Arkade Developers Share Price Update: Strong Market Debut with 37% Premium on September 24, 2024
Arkade Developers made a notable entrance into the stock market, listing its shares at a premium of 37.5% over its IPO price of ₹128 per share. The stock opened at ₹176 on the Bombay Stock Exchange (BSE) and ₹175.90 on the National Stock Exchange (NSE). This debut reflects strong investor interest and confidence in the company, which specializes in premium residential projects in Mumbai.
Main Points
IPO Highlights
Arkade Developers’ initial public offering (IPO) was a significant event, raising ₹410 crore through a fresh issuance of shares. The IPO was fully subscribed, receiving an impressive overall subscription rate of 106.40 times. This high demand indicates strong support from various investor categories:
- Qualified Institutional Buyers (QIBs): Subscribed 163.16 times
- Non-Institutional Investors (NIIs): Subscribed 162.75 times
- Retail Investors: Subscribed 50.65 times
The IPO’s price band was set between ₹121 and ₹128, with the final issue price fixed at the upper limit of ₹128. The strong subscription figures demonstrate robust market sentiment towards Arkade Developers, especially given its focus on high-demand residential properties in prime Mumbai locations.
Grey Market Premium and Expectations
Prior to its listing, Arkade Developers enjoyed a healthy grey market premium (GMP) of approximately ₹63, suggesting an expected listing price around ₹191, which would have represented a remarkable increase of nearly 49.22% from the IPO price. However, upon debut, the actual listing price fell short of these expectations, reflecting a premium of only about 37%.
Financial Performance
Arkade Developers has shown impressive financial growth in recent years. Between FY22 and FY24, the company reported a compound annual growth rate (CAGR) of 40% in revenue and 34% in net profit. Here are some key financial figures:
| Financial Year | Revenue (in ₹ crore) | Net Profit (in ₹ crore) |
|---|---|---|
| FY22 | 228 | 50.8 |
| FY23 | 220 | 50.7 |
| FY24 | 634 | 122 |
This substantial growth underscores the company’s successful strategy in navigating the competitive real estate market.
Use of IPO Proceeds
The funds raised from the IPO will be directed towards several key areas:
- Development costs for ongoing projects such as Arkade Nest and Prachi CHSL.
- Acquisition of land for future projects yet to be identified.
- General corporate purposes to enhance operational efficiency.
These allocations are expected to strengthen Arkade Developers’ position in the real estate sector and support its expansion plans.
Market Reaction and Current Trading Levels
As of mid-morning on September 24, shares of Arkade Developers were trading around ₹172, slightly lower than their opening price but still reflecting positive investor sentiment. The stock reached an intraday high of approximately ₹176.50, indicating volatility typical for newly listed companies.
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.
