Arkade Developers IPO: Arcade Developers Limited’s initial public offer (IPO) will open for bidding on September 16 next week and close on September 19. Ahead of the IPO opening, the grey market premium (GMP) of its shares is hovering around Rs 63, indicating a premium of 49% over its issue price. The company plans to raise Rs 410 crore through this IPO. The price band of the issue has been fixed at Rs 121-128 per share. Investors can bid for a minimum of 110 shares in one lot and then apply in multiples of that.
At the upper price band, Arcade Developers will have a market cap of around Rs 2,376 crore. This IPO will be a completely fresh issue with no offer-for-sale (OFS) component. The company has already raised Rs 20 crore through a pre-IPO placement round.
The company said that it has reserved 50% of the IPO or shares worth Rs 204 crore for QIB (Qualified Institutional Bidders). At the same time, 15% or shares worth Rs 61 crore have been set aside for NII (Non-Institutional Investors). The remaining 35% or shares worth Rs 143 crore are reserved for retail investors.
Arcade Developers said it will use the capital raised from the IPO to complete its existing projects, acquire new projects and for other general corporate purposes. Unistone Capital is the sole book-running lead manager for the issue, while Bigshare Services Private Limited is the registrar to the issue.
Arkade Developers is a fast-growing real estate company in Mumbai. As of July 31, 2023, the company had developed 18 lakh square feet of residential properties. Between 2017 and the first quarter of 2023, the company launched 1,040 residential units and sold 792 residential units in various markets of the Mumbai Metropolitan Region (MMR) in Maharashtra.
The company’s revenue in FY 2023, 2022 and 2021 was ₹224 crore, ₹237 crore and ₹113 crore respectively. Allotment of shares of Arcade Developers is likely to take place on September 20, 2024, and its listing may take place on BSE and NSE on September 24, 2024.
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