“Arkade Developers IPO Soars with 43x Subscription on Day 4 – Huge Retail and Investor Demand! Check GMP and Key Details
The initial public offering (IPO) of Arkade Developers, which started on September 16, has been subscribed 42.7 times by Thursday afternoon, the final day for bidding. Around 1 pm, there was strong demand, especially from non-institutional investors and retail investors, with the issue subscribed over 100 times by non-institutional investors and 42 times by retail investors. Qualified institutional buyers (QIBs) subscribed to 90% of their portion.
GMP and Price Band
Before the IPO began, the grey market premium (GMP) for Arkade Developers was ₹85, indicating a 66% premium over the upper price band of the issue. The price band is set between ₹121 and ₹128 per share, and investors can bid in lots of 110 shares.
IPO Details and Review
The IPO is a complete fresh issue of ₹410 crore worth of equity shares. Of this, 50% is reserved for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors.
Analysts recommend subscribing to the IPO due to Arkade Developers’ strategic focus on Mumbai’s growing real estate market, particularly in the city’s eastern suburbs. Arihant Capital gave a “Subscribe” rating, expecting the company’s financial growth to be supported by upcoming projects and its business model. Post-issue, the company trades at 14.46x EV/EBITDA (FY24).
Use of Funds
The company plans to use the funds raised from the IPO for the development of current and future real estate projects, and for general corporate purposes.
About Arkade Developers
Arkade Developers is a major real estate company focused on building premium residential properties in Mumbai. As of June 2024, the company has completed 2.2 million square feet of residential projects, including those built through partnerships.
The company is known for developing high-end residential projects with a focus on modern design and lifestyle features. Their current ongoing projects include Arkade Nest, Arkade Crown, Arkade Aspire, Arkade Prime, and Arkade Aura.
In FY24, Arkade Developers’ revenue grew by 189% year-on-year to ₹635 crore, with net profit more than doubling to ₹123 crore.
Unistone Capital is the sole book-running lead manager (BRLM) for this issue, and the company’s shares will be listed on the BSE and NSE.
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