Arkade Developers IPO: Real Estate developer raises nearly ₹122.4 crore in anchor book round ahead of public issue

Arkade Developers Limited, the real estate development firm, on Friday, said that it has raised around ₹122.40 crore from investors in its anchor round, ahead of the company's proposed initial public offering (IPO), according to the company's exchange filing.

As per the exchange filing, the company has allocated 95,62,500 or 95.62 lakh equity shares to its anchor investors at an allocation price of ₹128 per share to nine anchor investors at a face value of ₹10 per share.

The investor pool in Arkade Developers' anchor round includes Stern Global, BNP Paribas, Intuitive Alpha investments, Saint Capital, Societe Generale, NAV Capital, Visionary Value Fund, Gagandeep Credit Capital and Rajasthan Global Securities, according to the exchange filing.

According to the exchange filing on Friday, BNP Paribas, at 20.43 per cent, Intuitive Alpha Investments, Saint Capital, and Stern Global, at 16.34 per cent, were some of the top anchor investors in the anchor issue.

Out of the 95,62,500 or 95.62 lakh equity shares allotted to the anchor investors the real estate developer did not disclose about any mutual fund allotment through any schemes, according to the company filing.

Arkade Developers IPO details

Mumbai-based Arkade Developers Limited is a real estate development company dealing with the development of high-end, sophisticated lifestyle residential developments. The company focuses its business operations on the construction of residential buildings on acquired land and the re-development of existing buildings, as per data from Chittorgarh.

The public issue will open for subscription on Monday, September 16 and will close for public bidding on Thursday, September 19, according to the company.

The ₹410 crore public offer has a price band of ₹121 to ₹128 per equity share, with a minimum lot size of 110 shares and in multiples of 110 equity shares thereafter, as per the company's draft red herring prospectus (DRHP).

The company aims to use the money raised from the public issue to fund the costs of developing ongoing projects like Arkade Nest, Prachi CHSL, and C-Unit. These are included in the funding (Funding Development Expenses). The company also aims to purchase property that has not been identified for real estate projects, and fund general business expenses, as per the DRHP.

Net profit of the company rose 142 per cent, while revenue grew 184 per cent in the financial year 2024, compared year-on-year with the previous year.