Arkade Developers Shares Surge 37% on Debut, understand here how the stock may move today
Arkade Developers, a prominent real estate company in Mumbai, made a strong debut on the stock exchanges today, with its shares listing at a premium of around 37% over the IPO issue price. The stock opened at Rs 175 on the Bombay Stock Exchange (BSE), a 36.72% jump from its issue price of Rs 128. On the National Stock Exchange (NSE), the shares are listed at Rs 175.90, reflecting a similar premium of 37.42%.
Despite falling short of some market expectations, the company’s robust performance on listing day indicates solid investor interest. Prior to its debut, Arkade Developers’ shares were trading at a grey market premium (GMP) of Rs 60 per share, suggesting potential listing gains of up to 50% for investors.
The IPO, which was offered at a price band of Rs 121–128 per share, saw overwhelming demand during its subscription period from September 16 to 19. Arkade Developers aimed to raise Rs 410 crore through this offering, which involved the fresh issuance of over 3.2 crore equity shares.
The IPO was oversubscribed by an impressive 113.49 times, highlighting strong interest from various investor categories. The retail portion was subscribed 53.78 times, while the Qualified Institutional Buyers (QIB) and Non-Institutional Investors (NII) categories were subscribed 172.60 times and 172.22 times, respectively.
Arkade Developers Shares: Well-Positioned in Mumbai’s Real Estate Market
Arkade Developers is well-known for its upscale residential projects in Mumbai. The company’s focus on high-end, sophisticated lifestyle developments has struck a chord with investors.
Shivani Nyati, Head of Wealth at Swastika Investment Ltd., commented on the listing, saying, “Arkade Developers made an impressive entry into the stock market, listing at Rs 176 per share, which reflects a 37% premium over the issue price. This robust performance is a testament to the strong investor interest seen during the IPO’s oversubscription of 113 times.”Nyati also highlighted the company’s strong position in Mumbai’s real estate market.
“Arkade Developers is well-positioned with its focus on high-end, sophisticated residential developments in Mumbai. The company’s financial stability and growth potential have clearly struck a chord with investors.”
Experts Recommend Partial Profit Booking, Long-Term Investors May Hold
For investors, experts recommend a cautious approach. “Investors may consider booking partial profits at this level given the strong listing. However, those who believe in the long-term prospects of the company may hold onto their shares with a stop-loss at the issue price of Rs 128,” Nyati added.
Arkade Developers, with its successful listing, has further solidified its position in the market. The company’s future expansion plans remain promising, with the net proceeds from the IPO set to be utilized towards the development of ongoing projects, upcoming projects, and the acquisition of future real estate projects.
Arkade Developers Shares Movements
On the BSE, Arkade Developers shares opened at Rs 175, representing a 36.72% premium over the issue price of Rs 128. The stock touched an intraday high of Rs 190 and a low of Rs 165.50, before closing at Rs 173.35, which is still 35.59% higher than the issue price.
Similarly, on the NSE, the shares are listed at Rs 175.90, a 37.42% premium. The stock witnessed an intraday high of Rs 190 and a low of Rs 165.50, eventually closing at Rs 173.88, up 36.00% from the issue price.
