Arkade Developers IPO set for Monday opening: Check GMP, allotment date & other key details

With benchmark indices hovering near record highs, several companies are looking to capitalize on the favorable market conditions by launching IPOs (Initial Public Offerings). One such offering is from Arkade Developers Ltd., which will open for subscription on Monday, September 16, and close on September 19. In the grey market, the issue is trading at a 49% premium, or ₹63 above the upper limit of the price band.

Arkade Developers plans to raise ₹410 crore through the IPO, with a price band set between ₹121-128 per share. Investors can bid for a minimum of one lot consisting of 110 shares. Based on the upper price band, the company's post-listing market capitalization is expected to reach ₹2,376 crore.

The IPO will involve the issuance of ₹410 crore worth of fresh shares, with no offer-for-sale (OFS) component. The company has already raised ₹20 crore in a pre-IPO placement. Approximately 50% (₹204 crore) of the offer is reserved for Qualified Institutional Buyers (QIBs), 15% (₹61 crore) for Non-Institutional Investors, and 35% (₹143 crore) for retail investors.

The funds raised will be used to develop existing and upcoming projects, acquire future real estate projects, and for general corporate purposes.

Arkade Developers Ltd. is a growing real estate development firm with a strong presence in Mumbai. As of July 31, 2023, the company had developed 1.80 million square feet of residential property. Since 2017, through the first quarter of FY 2023, the company has launched 1,040 residential units and sold 792 units in the Mumbai Metropolitan Region (MMR).

The company reported a revenue of ₹224 crore in FY 2023, ₹237 crore in 2022, and ₹113 crore in 2021. Unistone Capital is the sole book-running lead manager (BRLM) for the IPO, while Bigshare Services Pvt. Ltd. will serve as the registrar for the offer.

The IPO allotment is expected to be finalized on September 20, 2024, and Arkade Developers’ shares will be listed on the BSE and NSE, with a tentative listing date of September 24, 2024.