Invest in Arkade Developers IPO: Open Sept 16th for up to 50% Profit!

Baishakhi Mondal

Published on:

Invest in Arkade Developers IPO: Open Sept 16th for up to 50% Profit!

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.

For Experts Recommendation Join Now

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.

Share This ➥
X