Arkade Developers IPO: Key Details, GMP, and Review in 10 Points

Arkade Developers Ltd., an emerging player in the real estate sector with a strong presence in Mumbai, is set to open its Initial Public Offering (IPO) on Monday, September 16, 2024. The company has successfully completed numerous projects, developing 1.80 million square feet of real estate as of July 31, 2023. Arkade Developers is known for its timely project deliveries and expansion into various regions of the Mumbai Metropolitan Region (MMR).

Here are the top 10 points you should know before subscribing to the Arkade Developers IPO:

1. Arkade Developers IPO Key Dates

The Arkade Developers IPO will open for public subscription on Monday, September 16, 2024, and close on Thursday, September 19, 2024. Investors can submit their bids during this period.

2. Price Band for Arkade Developers IPO

The price band for this IPO has been set at ₹121 to ₹128 per equity share, with a face value of ₹10 per share. Investors will need to bid within this price range during the subscription period.

3. Arkade Developers IPO Size

The total issue size of the Arkade Developers IPO amounts to ₹410 crore, consisting entirely of a fresh issue of 3.2 crore equity shares. This means that the company is raising fresh capital without any offer for sale (OFS) from existing shareholders.

4. Lot Size for Arkade Developers IPO

Retail investors can subscribe to the IPO with a minimum lot size of 110 shares. At the upper end of the price band, this will require a minimum investment of ₹14,080. Additional lots can be purchased in multiples of 110 shares.

5. Promoter of Arkade Developers

According to the company's Draft Red Herring Prospectus (DRHP), Amit Mangilal Jain is the promoter of Arkade Developers. Under his leadership, the company has expanded its footprint in Mumbai’s real estate sector and delivered multiple successful residential projects.

6. Arkade Developers Financial Performance

In the first quarter of FY 2023, Arkade Developers launched 1,040 residential units in the Mumbai Metropolitan Region (MMR) and successfully sold 792 units. The company has a solid presence in the western suburbs of Mumbai but has expanded its reach to the eastern suburbs in recent years. Arkade Developers’ near debt-free status and consistent project delivery are significant factors contributing to its financial strength.

7. Allotment and Listing Dates

The allotment of shares to successful investors is expected to be finalized by Friday, September 20, 2024. The company's shares are expected to be listed on the stock exchanges (BSE and NSE) on Tuesday, September 24, 2024.

8. Book-Running Lead Manager for the IPO

The book-running lead manager for the Arkade Developers IPO is Unistone Capital Pvt Ltd., which will oversee the IPO process and ensure regulatory compliance. The registrar for the IPO is Bigshare Services, which will handle share allotment and investor queries.

9. Arkade Developers IPO Grey Market Premium (GMP)

As per data from Investorgain, the shares of Arkade Developers are currently trading at a Grey Market Premium (GMP) of ₹70. This indicates that the expected listing price could be around ₹198 per share, which is higher than the upper end of the price band. GMP is an indicator of the market's expectation of the stock’s performance after listing but should not be the sole factor in making investment decisions.

10. Arkade Developers IPO Review and Recommendations

Brokerage firm Choice Broking has given a "subscribe" rating for the Arkade Developers IPO. The company’s strong growth prospects, near debt-free status, and on-time project delivery make it an attractive investment opportunity in the real estate sector. Additionally, Arkade Developers is trading at a discount compared to its peers in the market, adding to its appeal.

The firm’s expansion into the eastern suburbs of Mumbai, along with its consistent track record, positions it well for sustainable growth in the future. Choice Broking’s recommendation is based on the company’s valuation, market potential, and growth trajectory.

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Arkade Developers IPO offers investors an opportunity to invest in a growing real estate development company with a strong foothold in the Mumbai Metropolitan Region (MMR). With a solid track record, impressive financial performance, and a debt-free status, the company is well-positioned for future growth.

As the IPO opens for subscription, investors should carefully consider the key dates, price band, GMP, and financial performance before making their decision. While the company's growth prospects are promising, it’s essential to evaluate personal financial goals and risk appetite when participating in IPO investments.