Arkade Developers IPO: All You Need to Know About the Latest Market Buzz on September 19, 2024

Arkade Developers IPO is generating significant attention in the financial market. This initial public offering (IPO) has opened for subscription and is attracting investors with its promising prospects. Here’s a detailed look at the key updates and insights regarding this IPO.

Arkade Developers Ltd, a prominent real estate development company based in Mumbai, Maharashtra, announced its plans for an Initial Public Offering (IPO). The IPO aims to raise funds for the company’s ongoing projects and future land acquisitions, offering investors a chance to be a part of Arkade Developers’ growth story.

Arkade Developers Ltd: A Promising Real Estate Player

Arkade Developers is a real estate development company that specializes in the construction of premium residential properties in the Mumbai Metropolitan Region (MMR). As of July 31, 2023, the company has developed over 1.80 million square feet of residential space, including projects developed through partnership entities in which they hold a majority stake. With a focus on both new developments and redevelopment projects, Arkade Developers has launched 1,040 residential units and sold 792 units between 2017 and Q1 FY 2023.

Key Details of Arkade Developers IPO

Arkade Developers IPO Subscription Status

The Arkade Developers IPO was launched on September 16, 2024, and is set to close on September 19, 2024. The IPO has seen a robust response from investors. As of now, it has been subscribed nearly 10 times, with retail investors leading the charge by subscribing 13.14 times and non-institutional investors at 14.6 times. The qualified institutional buyers (QIBs) have also shown interest, with their portion subscribed at approximately 24%.

Arkade Developers IPO Grey Market Premium (GMP)

The grey market premium (GMP) for Arkade Developers shares currently stands at ₹86, indicating a potential listing price of around ₹214 per share if the trend continues. This reflects a 67% premium over the upper price band of ₹128. The GMP is an important indicator as it shows investor sentiment and expected performance post-listing.

Arkade Developers IPO Financial Overview

Arkade Developers IPO Pricing and Allocation

The IPO is valued at ₹410 crore, with shares priced between ₹121 and ₹128 each. The allocation structure is designed to cater to various investor categories: 50% for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. Retail investors can bid for a minimum of 110 shares, requiring an investment of approximately ₹14,080 at the upper price band.

Company Performance

Arkade Developers has demonstrated strong financial growth in recent years. Their revenue figures show a significant increase:

• FY2023: ₹224 crore
• FY2022: ₹237 crore
• FY2021: ₹113 crore

This upward trend indicates a growing demand for residential projects in Mumbai’s competitive real estate market. The company has developed approximately 2.2 million square feet of residential property and aims to use the proceeds from this IPO to fund ongoing and upcoming projects, enhancing their portfolio further.

Market Sentiment and Analyst Recommendations

Expert Opinions

Most analysts recommend subscribing to the Arkade Developers IPO. They highlight that the company’s valuation appears reasonable compared to its peers in the real estate sector. For instance, Arihant Capital mentions that Arkade’s strategic focus on developments in Mumbai’s eastern suburbs positions it well to capitalize on urbanization trends in the region.

Brokerage firms like Marwadi Financial Services also echo this sentiment, suggesting that investors consider this IPO as it offers a solid entry point into a growing real estate market.

Arkade Developers IPO Future Prospects

Arkade Developers plans to utilize the funds raised from this IPO for various purposes including:

• Development of ongoing projects
• Acquisition of future real estate projects
• General corporate purposes

This strategic approach is expected to bolster their market position and drive further growth in revenue and profitability.

Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.