Upcoming IPO: Arkade Developers IPO to hit the D-Street on Sept 16; price band set at ₹121-128 per share

Arkade Developers IPO price band: The Arkade Developers Limited IPO price band has been fixed in the range of ₹121 to ₹128 per equity share of the face value of ₹10. The Arkade Developers IPO date of subscription is scheduled for Monday, September 16, and will close on Thursday, September 19. The allocation to anchor investors for the Arkade Developers IPO is scheduled to take place on Friday, September 13.

The issue's lot size is 65 equity shares and in multiples of 65 equity shares thereafter. Arkade Developers IPO has reserved 50% of the shares in the public issue for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and 35% of the offer is reserved for retail investors. The employees have been allocated equity shares worth up to ₹2 crores, and they are being given a discount of ₹5 per share.

Tentatively, Arkade Developers IPO basis of allotment of shares will be finalised on Friday, September 20, and the company will initiate refunds on Monday, September 23, while the shares will be credited to the demat account of allottees on the same day following refund. Arkade Developers share price is likely to be listed on BSE and NSE on Tuesday, September 24.

In Mumbai, Maharashtra, the commercial hub of India, the firm specializes in the building of high-end, aspirational lifestyle residential properties. The company's operations may be roughly divided into two groups: (i) new projects, which include developing and building residential buildings on land that the company has bought; and (ii) rehabilitation projects, which involve renovating existing buildings. 2.20 million square feet of residential property have been developed by us as of June 30, 2024 (including through partnership organisations in which we have the majority share).

As of June 30, 2024, there are 6 projects in MMR, Maharashtra that are included in the company's upcoming projects. Furthermore, by June 30, 2024, they have been granted a letter of intent for 2 redevelopment projects, but a contract has not been finalised yet.

During the financial year ending on March 31, 2024, Arkade Developers Limited experienced a 184% increase in revenue and a 142% rise in profit after tax (PAT) compared to the financial year ending on March 31, 2023.

As per the red herring prospectus (RHP), the company's listed peers are Keystone Realtors Ltd (with a P/E of 74.85), Godrej Properties Ltd (with a P/E of 111.53), Macrotech Developers Ltd (with a P/E of 78.46), Suraj Estate Developers Ltd (with a P/E of 40.92).

Arkade Developers IPO details

The Arkade Developers IPO, worth ₹410 crore, includes a fresh issuance of 32,031,250 equity shares with a face value of ₹10. There is no "offer for sale" component.

As per the RHP, the company, in consultation with the book running lead manager (BRLM), has carried out a Pre-IPO Placement of 1,626,016 equity shares at a price of ₹123 per Equity Share (inclusive of a premium of ₹113 per Equity Share) amounting to ₹20 crore (Pre-IPO Placement). Due to the Pre-IPO Placement, the size of the fresh issue of up to ₹430 crore has been decreased by ₹20 crore, resulting in the revised size of the Fresh Issue being up to ₹410 crore.

The Arkade Developers IPO is being managed by Unistone Capital Pvt Ltd as the book running lead manager, with Bigshare Services Pvt Ltd acting as the registrar for the issue.

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