Arkade Developers Limited IPO
Arkade Developers Limited is launching an IPO to raise Rs 410 crores through a fresh issue of 3.2 crore shares. The IPO opens on September 16, 2024 and closes on September 19, 2024, with a price band of ₹121 to ₹128 per share. The company focuses on developing high-end residential properties in Mumbai.
RD
by RA ALOK DAIYA
About Arkade Developers Limited
1
Focus
Arkade Developers Limited is a real estate development company focused on building high-end residential properties in Mumbai, Maharashtra.
2
Segments
The company specializes in two areas: developing new residential projects on land it acquires, and redeveloping existing buildings.
3
Track Record
Arkade has a strong track record, launching 1,220 residential units and selling 1,045 between 2017-Q1 2024 in MMR, Maharashtra. As of June 2024, they've developed 2.20 million sq ft of residential properties.
Since 2003, Arkade has completed the redevelopment of 11 western Mumbai projects and 1 in south-central Mumbai, totaling over 1,000,000 sq ft. They've completed 28 projects, including 8 through joint development, resulting in over 4.5 million sq m built-up area and 4,000+ customers.
As of June 2024, Arkade employs 201 permanent and 850 contract staff.
IPO Basics and Timeline
Arkade Developers IPO is a book built issue of Rs 410.00 crores. The issue is entirely a fresh issue of 3.2 crore shares.
Arkade Developers IPO opens for subscription on September 16, 2024 and closes on September 19, 2024. The allotment for the Arkade Developers IPO is expected to be finalized on Friday, September 20, 2024. Arkade Developers IPO will list on BSE, NSE with tentative listing date fixed as Tuesday, September 24, 2024.
Arkade Developers IPO price band is set at ₹121 to ₹128 per share. The minimum lot size for an application is 110 Shares. The minimum amount of investment required by retail investors is ₹14,080. The minimum lot size investment for sNII is 15 lots (1,650 shares), amounting to ₹211,200, and for bNII, it is 72 lots (7,920 shares), amounting to ₹1,013,760.
1
IPO Open Date
Monday, September 16, 2024
2
IPO Close Date
Thursday, September 19, 2024
3
Basis of Allotment
Friday, September 20, 2024
4
Listing Date
Tuesday, September 24, 2024
IPO Reservation and Subscription Status
Arkade Developers IPO offers 3,18,75,000 shares. 63,75,000 (20%) to QIB, 47,81,250 (15%) to NII, 1,11,56,250 (35%) to RII and 95,62,500 (30%) to Anchor investors.
The Arkade Developers IPO is subscribed 2.86 times on September 16, 2024 1:13:10 PM (Day 1). The public issue subscribed 4.47 times in the retail category, 0.00 times in the QIB category, and 2.78 times in the NII category.
Company Financials and Key Performance Indicators
184%
Revenue Growth
Between FY23 and FY24
142%
PAT Growth
Between FY23 and FY24
Arkade Developers Limited's revenue increased by 184% and profit after tax (PAT) rose by 142% between the financial year ending with March 31, 2024 and March 31, 2023. The market capitalization of Arkade Developers IPO is Rs 2376.41 Cr.
KPI as of March 31, 2024.
46.90%
ROE
47.34%
ROCE
0.21
Debt/Equity
46.90%
RoNW
Objects of the Issue
The Company proposes to utilize the Net Proceeds from the Issue towards the following objects:
- Funding is part of the costs to be incurred in developing the Ongoing Projects (viz. Arkade Nest, Prachi CHSL, and C-Unit) (Funding Development Expenses); and
- Funding acquisition of yet-to-be-identified land for real estate projects and general corporate purposes.
IPO Review
Arkade Developers' IPO is attractively priced, considering its strong track record of execution, healthy market share in its chosen micro-markets, robust financial standing, and the potential for growth in the Mumbai Metropolitan Region (MMR) real estate market. The company is well-positioned to capitalize on the rising demand for real estate in the MMR, fueled by rapid urbanization. The Company boasts a strong brand in the MMR and Maharashtra, known for its customer-centric approach, further solidifying its competitive advantage.
As a leading real estate developer in Mumbai, Arkade Developers is strategically focused on the mid-premium segment, utilizing an asset-light model through joint ventures to deliver high-quality residential spaces. Its impressive ROE and ROCE, at 47%, demonstrate its strong returns, driven by efficient project management and execution capabilities. Key strengths include a solid reputation for delivering projects on time, a firm foothold in the MMR, and the ability to capitalize on redevelopment opportunities.
Considering the Overall Aspects, this IPO can be opted by both Traders & Investors for Listing Gain and Capital Gain in the long-run, respectively.