Arkade Developers IPO Highlights: The initial public offering (IPO) of Arkade Developers, a real estate development company, has garnered strong demand from investors. The bidding period for the IPO ran from September 16 to 19, and the allotment status has now been finalised. The shares are set to be credited to the demat accounts of successful bidders on September 23, with refunds issued to rejected applicants on the same day. The IPO listing date is scheduled for September 24. The basis of allotment for the Arkade Developers IPO was established today. Investors can check their allotment status online via the BSE website or the official portal of the IPO registrar, Bigshare Services.
Prior to the IPO, the company’s promoter held 85.58% of the shares. Following the IPO, the promoter's shareholding will decrease to 70.82%.
Bidding for the Arkade Developers IPO opened on September 16, 2024, and closed on September 19, 2024. The share allotment was finalised on Friday, September 20, 2024.
Investors can now check the allotment status for the Arkade Developers IPO by following these steps:
- Click the allotment status check button provided.
- Select "Company Name."
- Enter your PAN number, Application Number, or DP Client ID (any one).
- Click on "Search."
- If shares are allotted, they will be credited to your Demat account
Arkade Developers Ltd secured Rs 122.40 crore from anchor investors ahead of its initial public offering. On Tuesday, the company set the price band at Rs 121-128 per share for its Rs 410-crore IPO.
A total of 2,23,12,500 shares were offered in the Arkade Developers IPO. Of these, 63,75,000 shares were allocated to Qualified Institutional Buyers, 1,11,56,250 shares (50% of the total) were reserved for Retail Individual Investors, and 47,81,250 shares were offered to Non-Institutional Investors.
The IPO size is Rs 410 crores as a book-build issue, with a face value of Rs 10 per equity share. Prior to the IPO, promoters held 85.58% of the shares, which reduced to 70.82% post-issuance. The lot size for the IPO application is 110 shares per lot, with an issuance price range between Rs 121 and Rs 128.
The estimated listing price is Rs 189, reflecting a 47.66% rise from the initial IPO price of Rs 128, as of 3:27 PM on September 20, 2024. The highest estimated listing price to date was Rs 214 on September 16 and 17.
Between 2017 and the first quarter of 2023, Arkade has launched 1,040 residential units and sold 792 of them across various markets in the Mumbai Metropolitan Region (MMR) in Maharashtra.
Investors can now check the allotment status for the Arkade Developers IPO by following these steps:
-Click the allotment status check button provided.
-Select "Company Name."
-Enter your PAN Number, Application Number, or DP Client ID (any one of these).
-Click on "Search."
-If you are allotted shares, they will be credited to your Demat account.
Arkade Developers' IPO has a current gray market premium (GMP) of Rs 63 as of September 21, 2024, at 1:26 PM. With a price band set at Rs 128, the estimated listing price is projected to be Rs 191 (calculated as the cap price plus today’s GMP). This indicates an expected gain of approximately 49.22% per share upon listing.
Proceeds from the issue of Arkade IPO will be used to develop both ongoing and upcoming projects, fund the acquisition of future real estate ventures, and cover general corporate expenses.
The initial share sale opened for public subscription on September 16 and closed on September 19. According to a regulatory filing, the company has allocated 9,562,500 shares to anchor investors at Rs 128 per share, totaling Rs 122.40 crore.
The initial share sale of Arkade Developers was subscribed 106.40 times on its final day, on Thursday. The Rs 410-crore offering received bids for 25,297,382,200 shares, compared to the 2,377,571 shares available, according to NSE data.
The company is set to be listed on the BSE and NSE on September 24, according to the tentative schedule. The IPO price band is set between Rs 121 and Rs 128 per equity share, with a minimum investment for retail buyers at Rs 14,080 for a lot of 110 shares. Read how to check your allotment status.
Arkade Developers reported revenues of Rs 224.01 crore in FY2023, Rs 237.18 crore in FY2022, and Rs113.18 crore in FY2021.
Arkade Developers is a rapidly expanding real estate development company with a strong presence in Mumbai. As of July 31, 2023, the company has developed 1.80 million square feet of residential properties, including those through partnerships where Arkade holds a majority stake. Between 2017 and the first quarter of 2023, the company launched 1,040 residential units and successfully sold 792 units across various markets in the Mumbai Metropolitan Region (MMR) in Maharashtra.
The initial public offering (IPO) is entirely a fresh issue of equity shares valued at Rs 410 crore, with no offer-for-sale (OFS) component. Brokerage firms have estimated the company's valuation to exceed Rs 2,300 crore after the issue. Proceeds from the IPO will be allocated to the development of ongoing and upcoming projects, funding future real estate acquisitions, and covering general corporate expenses.
The investors Among the investors are BNP Paribas Financial Markets—ODI, Societe Generale—ODI, and Saint Capital Fund.
Arkade Developers had secured Rs 122.40 crore from anchor investors ahead of its initial public offering (IPO). The company set a price band of Rs 121 to Rs 128 per share for its Rs 410-crore IPO, which opened for public subscription from September 16 to September 19. According to a regulatory filing, Arkade Developers has issued 9,562,500 shares to anchor investors at Rs 128 per share, totaling Rs 122.40 crore.
-Bidding dates: 16-19 September
-Lot Size: 110 shares
-Price Range: Rs 121-128 per share
-Issue size: Rs 410 crores
The initial public offering (IPO) of real estate development company Arkade Developers saw robust demand from investors. The bidding period has closed, and the IPO share allotment has been finalized. The IPO was open for subscription from September 16 to 19, and the listing date is set for September 24.
Here are the important dates related to the Arkade Developers IPO (subject to change based on conditions):
IPO Opening Date: 16 September 2024
IPO Closing Date: 19 September 2024
Basis of Allotment Finalization: 20 September 2024
Refund Initiation: 23 September 2024
Credit of Shares: 23 September 2024
IPO Listing Date: 24 September 2024
Arkade Developers' IPO was oversubscribed by 114 times, with the retail segment alone being subscribed 54 times. The IPO achieved full subscription on its very first day.
Anand Rathi Research has assessed Arkade Developers in its IPO note, indicating that at the upper price band, the company is targeting a price-to-earnings (PE) ratio of 19.3 and a price-to-book value (P/BV) of 3.2. This would lead to a post-issue market capitalization of Rs 2,376 crore, which the firm views as fairly priced. With strong growth prospects and stable financials, Arkade is positioned to benefit from the expanding real estate market in Mumbai. Anand Rathi suggests a long-term subscription to the IPO.
In FY24, the company achieved an earnings per share (EPS) of Rs 6.56, which is lower than its peers, including Keystone Realtors, with a minimum EPS of 9.8. Despite this, the company saw impressive sales growth of 188% in FY24, a significant recovery from a decline of 3.8% in FY23. The company's price-to-earnings (P/E) ratio stands at 19.3 times, indicating a competitive position relative to others in the market.
The size of the issued IPO is Rs 410 crores as Book-build issue, with a face value of Rs 10 per equity share. Before the IPO issuance promoters had a holding of 85.58 per cent of shares and 70.82 per cent shares after IPO issuance. The lot size is 110 shares per lot to apply for the IPO. The issuance price of the IPO was from Rs 121 to Rs 128.
Arkade Developers IPO witnessed oversubscription from the beginning of IPO issuance. The IPO saw 113.49 times of subscription till September 19. However, the start was bit slow as 6.31 times subscription on september 16; 17.41 times on september 17 and 31.73 times on september 18.