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11 Nov 2024
Arkade Developers Limited IPO And Its GMP
Arkade Developers Limited is a fast-growing real estate development Company with a significant presence in Mumbai, Maharashtra. Their operations are concentrated on the development of premium aspirational lifestyle residential premises in Mumbai, Maharashtra, India’s commercial capital. As of July 31, 2023, they have developed 1.80 million square feet of residential property (including through partnership entities in which they hold the majority stake).
They are engaged in the development of new projects and redevelopment of existing premises and between 2017 and Q1 2023, they have launched 1,040 residential units and sold 792 residential units in different markets in the MMR, Maharashtra. In particular, they have established a successful track record of completing their projects on time and from CY 2003 to March 2023, they have completed the redevelopment of 9 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai (through a partnership firm in which they hold the majority stake) with a combined constructed area of 6,48,000 square feet. This track record has established them as one of the major players in redevelopment in the Mumbai western suburbs.
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Arkade Developers IPO Summary:
- ● Issue Type: Book Built
- ● Total Issue Size: ₹410.00 crores
- ● Number of Shares: 3.2 crore shares (entirely a fresh issue)
- ● Price Band: ₹121 to ₹128 per share
- ● Minimum Lot Size: 110 shares
- ● IPO Opening Date: September 16, 2024
- ● IPO Closing Date: September 19, 2024 Key Details:
- ● Book Running Lead Manager: Unistone Capital Pvt Ltd
- ● Registrar: Bigshare Services Pvt Ltd
WHAT IS GMP?
GMP stands for Grey Market Premium, and if you are planning your IPO then GMP plays an important role. A grey market is a place where stocks/shares get traded before getting officially listed on any stock exchange. The difference between the IPO price and the grey market price is known as GMP (grey market premium). GMP is a premium amount paid at which initial public offering (IPO) shares are traded before it is listed on the stock exchanges.
Arkade Developers Limited IPO GMP
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| 24-09-2024 | 128 | 63 (49.22%) | 24-Sep-2024 12:20 |
| 23-09-2024 | 128 | 63 (49.22%) | 23-Sep-2024 12:20 |
| 20-09-2024 | 128 | 60 (46.88%) | 20-Sep-2024 12:10 |
| 19-09-2024 | 128 | 85 (66.41%) | 19-Sep-2024 12:30 |
| 18-09-2024 | 128 | 85 (66.41%) | 18-Sep-2024 12:15 |
| 17-09-2024 | 128 | 86 (67.19%) | 17-Sep-2024 12:55 |
| 16-09-2024 | 128 | 80 (62.50%) | 16-Sep-2024 13:45 |
| 13-09-2024 | 128 | 63.0 (49%) | 13-Sep-2024 12:35 |
| 12-09-2024 | 128 | 48.0 (38%) | 12-Sep-2024 12:45 |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Arkade Developers Limited IPO Overview
| Detail | Description |
|---|---|
| IPO Date | September 16, 2024 to September 19, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹121 to ₹128 per share |
| Lot Size | 110 Shares |
| Total Issue Size | 32,031,250 shares (aggregating up to ₹410.00 Cr) |
| Fresh Issue | 32,031,250 shares (aggregating up to ₹410.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 153,626,016 |
| Shareholding post issue | 185,657,266 |
Arkade Developers IPO Timeline (Tentative Schedule)
| Detail | Description |
|---|---|
| IPO Open Date | Monday, September 16, 2024 |
| IPO Close Date | Thursday, September 19, 2024 |
| Basis of Allotment | Friday, September 20, 2024 |
| Initiation of Refunds | Monday, September 23, 2024 |
| Credit of Shares to Demat | Monday, September 23, 2024 |
| Listing Date | Tuesday, September 24, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 19, 2024 |
Arkade Developers Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 110 | ₹14,080 |
| Retail (Max) | 14 | 1540 | ₹197,120 |
| S-HNI (Min) | 15 | 1,650 | ₹211,200 |
| S-HNI (Max) | 71 | 7,810 | ₹999,680 |
| B-HNI (Min) | 72 | 7,920 | ₹1,013,760 |
Arkade Developers Limited IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Arkade Developers IPO Promoter Holding
| Share Holding Pre Issue | 85.58% |
| Share Holding Post Issue | 70.82% |
Arkade Developers IPO Anchor Investors Details
| Bid Date | September 13, 2024 |
| Shares Offered | 9,562,500 |
| Anchor Portion Size (In Cr.) | 122.40 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 20, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 19, 2024 |
Company & Financials
Arkade Developers Limited is a real estate development company focused on developing high-end, sophisticated lifestyle residential developments in Mumbai, Maharashtra.
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The company's business can be divided into two segments:
- ● Development/construction of residential buildings on land acquired by the company (new projects)
- ● Redevelopment of existing buildings (Redevelopment Projects)
The company is involved in the development of new projects and the redevelopment of existing buildings. Between 2017 and Q1 2024, the company launched 1,220 residential units and sold 1,045 residential units in various markets in MMR, Maharashtra. As of June 30, 2024, the company has developed 2.20 million square feet of residential properties. From CY 2003 to March 2024, the company completed the redevelopment of 10 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai (through a partnership firm in which the company held a majority stake) with a total built-up area of 1,000,000 square feet (approx.).
In the last two decades, the Company has completed 28 projects including 11 projects on a standalone basis including 2 projects executed through partnership firms in which the Company held a majority stake, 8 projects executed by the promoter through his proprietorship, M/s Arkade Creations, and 9 projects through joint development agreements with other third parties with a total built-up area of more than 4.5 million square meters awarded to more than 4,000 customers.
Arkade Developers Limited Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||||||||||||
| Assets | 575.01 | 555.41 | 369.97 | |||||||||||||||||||||||||||||||||||||
| Revenue | 635.71 | 224.01 | 237.18 | |||||||||||||||||||||||||||||||||||||
| Profit After Tax | 122.81 | 50.77 | 50.84 | |||||||||||||||||||||||||||||||||||||
| Net Worth | 323.4 | 200.32 | 149.5 | |||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 171.4 | 198.32 | 147.49 | |||||||||||||||||||||||||||||||||||||
| Total Borrowing | 69.41 | 149 | 64.41 | |||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 46.90% |
| ROCE | 47.34% |
| Debt/Equity | 0.21 |
| RoNW | 46.90% |
| P/BV | 6.02 |
| PAT Margin (%) | 19.35 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 7.99 | 6.61 |
| P/E (x) | 16.01 | 19.35 |
Objectives of Arkade Developers IPO
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The Company proposes to utilize the Net Proceeds from the Issue towards the following objectives:
- 1. 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).
- 2. Funding acquisition of yet-to-be-identified land for real estate projects and general corporate purposes.
Arkade Developers IPO Review
The company is one of the leading real estate developers having operations in the MMR region. It marked static performance for FY22 and FY23 but posted improved numbers for FY24, indicating the likely trends going ahead. Based on FY24 earnings, the issue appears reasonably priced. Investors may park funds for the medium to long term.
FAQs for Arkade Developers IPO
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What is Arkade Developers IPO?
Arkade Developers IPO is a main-board IPO. The company is going to raise ₹410 Crores via IPO. The issue is priced at ₹121 to ₹128 per equity share. The IPO is to be listed on BSE & NSE.
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When will the Arkade Developers IPO open for subscription?
The IPO is to open on September 16, 2024 for QIB, NII, and Retail Investors. The IPO will close on September 19, 2024.
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What is Arkade Developers IPO Investors Portion?
The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
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What is Arkade Developer's IPO Issue Size?
Arkade Developers IPO issue size is ₹410 crores.
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What is Arkade Developer's IPO Price Band?
Arkade Developers IPO Price Band is ₹121 to ₹128.
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What is Arkade Developer's IPO Lot Size?
The minimum bid is 110 Shares with ₹14,080.
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What is the Arkade Developers IPO Allotment Date?
Arkade Developers IPO allotment date is September 20, 2024.
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What is the Arkade Developers IPO Listing Date?
Arkade Developers' IPO listing date is September 24, 2024. The IPO is to be listed on BSE and NSE.
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What is the current GMP of Arkade Developers?
The current GMP of Arkade Developers is 63 (49.22%).
RHP:
RHP of Arkade Developers Limited IPO
DRHP:
DRHP of Arkade Developers Limited IPO
Anchor Investor Link:
Anchor Investor Link of Arkade Developers Limited IPO
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What is Arkade Developers IPO?
Arkade Developers IPO is a main-board IPO. The company is going to raise ₹410 Crores via IPO. The issue is priced at ₹121 to ₹128 per equity share. The IPO is to be listed on BSE & NSE.
-
When will the Arkade Developers IPO open for subscription?
The IPO is to open on September 16, 2024 for QIB, NII, and Retail Investors. The IPO will close on September 19, 2024.
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What is Arkade Developers IPO Investors Portion?
The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
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What is Arkade Developer's IPO Issue Size?
Arkade Developers IPO issue size is ₹410 crores.
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What is Arkade Developer's IPO Price Band?
Arkade Developers IPO Price Band is ₹121 to ₹128.
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What is Arkade Developer's IPO Lot Size?
The minimum bid is 110 Shares with ₹14,080.
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What is the Arkade Developers IPO Allotment Date?
Arkade Developers IPO allotment date is September 20, 2024.
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What is the Arkade Developers IPO Listing Date?
Arkade Developers' IPO listing date is September 24, 2024. The IPO is to be listed on BSE and NSE.
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What is the current GMP of Arkade Developers?
The current GMP of Arkade Developers is 63 (49.22%).
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