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.
Total 2,23,12,500 were offered in the Arakade Developers IPO. The shares constitute 63,75,000 shares offered to Qualified Institutional Buyers; Retail Individual Investors with 1,11,56,250 shares, which is 50 per cent of the total and Non-Institutional Investors were offered 47,81,250 shares.
The estimated listing price is Rs 189, with an increase of 47.66 per cent from 128 the initial IPO Price. The price update is till 3:27 PM on September 20, 2024.The highest estimated listing price till now was Rs 214 on September 16 and 17.
Know all the important dates related to Arkade Developers IPO.
Note: Dates can be changed subject to the conditions
Step 1
Go to Bigshare Services website and select the IPO allotment status box on the screen.
Step 2
Fill the required details- company name and Application number, Beneficiary ID, or PAN number (any of the three).
Step 3
Enter the shown captcha and click on the search button.
The latest GMP today for Arkade Developers IPO is Rs 61 on September 20. However the lowest GMP is Rs 0, while the highest GMP was Rs 86 observed on September 17.
Bigshare Services served as the issue’s registrar, and Unistone Capital served as the book-running lead manager for the Arkade Developers IPO. Total Rs 410 crores were raised by selling 3.2 crore of fresh shares.
The brokerage firm Anand Rathi Research in an IPO note said that at the upper price band, for FY24 Arkade is seeking a PE of 19.3 times and P/BV 3.2 with a market capitalisation of Rs 2,376 crore post-issue which seems the issue fairly priced. “Therefore, considering business growth visibility and stable financial performance the company is well placed to tap in rising Mumbai’s real estate sector we recommend a “Subscribe for long term” to the IPO,” said Anand Rathi in a research report,” it said.
The issue of Arkade Developers was subscribed to a total of 114 times more than the offered shares. While the retail segment was booked 54 times. The IPO was fully subscribed on the first-day itself.
The company’s shares were fetching a premium of 48% in the grey market. It is a black market or unofficial place where shares trade illegally ahead of listing. While the GMP of another IPO, Northern Arc Capital, was attracting a premium of 47%.
The company is expected to be listed on BSE and NSE on September 24, as per the tentative schedule. The company kept the IPO price band in a range of Rs 121 to Rs 128 per equity share. The minimum investment for a retail buyer was Rs 14,080, or a lot of 110 shares.
The company’s promoter held 85.58% of the shares before the IPO. After the issue, the promoter’s shareholding will reduce to 70.82%.
On the valuation front, the company had an earnings per share of Rs 6.56 in FY24, compared to its listing peers having a minimum EPS of 9.8, Keystone Realtors. The company’s sales growth rose by 188% in FY24 compared to a negative 3.8% sales growth in FY23. It has a P/E ratio of 19.3 times, which is a good sign as it is below its competitors.
A retail buyer needed a minimum investment of Rs 14,080 by bidding on a minimum lot size of 110 shares. There are different lot sizes for small and big NIIs.