Arkade Developers IPO Day 4: Massive Subscription Surge and Soaring GMP—Should You Invest Now?

The IPO of Arkade Developers, a real estate company, is in its final day of subscription, ending on Thursday, September 19. The company is aiming to raise ₹410 crore through this IPO, which opened on Monday, September 16. The issue has seen strong interest from both retail and non-institutional investors (NIIs). Before the IPO started, Arkade Developers raised about ₹122.40 crore from anchor investors.

IPO Subscription Status

By 10:40 am on September 19, the Arkade Developers IPO had been heavily subscribed. The issue was fully subscribed on the first day and continued to attract interest. On day 4, it was subscribed 35.78 times overall, with the retail portion booked 37.41 times and the NII segment 78.79 times. The Qualified Institutional Buyers (QIB) portion received 0.74 times the bids.

Grey Market Premium (GMP)

As of today, the grey market premium (GMP) for the Arkade Developers IPO is ₹85. This is higher than the GMP of ₹70 before the IPO began. With the upper price band at ₹128 and the current GMP, the estimated listing price of Arkade Developers shares could be around ₹213. This suggests a potential premium of 66.41% over the issue price.

IPO Review

Experts are generally positive about the IPO. Choice Broking recommends subscribing to the issue, noting that the company’s valuation is reasonable compared to its peers. Arkade Developers has been focusing on the western suburbs of Mumbai but has recently expanded into the eastern suburbs as well. Its near-debt-free status and timely project completion are seen as positives.

Anand Rathi also supports the IPO, suggesting it is fairly priced. At the upper end of the price range, the company is looking at a price-to-earnings ratio of 19.3 and a price-to-book value ratio of 3.2. They believe Arkade Developers is well-positioned for growth in Mumbai’s real estate market.

IPO Details

The Arkade Developers IPO aims to raise ₹410 crore through the issue of 3.2 crore shares. The funds will be used for ongoing projects, acquiring land, and general corporate purposes. The price band for the shares is set between ₹121 and ₹128. The issue closes today, September 19, and share allotment will be finalised on Friday, September 20. The stock is expected to list on Tuesday, September 24.