Real-estate developer Arkade Developers Limited has filed its Draft Red Herring Prospectus (DRHP) with market regulator Sebi to raise ₹430 crore through an Initial Public Offering (IPO). The company proposes to use the net proceeds towards the development of their ongoing projects, upcoming projects and funding acquisition of future real estate projects and general corporate purposes.
As per the DRHP, the company's maiden public issue is entirely through a fresh issue of equity shares with no Offer For Sale (OFS) component.
Arkade Developers is concentrated on the development of premium aspirational lifestyle residential premises and has a significant presence in Mumbai, Maharashtra. The company has developed 1.80 million square feet of residential property (including through partnership entities in which Arkade holds the majority stake) as of 31 July 2023.
From 2017 to the quarter ending June 2023, Arkade Developers have launched 1,040 residential units and sold 792 residential units in different markets in the MMR, Maharashtra. The ongoing projects of the company include gated communities such as Arkade Nest, Arkade Crown and Arkade Aspire, Arkade Prime, and Arkade Aura.
The revenue of Arkade Developers saw a significant jump from ₹113 crore in 2021 to ₹237 crore in fiscal year 2022. The revenue declined marginally during the fiscal year ending March 2023 which stood at ₹224 crores. The revenue from operations has grown at a CAGR of 26.69% between 2021 and 2023.
“Unistone Capital is the sole Book Running Lead Manager (BRLM) to the issue. The equity shares of the company will be listed on BSE and NSE,” a release said.
The Rishabh Instruments IPO was subscribed 31.48 times on Day 3 so far. On the final day, the IPO received an overwhelming response from Qualified institutional buyers (QIBs). Optimism was also reflected by retail and non-institutional investors with three portions fully subscribed on the final day.
