The initial public offering (IPO) of Arkade Developers will open for subscription on September 16. The issue closes on September 19. Through the public offer, the company plans to raise nearly Rs 410 crore.
Here are 10 things to know about the Arkade Developers IPO before subscribing to the issue.
Read More: Bajaj Auto Shares Hit Record High On Upbeat Sentiments; Zooms 145% In 1 Year
1) What is the business overview of Arkade Developers?
Arkade Developers is a leading real estate development company with a significant presence in Mumbai. Its operations are concentrated on the development of premium aspirational lifestyle residential premises in the region. As of July 31, 2023, it has developed 1.80 million square feet of residential property (including through partnership entities in which Arkade holds the majority stake).
2) What is the industry overview of Arkade Developers?
Mumbai is one of the biggest and most expensive real estate markets in India. It has various micro-markets in Mumbai City, suburbs, extended suburbs and neighbouring areas such as Thane and Navi Mumbai. Between 2017 and 2019, the housing market in MMR witnessed a gradual growth in both supply and absorption of housing units, with absorption numbers surpassing the new residential supply.
3) What is the current GMP of Arkade Developers?
According to market analysts, the current GMP of Arkade Developers is Rs 191, indicating a premium of 49% to the issue.
Read More: SBI Cards shares in news as firm to consider fundraising on Sept 18
4) What is the size of Arkade Developers IPO?
The IPO is entirely a fresh issue of up to 3.23 crore shares and through the issue, the company plans to raise Rs 410 crore.
5) What is the price band for Arkade Developers IPO?
The company has fixed a price band of Rs 121-128 for the public offer, where investors can bid for 110 shares in one lot.
6) What is the structure of Arkade Developers IPO?
About 50% in the public offer is reserved for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.
Read More: Tolins Tyres IPO shares to debut on Monday. What GMP signals ahead of listing
7) How is the financial performance of Arkade Developers?
Arkade Developers revenue in FY24 increased 189% year-on-year to Rs 635 crore, while net profit also more than doubled to Rs 123 crore in the same period.
8) What are the objects of Arkade Developers IPO?
The company proposes to utilise the net proceeds towards development of their ongoing projects, and their upcoming projects and funding acquisition of future real estate projects and general corporate purposes.
9) Who are the book running lead managers for Arkade Developers IPO?
Unistone Capital is the sole book-running lead manager (BRLM) to the issue.
10) When is the share allotment and listing date of Arkade Developers IPO?
The share allotment for the IPO will likely be finalised on September 20 and the company is anticipated to list on stock exchanges on September 24.
