Shares of Arkade Developers are to make Dalal Street debut on Tuesday and the real estate player is set to deliver a strong listing pop to the investors, thanks to strong bidding and upward momentum in the broader markets. Even the grey market premium (GMP) for the issue is suggesting a solid listing pop for the investors later today.
Ahead of its debut, Arkade Developers was commanding a premium (GMP) of Rs 60 per share, suggesting a listing pop of about 50 per cent for the investors on debut. However, its GMP in the unofficial market stood at Rs 60 apiece, when the bidding for the was closed.
Arkade Developers is a prominent real estate development company focused on premium residential projects in Mumbai, is set for a strong stock market listing. The IPO has garnered significant investor interest, evidenced by a robust subscription of 113.49 times and a substantial grey market premium, said Shivani Nyati, Head of Wealth, Swastika Investmart.
"The IPO's valuation appears competitive and fair, further enhancing its appeal to investors. Given the company's strong fundamentals, strategic focus, and robust investor response, Arkade Developers is well-positioned for a successful listing and potential long-term growth," she said.
Arkade Developers sold its IPO in the price band of Rs 121-128 per share with a lot size of 110 shares. The issue ran for bidding between September 16 and September 19. The Mumbai-based real estate company aimed to raise around Rs 410 crore from its primary offering, which was entirely a fresh share sale of 3,20,310,250 equity shares.
The issue was overall subscribed a bumper 106.83 times. Strong bidding was led by qualified institutional bidders (QIBs) and non-institutional investors (NIIs), whose quotas were booked a solid 163.16 times and 163.02 times, respectively. The allocation for retail investors and employees were subscribed 51.39 times and 50.49 times, during the four-day bidding process.
Arkade Developers has attracted significant interest in its IPO, achieving a subscription rate exceeding 113 times. The company is set to make a robust debut on the stock exchanges with an expected premium of more than 60 per cent above the issue price, said Sagar Shetty, Research Analyst, StoxBox.
"Looking ahead, Arkade Developers plans to expand into the eastern region of the Mumbai Metropolitan Region(MMR), Maharashtra, with a mix of commercial and residential developments. We thus recommend that investors allotted shares consider holding their positions from a medium to long-term perspective," he said.
Arkade Developers is a real estate development company focused on developing high-end, sophisticated lifestyle residential developments in Mumbai, Maharashtra. The company's business can be divided into two segments: fresh construction of residential buildings on land acquired by the company and redevelopment of existing buildings.
Brokerage firms were mostly positive on the issue suggesting to subscribe it for a long term Unistone Capital was the sole book running lead manager of the Arkade Developers IPO, while Bigshare Services served as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.