Arkade Developers IPO Vs Western Carriers IPO: Which IPO should you subscribe? Know allotment, GMP and key risks of each issue

The IPO markets have been hot for quite some time now, last week Bajaj Housing Finance kept D-Street with three IPOs opening on the same day and schedule of listing as well. In the third week of September, there are two big IPOs opened to investors for bidding. 

Arkade Developers IPO

Arkade Developers opened to investors on September 16 and will close on September 19. 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. 

“On the valuation front, 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. 

Western Carriers IPO

The company has a large clientele which includes names like Tata Steel, Hindalco, Jindal Steel, JSW Steel, HUL, Vedanta, etc. and competes with CCI, Mahindra Logistics, and many others. It opened its IPO to investors on September 13 and will close on September 19. 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. 

“The company posted impressive RoE and RoCE figures of 20.17% and 29.23% in FY24, far exceeding its peers, which averaged 15% and 14%, respectively. The company’s RoCE was among the highest in the speciality logistics industry. Valued at an attractive P/E ratio of 16.85x and a P/B ratio of 3.4x, compared to industry averages of 40x and 6x, indicates that the issue is fairly valued. Therefore, we recommend “Subscribe” to this issue for listing gains,” said Canara Bank Securities in a research report. 

Arkade Developers IPO Details

The company’s shares were attracting a premium of 66% in the grey market. It is an unofficial place where shares trade illegally ahead of listing. The allotment of shares is likely to be finalised by September 20. The listing is expected to be on NSE and BSE on September 24.

Western Carriers IPO Details

The company’s shares were fetching a premium of a bit over 14% in the grey market. The allotment of shares is expected to be finalised by September 20. The listing will likely be on NSE and BSE on September 24.