Arkade Developers IPO Subscription Details on Day 1

16 Sep 2024 , 04:33 PM

Arkade Developers Ltd opened its initial public offering (IPO) for public subscription on Monday. The IPO price band is set at ₹121 to ₹128 per share for the ₹410-Crore public issue.

On the first day of bidding, at the time of writing, the IPO received 5.46 times subscription, the Non-institutional investors subscribed 7.23 times, while retail individual investors (RIIs) subscribed 7.66 times.

The IPO is open for subscription from September 16 to September 19, with share allotment likely to be finalized by September 20. Arkade Developers shares are expected to be listed on BSE and NSE on September 24.

The company raised ₹122.40 Crore from anchor investors, issuing 95,62,500 shares at ₹128 per share ahead of the IPO. Anchor investors include BNP Paribas Financial Markets, Societe Generale, and Saint Capital Fund.

The IPO consists of a fresh issue of equity shares worth ₹410 Crore, with no offer-for-sale (OFS) component. Proceeds will fund ongoing and upcoming projects, future real estate acquisitions, and general corporate purposes.

Arkade Developers has a growing presence in Mumbai, with 1.80 million square feet of residential property developed as of July 31, 2023.

Between 2017 and Q1 2023, the company launched 1,040 residential units and sold 792 units in the Mumbai Metropolitan Region (MMR). Revenue for fiscals 2023, 2022, and 2021 stood at ₹224.01 Crore, ₹237.18 Crore, and ₹113.18 Crore, respectively.

Half of the IPO is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. Investors can bid for a minimum of 110 shares, with bids accepted in multiples thereof.