Arkade Developers is launching its initial public offering (IPO) today, and it will be open for subscription until September 19. Before the IPO, the company secured ₹122 crore from anchor investors. The total IPO is valued at ₹410 crore, with 50% of the shares reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.
IPO Price and Lot Size
The price for Arkade Developers shares is set between ₹121 and ₹128 each. Investors can bid for shares in lots of 110.
Grey Market Premium (GMP)
In the grey market, Arkade Developers shares are trading at a premium of ₹70, which is 54% higher than the issue price.
IPO Review
Analysts recommend subscribing to the IPO. They believe Arkade Developers is well-positioned to benefit from the growing demand for real estate in Mumbai, especially as urbanization accelerates.
“Arihant Capital notes that the company is expected to grow due to its new projects and focus on Mumbai’s eastern suburbs. The company’s post-issue valuation is 14.46 times its EV/EBITDA for FY24. We suggest subscribing to the IPO,” the firm stated.
Additional Information
Arkade Developers plans to use the funds from the IPO to develop ongoing and future real estate projects and for general corporate purposes. The company is a major player in the Mumbai real estate market, focusing on high-end residential projects with modern amenities.
By June 2024, Arkade Developers had completed 2.2 million square feet of residential space. Its revenue for FY24 surged by 189% to ₹635 crore, and net profit more than doubled to ₹123 crore.
Unistone Capital is the sole Book Running Lead Manager for this IPO, and the shares will be listed on both BSE and NSE.
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