Arkade Developers, a renowned real estate developer, is nearing the conclusion of its initial public offering (IPO) on September 19, which aims to raise ₹410 crore. The IPO has attracted substantial interest from retail and non-institutional investors (NIIs), resulting in heavy oversubscription in both segments.
Subscription Status
As of September 19, 7 p.m., the mainboard issue had been oversubscribed 106.83 times, the retail portion 51.39 times, and the NII segment 163.02 times. Additionally, the qualified institutional buyers (QIB) segment was oversubscribed 163.16 times.
Before the IPO, Arkade Developers secured ₹122.40 crore from anchor investors, underscoring institutional solid backing. The grey market premium (GMP) for the IPO was ₹60, indicating investors’ willingness to pay a premium for the stock. Based on the upper price band of ₹128 and the GMP, the estimated listing price for Arkade Developers shares is ₹188, representing a 46.88% premium.
Industry experts have provided:
- Optimistic assessments of the IPO.
- Highlighting the company’s reasonable valuations.
- Consistent project delivery.
- Expansion into new markets.
Choice Broking has recommended subscribing to the IPO, emphasising Arkade Developers’ debt-free status and expansion initiatives. At the same time, Anand Rathi has also issued a “Subscribe” rating based on the company’s fair pricing and strong financial performance.
The IPO details include a ₹410 crore issue size, consisting of 3.2 crore shares in the price band of ₹121-₹128 per share. The funds raised will be utilised for ongoing projects, land acquisition, and general corporate purposes. The share allotment is expected on September 20, with the listing projected for September 24.
Arkade Developers, focusing on the Mumbai Metropolitan Region (MMR), has demonstrated a strong track record of timely project delivery and a nearly debt-free status. This confidence-inspiring track record, coupled with the high demand for the IPO and positive analyst reviews, positions Arkade Developers for a successful listing.
