Arkade Developers is poised to make a significant entry into the stock market, with strong expectations surrounding its share performance. The company, a prominent player in the Mumbai real estate sector, has generated considerable buzz ahead of its debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The initial public offering (IPO) was open for subscription from September 16 to September 19 and saw an overwhelming response from investors.
Arkade Developers offered its shares at a price band of ₹121 to ₹128 per share. The IPO was oversubscribed by an impressive 106.83 times, with substantial interest from Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs). These categories alone were subscribed by 163.16 times and 163.02 times, respectively. Retail investors also showed strong participation, with their quota being subscribed 51.39 times.
Main Points
As of today, Arkade Developers’ shares are expected to list at a premium. The grey market premium (GMP) indicates that shares may debut at around ₹191, reflecting a potential listing gain of nearly 50% over the IPO issue price. This robust sentiment is attributed to the strong bidding during the IPO process and positive market conditions. However, it is important to note that the GMP has seen fluctuations; it stood at ₹63 recently but had dropped from ₹86 earlier this month.
Arkade Developers aims to utilize the proceeds from its IPO—approximately ₹410 crore—for various purposes, including funding ongoing projects and acquiring new land for future developments. The company focuses on high-end residential projects in Mumbai, which positions it favorably within the competitive real estate market.
Investors are optimistic about Arkade’s financial health. The company has demonstrated a strong return on equity (ROE) of 61.3%, which is significantly above industry averages. This performance metric suggests efficient management and profitability potential in future projects.
Important Levels to Watch
For investors considering trading Arkade Developers’ shares today, several key levels are crucial:
- Support Level: The initial support level is expected around ₹180. This level could provide a cushion for any downward movements post-listing.
- Resistance Level: The first resistance level might be set at ₹200, where selling pressure could increase as early investors look to realize profits.
- Target Price: Analysts suggest that if momentum continues positively, a target price of ₹220 could be achievable within the first few trading sessions.
Market analysts have generally rated Arkade Developers positively, recommending that investors hold their positions for medium to long-term gains. They believe that the company’s strategic focus on premium residential developments will drive growth in the coming years. Additionally, expansion plans into other regions of Maharashtra are expected to bolster its market presence further.
Shivani Nyati from Swastika Investmart commented on the IPO’s valuation, stating that it appears “competitive and fair,” enhancing its appeal among investors looking for solid returns in a growing sector like real estate
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.
