence is likely to remain high.
