Arkade Developers IPO was opened to investors for bidding on September 16. The issue was subscribed to 9.32 times more than the offered shares. On the first day, the issue was subscribed 6.3 times, out of which the retail segment was booked 8.75 times. The issue will stop taking bids from September 19.
Arkade Developers Day 2 GMP
The stocks of the company were attracting a premium of 67% in the grey market. It is an unofficial place where shares trade illegally ahead of listing.
Arkade Developers Price Band
The company set the IPO price band in a range of Rs 121 to Rs 128 per equity share. The company wants to raise Rs 410 crore through fresh capital by selling 3.2 crore shares.
Arkade Developers Day 2 Key Details
The share allotment is expected to be finalised on September 20, while the status of the allotment can be checked on the website of the registrar. The refund will be initiated on September 23. The listing will likely be on NSE and BSE on September 24.
Minimum Investment Requirement
A retail participant needs to apply for a minimum of 110 shares, or a lot, amounting to Rs 14,080. There are different lot sizes for small and big NIIs.
About Arkade Developers
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 the 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.
Expert’s Take on Arkade Developers
“On the valuation front, at the upper price band, Arkade is seeking a PE of 19.3 times and P/BV of 3.2 with a market capitalisation of Rs 2,376 crore post-issue which seems the issue is fairly priced. Therefore, considering business growth visibility and stable financial performance the company is well-placed to tap into Mumbai’s real estate sector. we recommend a “Subscribe for Long Term” to the IPO,” said Anand Rathi Research in an IPO note.
BRLM and Registrar
Unistone Capital is the lead book runner of the issue, while Bigshare Services is the registrar.