the Arkade Developers IPO is generating significant interest among investors. The company, a prominent player in the Mumbai real estate market, has opened its IPO for subscription from September 16 to September 19, aiming to raise ₹410 crores through this offering. The price band for the shares is set between ₹121 and ₹128, with a minimum lot size of 110 shares.
Main Points
Current Grey Market Premium (GMP)
The Grey Market Premium (GMP) for the Arkade Developers IPO is currently reported at ₹60. This reflects a stable performance since it peaked at ₹80 before the IPO opened. The GMP indicates investor sentiment and expectations regarding the stock’s performance post-listing. Analysts suggest that this premium signifies a potential listing gain of approximately 46.88% based on the upper price band of ₹128.
Key GMP Details
- GMP as of September 17, 2024: ₹60
- Estimated Listing Price: ₹188 (based on the upper price band)
- Subscription Period: September 16 – September 19, 2024
- Tentative Listing Date: September 24, 2024
Subscription Status
On its first day of bidding, the Arkade Developers IPO saw robust demand. Retail investors have subscribed to the issue by approximately 2.15 times, while non-institutional investors have shown a subscription rate of about 1.2 times. However, the qualified institutional buyer segment has lagged behind, attracting only about 3,300 bids against a substantial reserve of shares.
Breakdown of Subscription
- Retail Investors: 2.15 times
- Non-Institutional Investors: 1.2 times
- Qualified Institutional Buyers: Low demand with only a fraction of bids filled
Company Overview
Arkade Developers specializes in high-end residential properties in Mumbai and has completed over 28 projects to date. The company has a strong focus on sustainable development and aesthetic design. Its portfolio includes several gated communities such as Arkade Nest and Arkade Crown.
In FY24, Arkade Developers reported impressive financial growth, with revenues soaring by 189% year-on-year to reach ₹635 crores and net profits doubling to ₹123 crores. This financial performance underscores the company’s robust business model and strategic positioning within the competitive Mumbai real estate market.
Use of Proceeds
The funds raised through this IPO will primarily be allocated towards:
- Development of ongoing and upcoming projects
- Acquisition of new land parcels for future developments
- General corporate purposes
This strategic allocation aims to bolster Arkade’s growth trajectory in an expanding market driven by urbanization and rising demand for quality housing.
Analyst Recommendations
Most analysts have given a ‘Subscribe’ rating for the Arkade Developers IPO. They emphasize that the company is well-positioned to benefit from ongoing urban development trends in Mumbai. The valuation appears attractive compared to peers, making it a potentially lucrative investment opportunity for both short-term gains and long-term growth.
Summary of Analyst Ratings
- Choice Broking: Subscribe
- SBI Securities: Subscribe
- StoxBox: Subscribe
- Arihant Capital Markets: Subscribe
