IPO Showdown: Arkade Developers, Northern Arc, or Western Carriers? Which One Should You Bet On This Week?

The third week of September is packed with initial public offerings (IPOs), with around 9 new listings expected to hit the market. The strong demand for IPOs continues, with many public offerings drawing significant interest from investors. In August, IPO fundraising reached a high, with 10 companies raising around ₹17,047 crore, marking the most active period for public offerings since May 2022.

This week, three mainboard IPOs are making headlines: Arkade Developers IPO, Northern Arc Capital IPO, and Western Carriers (India) IPO. The Arkade Developers and Northern Arc Capital IPOs opened on Monday, September 16, and will close on Thursday, September 19. Western Carriers (India) IPO started earlier on Friday, September 13, and will also close on Thursday, September 19, as Wednesday is a bank holiday.

Here’s what market experts have to say about these three IPOs:

Arun Kejriwal, Founder of Kejriwal Research and Investment Services

Arun Kejriwal mentioned that while he’s not very familiar with Arkade Developers’ business, he found their anchor investors promising. However, he expressed some disappointment with the anchor investors for Northern Arc Capital, despite feeling that the company is better positioned than Arkade Developers. Regarding Western Carriers (India), Kejriwal noted that the IPO is small and in a competitive industry. However, he believes all three IPOs will be successful. He ranks Northern Arc Capital as the most favourable, followed by Arkade Developers, and then Western Carriers (India).

Mohit Gulati, CIO and Managing Partner of ITI Growth Opportunities Fund

Mohit Gulati focused on Arkade Developers and mentioned that it’s another real estate company entering the market, which reminds him of the market conditions in 2007. He believes the IPO will be successful, but he wouldn’t recommend holding onto the stock beyond the listing day. According to him, the real estate market, particularly in Mumbai, has slowed down, which could make it hard for Arkade Developers to outperform next year.

For Western Carriers (India), Gulati said that although the company operates with low profit margins, it is well-positioned in the market. He thinks it’s a decent offering and recommends buying into it.

Gulati’s top pick for the week is Northern Arc Capital. He highlighted that the company serves a crucial part of the market, providing access to capital for underserved segments. With strong growth potential and attractive valuations, Gulati believes Northern Arc Capital could become a multi-bagger stock in the future, especially if it keeps its non-performing assets (NPAs) low.

In summary, both experts agree that Northern Arc Capital IPO is the most promising, followed by Arkade Developers and Western Carriers (India).