Arkade Developers IPO Day 4: GMP, subscription status, review. Apply or not?

Arkade Developers IPO day 4: The subscription period for the initial public offering (IPO) of real estate developer Arkade Developers ends on Thursday, September 19. The ₹410 crore book built issue opened for subscription on Monday, September 16, and has seen a healthy response from retail and non-institutional investors (NIIs). Ahead of the IPO, the company raised around ₹122.40 from anchor investors.

Arkade Developers IPO subscription status

The mainboard issue was fully subscribed on day 1, September 16, and has been witnessing a healthy response. As per BSE data, by 7 pm on day 4 on September 19, it had been subscribed 106.83 times, the retail portion of the public issue had been booked 51.39 times, and the NII segment had seen a subscription of 163.02 times. The segment reserved for the QIB had received bids 163.16 times.

Arkade Developers IPO GMP today

According to investorgain.com, the last grey market premium (GMP) of the Arkade Developers IPO was ₹60.

Considering the upper price band of the IPO and the current grey market premium, the estimated listing price for Arkade Developers shares is ₹188, reflecting a 46.88 per cent premium over the issue price of ₹128.

GMP indicated investors' willingness to buy the stock at a premium to the issue price.

Arkade Developers IPO review

Experts are positive about the issue, seeing valuations as reasonable while growth prospects are bright.

Brokerage firm Choice Broking has a 'subscribe' recommendation on the issue.

"At the higher end of the price range, Arkade Developers is asking an EV/sales ratio of 3.2 times, which is at a discount to the peer average. Historically, the company has concentrated on the western suburbs of MMR (Mumbai Metropolitan Region), but in recent years, it has expanded into the eastern suburbs of Mumbai. This business growth strategy, along with its near debt-free status and consistent on-time project delivery, positions Arkade Developers for sustainable growth in the future," said Choice Broking.

Brokerage firm Anand Rathi, too, has a 'subscribe' rating on the issue.

"On the valuation front, at the upper price band, for FY24, Arkade is seeking PE of 19.3 times and P/BV of 3.2 with a market capitalization of 23,760 Mn post-issue, which seems the issue fairly priced. Therefore, considering business growth visibility and stable financial performance, the company is well-placed to tap into Mumbai’s real estate sector," said Anand Rathi.

Arkade Developers IPO details

Arkade Developers IPO aims to raise ₹410 crore from a fresh issue of 3.2 crore shares, which it intends to use to fund ongoing projects, acquire land for real estate projects, and conduct general corporate business.

It has set a price band of ₹121 to ₹128 per share for the issue. The issue opened for subscription on Monday, September 16, and concludes today, Thursday, September 19. The company is expected to finalise the share allotment on Friday, September 20, and the stock may be listed on Tuesday, September 24.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.