Arkade Developers Files Rs 430-Crore IPO Papers with SEBI

4 Sep 2023 , 09:12 AM

Mumbai-headquartered real estate firm, Arkade Developers, has submitted preliminary documents to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) valued at Rs 430 crore. The IPO will exclusively consist of newly issued shares. 

Arkade Developers is under the ownership of Amit Mangilal Jain and his family.

In coordination with their merchant banker, the real estate company is contemplating a pre-IPO placement of Rs 20 crore before finalizing the red herring prospectus with the registrar of companies, as mentioned in the draft red herring prospectus (DRHP). If the pre-IPO placement is successfully executed, it will result in a reduction of the overall offer size.

The proceeds from the IPO will be directed towards financing ongoing projects, such as Arkade Nest, and upcoming ventures, totaling Rs 270 crore. The remaining funds will also be allocated for the acquisition of yet-to-be-identified land for future projects and general corporate purposes.

The company’s operations are centered in Mumbai, where, as of July 2023, they have completed the development of 1.80 million square feet of residential properties. Between 2017 and Q1-2023, the real estate developer introduced 1,040 residential units to the market, with 792 units being successfully sold in various locations within the Mumbai Metropolitan Region (MMR), Maharashtra.

Unistone Capital serves as the merchant banker for the IPO, while Bigshare Services is designated as the registrar for the offering.