Arkade Developers Highlights: Arkade Developers has launched an initial public offering (IPO) valued at Rs 410 crores, consisting entirely of a fresh issue of 3.2 crore shares. The bidding period for the IPO ran from September 16 to September 19, 2024, with the allotment finalised on September 20, 2024. Shares from the Arkade Developers IPO are set to be listed on both the BSE and NSE, with a tentative listing date of September 24, 2024. The price band for the IPO is set between Rs 121 and Rs 128 per share. Retail investors must apply for a minimum lot size of 110 shares, which requires an investment of Rs 14,080. Unistone Capital Pvt Ltd is serving as the book-running lead manager for the IPO, with Bigshare Services Pvt Ltd acting as the registrar.
Since 2017, Arkade has launched 1,220 residential units and sold 1,045 units across various markets in the Mumbai Metropolitan Region (MMR) through Q1 2024. Strategically positioned in Mumbai—one of India's largest and priciest real estate markets—the MMR has recorded the highest annual sales share of residential units among the top seven cities in India, ranging from 29 per cent to 33 per cent from Calendar year 2021 to Q1 2024.
The Funding raised through IPO will cover costs associated with developing ongoing projects such as Arkade Nest, Prachi CHSL, and C-Unit (referred to as Funding Development Expenses). Additionally, it will be used for acquiring unidentified land for future real estate projects and for general corporate needs.
The total number of shares offered were 2,23,12,500. The shares were allocated to different categories suchas Qualified Institutional Buyers were offered 63,75,000 shares and Non-Institutional investors (NII) 47,81,250. The small NII were offered 15, 93, 750 shares and Big NII were offered 31, 87, 500 shares. The retail investors were allocated 1,11,56,250 shares.
Arkade Developers has assets worth Rs 575.01 crores with a revenue of Rs 635.71 crores till March 31, 2024. The company has total net worth of Rs 323.4 crores with profit after tax Rs 122.81. The reserves and surplus is Rs 171.4 crores March 31, 2024. The total borrowing is Rs 69.41 crores till March 31, 2024.
Total 9,562,500 share were offered to the Anchor investors that helped to raise Rs 122.40 crores. The bid date was September 13, 2024. The Anchor lock in period end date for 50 per cent (30 days) is October 20, 2024. The Anchor lock in period end date for remaining shares (90 days) December 19, 2024.
Since the allotment of Arkade developers IPO on 20 september 2024. The Grey Market Premium (GMP) price is stable at Rs 63 with IPO price at Rs 128 and estimated listing price Rs 191 which is an increament of 49.22 per cent from the IPO price. The given price are stable till today on septmeber 23, 2024.
The minimum lot that a retail investor can apply for is 1 (110 shares) amounting to Rs 14,080. The retail investor can apply for a minimum one lot of 110 shares amounting to Rs 14,080 and maximum of 14 lots which is 1540 shares equivalent to Rs 197,120. Small HNI’s can apply for minimum 15 lots (1650 shares) and maximum 71 lots (7810 shares) amounting to Rs 211,200 and Rs 999,680 respectively. However, the Big HNI’s can bid for a minimum 72 lots ( 7920 shares) equals to Rs 1,013,760. The issue price band lies between RS 121 to Rs 128.
The NSE Code for Arkade Developers is 'ARKADE'. The market lot size is of 110 shares per lot and one lot amount to be Rs 14,080. The minimum amount for small HNI (2-10 lakhs) with 1650 shares almost 15 lots is Rs 211200. The minimum amount for big HNI (10+ lakhs) with 7920 shares almost 72 lots is Rs 1013760.
The allotment status of Arkade developers IPO can be checked through BIG Share services. In the first step, applicant has to provide the the compay name in which they have applied for the IPO. In the second step applicant has to provide the any one of the three details of Application no./CAF No., Beneficiary ID or PAN Number. In the third step click on 'Search' after filing captcha.
The share holding before the IPO issuance was 153,626,016 and the share holding post IPO issuance is 185,657,266. Total 32,031,250 shares were freshly issued which is equivalent to total issued shares.
The share holding of Arkade developers IPO pre-issue was 153,626,016 and the share holding post issue is 185,657,266. The fresh issue is 32,031,250 shares which is equavalent to total shares issued for the Arkade developers IPO.
Arkade Developers IPO was Issued on 16 september 2024 and it was closed on september 19. The basis of IPO allotment started on 20 september. The date for refund initiation and credit shares to demat shares same date, 23 september. The tentative date for IPO listing is 24 september 2024.
Arkade Developers IPO was subscribed to a total of 113.49 times. The retail segment was booked almost 54 times more than the offered shares. While the non-institutional investors subscribed to the issue 172.22 times.
The shares of Arkade Developers will be credited to the D'Mat accounts of allottees on September 23. The allotment of shares was finalised on September 20. Also, the refund will also be initiated on September 23.
Arkade Developers will list on Tuesday, September 24, with two other companies, Northern Arc Capital and Western Carriers. Northern Arc opened and closed its IPO on similar dates as Arkade Developers, but Western opened on September 13 and closed on the same date.
Shares of Manba Finance were fetching a premium of 50% in the grey market. It is an unofficial place where shares trade illegally ahead of listing. Market participants keep an eye on GMP to track listing gains.
Shares of Arkade Developers were fetching a premium of more than 49% in the grey market. Meanwhile, the stocks of Norther Arc Capital were attracting a grey market premium of almost 55%.
The company will open the issue to the investors on September 23. Manba Finance will collect Rs 150.84 crore in fresh capital. The company kept the IPO price band in a range of Rs 114 -120 per equity share. The company will close its IPO on September 25. A retail investor needs to apply for a minimum of Rs 15,000.
The company opened its IPO to investors on September 13 and closed on September 19, along with Arkade Developers. The company has an earnings per share of a bit over 10, which is below its peers. It has a P/E ratio of 16.85x, compared to 46.4x of Container Corporation of India. Also, Western Carriers have the lowest P/B ratio of 3.4x compared to industry peers.
It's going to be a busy day at the exchanges on September 24. Three new companies will debut on NSE and BSE. They include Arkade Developers, Northern Arc and Western Carriers. All the three IPOs saw robust response and the allotment for the three are finalised.
Read Here For Details: Arkade Developers, Northern Arc, and Western Carriers set to list on September 24; Here are key details on IPO allotment, GMP
Arkade Developers is set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tentative listing date has been scheduled for Tuesday, September 24, 2024.
1. Go to the BSE website using this link: [BSE Allotment Status](https://www.bseindia.com/investors/appli_check.aspx).
2. Select ‘Equity’ under the ‘Issue Type’ dropdown.
3. From the ‘Issue Name’ dropdown, choose ‘Arkade Developers Limited.’
4. Enter your Application Number or PAN.
5. Complete the CAPTCHA by ticking ‘I am not a robot,’ then click ‘Search.’
Your Arkade Developers IPO allotment status will appear on the screen.
The proceeds from the Arkade IPO will be allocated to the development of ongoing and upcoming projects, financing future real estate acquisitions, and covering general corporate expenses.
Between 2017 and the first quarter of 2023, Arkade Developers launched 1,040 residential units, selling 792 of them across different markets in the Mumbai Metropolitan Region (MMR), Maharashtra.
On the valuation front, Anand Rathi research said, at the upper price band, For FY24 Arkade is seeking PE of 19.3 times and P/BV 3.2 with market capitalization of 23760 Mn 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.
In its report Anand Rathi said, Arkade Developers, a prominent player in Mumbai is a rapidly expanding real estate development company. The company is focused on mid-tier residential realty projects on both new and redevelopment segments in suburban Mumbai MMR region. Despite being in the capital intensive sector the company has very limited long-term borrowings since its projects are financed through internal accruals and promoter equity. Given these factors the company’s exposure to a niche realty segment is well positioned against the most expensive real estate markets.
As the Arkade Developers IPO is set to be listed on both the BSE and NSE, with a tentative listing date of September 24, 2024, here are the details of top brokerages who recommended subscribing to the Arkade Developers Limited including SBI Securities, Anand Rathi, Canara Bank Securities etc. Here's the table of what top Securities have recommended.
The highly anticipated Arkade Developers IPO is set to make its debut on September 24 with expected list at Rs 195/ share, following strong investor demand. If you were lucky enough to secure shares, consider booking profits right out of the gate. The initial excitement often pushes prices higher, presenting a prime opportunity to cash in. But don't stop there—keep an eye out for price dips. Savvy investors know that waiting for these moments allows for strategic, long-term gains. Arkade Developers is poised for growth in the booming real estate market, making it a smart addition to your portfolio. Play it smart: profit now, invest for tomorrow.
Arkade Developers Limited saw a revenue increase of 184% and a 142% rise in profit after tax (PAT) for the financial year ending March 31, 2024, compared to the previous year ending March 31, 2023.