Arkade Developers IPO Day 1; GMP, subscription status, key dates, review, other details: A retail investor needs to apply for a minimum of 110 shares or one lot that costs Rs 14,080.
Arkade Developers IPO Day 1: The company opened the IPO for bidding to investors on September 16 and will close on September 19. The company will raise Rs 410 crore via fresh capital. The company kept the IPO price band in a range of Rs 121 to Rs 128 per equity share. A retail investor needs to apply for a minimum of 110 shares or one lot that costs Rs 14,080.
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Arkade Developers GMP
The company’s shares were attracting a grey market premium of almost 63%. The grey market is an illegal market where shares change hands, without regulation.
Arkade Developers Allotment
The share allotment is likely to be finalised by September 20. The listing will likely be on NSE and BSE on September 24, as per the tentative schedule.
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About Arkade Developers
The company is a real estate developer, focused on developing high-end and sophisticated lifestyle residential developments in Mumbai. The company not just only develops/constructs residential buildings on acquired lands but also redevelops existing buildings.
BRLM and Registrar
Unistone Capital was the book-running lead manager of the IPO, while Bigshare Services was the registrar for the issue.
Objective Behind IPO
According to the company, the raised funds will be utilised to fund part of the costs to be incurred in developing the Ongoing Projects (viz. Arkade Nest, Prachi CHSL, and C-Unit) (Funding Development Expenses). Also, some part of the raised proceeds will be used to fund the acquisition of yet-to-be-identified land for real estate projects and general corporate purposes.
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Expert’s Take on IPO
“The company is focused on mid-tier residential realty projects on both new and redevelopment segments in the suburban Mumbai MMR region. Despite being in the capital-intensive sector the company has very limited long-term borrowings since its projects are financed through internal accruals and promoter equity. Given these factors, the company’s exposure to a niche realty segment is well positioned against the most expensive real estate markets. For FY24 Arkade is seeking a PE of 19.3 times and P/BV of 3.2 with a market capitalisation of Rs 2,376 crore post-issue which seems the issue fairly priced. Therefore, considering business growth visibility and stable financial performance the company is well placed to tap in rising Mumbai’s real estate sector we recommend a “Subscribe for Long Term” to the IPO,” said Anand Rathi Research in an IPO note.
