Arkade Developers IPO Opens Monday: Check Dates, GMP, Price Band & Issue Size Before You Subscribe

The Arkade Developers IPO will open for public subscription on September 16 and close on September 19. The company aims to raise nearly ₹410 crore through this offering.

Here are 10 key points to know about the Arkade Developers IPO before subscribing:

1) Business Overview
Arkade Developers is a real estate company based in Mumbai. It focuses on developing high-end residential projects. As of July 31, 2023, the company has developed 1.80 million square feet of residential property, including projects with partnerships where Arkade holds the majority stake.

2) Industry Overview
Mumbai is one of India’s largest and most expensive real estate markets, with various micro-markets in the city, suburbs, and nearby areas like Thane and Navi Mumbai. Between 2017 and 2019, the housing market in Mumbai saw steady growth, with the number of homes sold exceeding the supply of new homes.

3) Current GMP
Market analysts report that the Grey Market Premium (GMP) for Arkade Developers is currently ₹191, which is a 49% premium over the issue price.

4) IPO Size
Arkade Developers plans to raise ₹410 crore through this IPO by issuing up to 3.23 crore new shares.

5) Price Band
The price band for the Arkade Developers IPO is set at ₹121-128 per share. Investors can bid for a minimum of one lot, which consists of 110 shares.

6) IPO Structure
In this IPO, 50% of the shares are reserved for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors (NIIs).

7) Financial Performance
In FY24, Arkade Developers’ revenue grew by 189% year-on-year, reaching ₹635 crore. Their net profit more than doubled to ₹123 crore during the same period.

8) IPO Objectives
The company plans to use the funds raised for developing ongoing and upcoming projects, acquiring new real estate projects, and general corporate purposes.

9) Lead Manager
Unistone Capital is the sole book-running lead manager (BRLM) for this IPO.

10) Share Allotment and Listing Dates
The share allotment for Arkade Developers IPO is expected to be finalised on September 20, and the company is expected to be listed on stock exchanges on September 24.