Arkade Developers Sets Price Band for Rs 410 Crore IPO at Rs 121-128 per Share
Arkade Developers Ltd is preparing for its initial public offering (IPO), setting a price band of Rs 121-128 per share. This IPO aims to raise a total of Rs 410 crore and will be open for public subscription from September 16 to September 19. The company has a significant footprint in the Mumbai real estate market, having developed a substantial amount of residential property.
Details of the IPO
The upcoming IPO consists entirely of a fresh issue of equity shares, with no offer-for-sale (OFS) component. This means that the funds raised will directly contribute to the company's growth rather than selling existing shares. The IPO is expected to enhance the company's valuation, which is projected to exceed Rs 2,300 crore post-issue, according to brokerage estimates.
Use of Proceeds
The proceeds from this IPO will be allocated towards several key areas:
- Development of ongoing and upcoming real estate projects
- Acquisition of future projects
- General corporate purposes
This strategic allocation of funds is aimed at bolstering Arkade Developers' position in the competitive Mumbai real estate market.
Company Background
Arkade Developers has established itself as a growing player in the Mumbai real estate sector. As of July 31, 2023, the company has developed 1.80 million square feet of residential property, including projects completed through partnerships. From 2017 to the first quarter of 2023, Arkade launched 1,040 residential units and successfully sold 792 units within the Mumbai Metropolitan Region (MMR).
Investor Participation
The IPO has earmarked specific portions of the offering for different types of investors: 50% for Qualified Institutional Buyers (QIBs), 35% for Retail Investors, and 15% for Non-Institutional Investors. Investors can bid for a minimum of 110 shares, with the option to bid for additional shares in multiples of 110.
Listing Information
Once the IPO process is complete, the equity shares of Arkade Developers are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 24. Unistone Capital is serving as the sole book-running lead manager for this IPO.
Practical Takeaway
For potential investors, this IPO represents an opportunity to invest in a growing real estate company with a solid track record in Mumbai. The allocation of funds towards project development and acquisitions may enhance the company's growth prospects, making it a noteworthy option for those looking to invest in the real estate sector.