Last Updated on September 18, 2024 by Wenivesh Team
The Arkade Developers IPO has officially launched, offering investors a fresh opportunity to invest in one of Mumbai’s growing real estate developers. With a focus on premium residential projects, Arkade Developers aims to raise ₹410 crore through this public offering. Here’s a detailed look at the Arkade Developers IPO, its key details, financials, and market sentiment.
Arkade Developers IPO Status
The Arkade Developers IPO is now open for subscription from September 16 to September 19, 2024, with a price band set between ₹121 to ₹128 per share. The minimum lot size is 110 shares, and investors can apply for a maximum of 14 lots. This IPO consists entirely of a fresh issue with no offer-for-sale (OFS) component.
| Key IPO Details | Information |
|---|---|
| Issue Size | ₹410 crore |
| Price Band | ₹121 to ₹128 per share |
| Minimum Lot Size | 110 shares |
| IPO Open Date | September 16, 2024 |
| IPO Close Date | September 19, 2024 |
| Allotment Date | September 20, 2024 |
| Tentative Listing Date | September 24, 2024 |
| Listing Exchange | BSE and NSE |
The proceeds from the Arkade Developers IPO will be used to fund ongoing projects, acquire land for future developments, and for general corporate purposes.
Arkade Developers IPO GMP Today
As of September 18, 2024, the Grey Market Premium (GMP) for the Arkade Developers IPO stands at ₹86. This GMP reflects a strong positive sentiment in the market, indicating that the stock is expected to list at a premium over the issue price.
| Date | GMP |
|---|---|
| September 18, 2024 | ₹86 |
Based on the current GMP, the estimated listing price could be around ₹214, which is a 67.19% premium over the upper price band of ₹128 per share.
Arkade Developers IPO Subscription Details
The Arkade Developers IPO is structured with a 50% allocation for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Investors. On its opening day, the IPO saw significant interest from investors, particularly retail investors, and reports suggest it was oversubscribed within hours.
| Investor Category | Subscription Percentage |
|---|---|
| Retail Investors | 35% Allocation |
| Qualified Institutional Buyers (QIBs) | 50% Allocation |
| Non-Institutional Investors (NIIs) | 15% Allocation |
Investors can apply for a minimum of 110 shares per lot, which amounts to an investment of approximately ₹14,080 at the upper price band. The maximum application allowed is 14 lots or 1,540 shares.
Financials of Arkade Developers
Arkade Developers has shown impressive growth over the years. For FY2024, the company reported a revenue of ₹635.71 crore, marking a 189% increase from ₹224.01 crore in FY2023. Additionally, its net profit for FY2024 was ₹122.81 crore, more than doubling from ₹50.77 crore in FY2023.
| Financial Year | Revenue (₹ crore) | Net Profit (₹ crore) |
|---|---|---|
| FY2024 | 635.71 | 122.81 |
| FY2023 | 224.01 | 50.77 |
| FY2022 | 237.18 | 50.84 |
The company’s return ratios have also been strong, with a Return on Equity (ROE) of 61.3% and a Return on Capital Employed (ROCE) of 48.2% for FY2024, reflecting efficient use of capital and strong profitability.
Key Ratios for FY2024
| Metric | Percentage |
|---|---|
| Return on Equity (ROE) | 61.3% |
| Return on Capital Employed (ROCE) | 48.2% |
Use of Proceeds from Arkade Developers IPO
The funds raised from the Arkade Developers IPO will be utilized for the following purposes:
- Development of ongoing projects: A significant portion of the funds will be used to develop ongoing projects like Arkade Nest.
- Acquisition of land: The company plans to acquire land for future development projects.
- General corporate purposes: The remaining funds will be allocated for corporate operations and further business growth.
Arkade Developers’ Growth Outlook
Arkade Developers is focused on expanding its presence in Mumbai’s premium residential real estate market. The company has developed approximately 2.20 million square feet of residential properties as of Q1 FY25. Arkade has completed 28 projects over the last two decades, establishing itself as a reputable player in the industry.
Project Development Highlights
| Category | Details |
|---|---|
| Total Area Developed | 2.20 million square feet |
| Number of Completed Projects | 28 |
| Ongoing Projects | Arkade Nest, others |
The company’s growth strategy involves both the construction of new residential projects and the redevelopment of existing properties in prime locations across Mumbai.
Final Thoughts on Arkade Developers IPO
The Arkade Developers IPO offers a strong investment opportunity, especially considering the company’s robust financial performance, impressive return ratios, and strategic expansion plans. The GMP of ₹86 further indicates a high level of interest in this IPO, with the potential for a significant listing premium. For investors looking to tap into Mumbai’s thriving real estate sector, the Arkade Developers IPO is certainly worth considering.
Whether you’re a retail investor or an institutional buyer, this IPO represents a promising entry point into a company poised for continued growth in a competitive market.
Hope this blog On Arkade Developers IPO has been informative and insightful.
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