Arkade Developers Limited IPO Overview

The Arkade Developers IPO is a book-built issue of ₹410.00 crores, with a fresh issue of 32 million shares. The subscription period runs from September 16 to September 19, 2024, with listing on BSE and NSE scheduled for September 24, 2024. The price band is set between ₹121 and ₹128 per share.

Retail investors can apply in lots of 110 shares, with a minimum investment of ₹14,080. For sNII, the minimum lot is 1,650 shares (₹211,200), and for bNII, it’s 7,920 shares (₹1,013,760). Unistone Capital Pvt Ltd is the lead manager, and Bigshare Services Pvt Ltd is the registrar. For more information, check the Arkade Developers IPO RHP.

Arkade Developers Limited IPO Important dates

Arkade Developers’ IPO opens on September 16, 2024, and closes on September 19, 2024.

IPO Open Date Monday, September 16, 2024
IPO Close Date Thursday, September 19, 2024
Basis of Allotment Friday, September 20, 2024
Initiation of Refunds Monday, September 23, 2024
Credit of Shares to Demat Monday, September 23, 2024
Listing Date Tuesday, September 24, 2024
Cut-off time for UPI mandate confirmation 5 PM on September 19, 2024

Arkade Developers Limited Financial Performance

Period Ended 31 Mar 2024 (₹ Crore) 31 Mar 2023 (₹ Crore) 31 Mar 2022 (₹ Crore)
Assets 575.01 Crore 555.41 Crore 369.97 Crore
Revenue 635.71 Crore 224.01 Crore 237.18 Crore
Profit After Tax 122.81 Crore 50.77 Crore 50.84 Crore
Net Worth 323.4 Crore 200.32 Crore 149.5 Crore
Reserves and Surplus 171.4 Crore 198.32 Crore 147.49 Crore
Total Borrowing 69.41 Crore 149 Crore 64.41 Crore

Arkade Developers Limited IPO Key Performance Indicator

KPI as of March 31, 2024.

KPI Values
ROE 46.90%
ROCE 47.34%
Debt/Equity 0.21
RoNW 46.90%
P/BV 6.02
PAT Margin (%) 19.35
Pre IPO Post IPO
EPS (Rs)  7.99
P/E (x)  16.01

Arkade Developers Limited IPO Objectives

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects:

  • Funding is part of the costs to be incurred in developing the Ongoing Projects (viz. Arkade Nest, Prachi CHSL, and C-Unit) (Funding Development Expenses); and
  • Funding acquisition of yet-to-be-identified land for real estate projects and general corporate purposes.

Arkade Developers Limited IPO Lot Size

Investors can bid for a minimum of 110 shares and in multiples thereof. The table below depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amounts.

Application Lots Shares Amount
Retail (Min) 1 110 ₹14,080
Retail (Max) 14 1540 ₹197,120
S-HNI (Min) 15 1,650 ₹211,200
S-HNI (Max) 71 7,810 ₹999,680
B-HNI (Min) 72 7,920 ₹1,013,760

Arkade Developers Limited IPO Details

IPO Date September 16, 2024 to September 19, 2024
Listing Date [September 24, 2024]
Face Value ₹10 per share
Price Band ₹121 to ₹128 per share
Lot Size 110 Shares
Total Issue Size 32,031,250 shares
(aggregating up to ₹410.00 Cr)
Fresh Issue 32,031,250 shares
(aggregating up to ₹410.00 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Shareholding pre-issue 153,626,016

Arkade Developers Limited Company Overview and Services

Arkade Developers Limited is a premier real estate developer specializing in high-end residential projects in Mumbai, Maharashtra. The company operates primarily in two key areas: the development and construction of new residential buildings on acquired land, and the redevelopment of existing structures.

Since its inception, Arkade Developers has made significant strides in the real estate market. From 2017 to Q1 2024, the company launched 1,220 residential units and successfully sold 1,045 units across Mumbai Metropolitan Region (MMR). As of June 30, 2024, Arkade Developers has developed 2.20 million square feet of residential space. Additionally, the company has redeveloped 11 projects in Mumbai’s western suburbs and one in south-central Mumbai, totaling approximately 1 million square feet.

Over the past two decades, Arkade Developers has completed 28 projects, including 11 standalone projects, 8 through the promoter’s previous firm, Arkade Creations, and 9 via joint development agreements. These projects have delivered over 4.5 million square meters of built-up area to over 4,000 customers.

As of June 30, 2024, the company employs 201 permanent staff members and 850 additional contract employees, underscoring its substantial workforce dedicated to delivering sophisticated residential developments.

Arkade Developers Limited IPO SWOT Analysis

Strengths:

  • Established Market Presence: With a strong track record, Arkade Developers has successfully launched and sold over 1,000 residential units in the Mumbai Metropolitan Region (MMR) between 2017 and Q1 2024, showcasing its robust market presence and customer demand.
  • Diverse Project Portfolio: The company has a diverse portfolio of 28 completed projects, including standalone developments, projects through partnerships, and joint ventures. This extensive experience enhances its credibility and project management expertise.
  • Significant Development and Redevelopment Expertise: Arkade Developers has developed 2.20 million square feet of residential space and redeveloped approximately 1 million square feet, reflecting its capability to handle both new developments and complex redevelopment projects.
  • Strong Workforce: With 201 permanent employees and 850 contract staff, Arkade Developers has a substantial and skilled workforce, supporting efficient project execution and management.

Weaknesses:

  • Market Dependence: The company’s primary focus on the Mumbai real estate market may expose it to regional economic fluctuations and regulatory changes, potentially impacting its business performance.
  • High Competition: The Mumbai real estate sector is highly competitive, with numerous established players. Arkade Developers faces significant competition from other developers with more extensive portfolios and resources.
  • Project Execution Risks: The scale and complexity of ongoing and future projects, especially redevelopment projects, may present risks related to project delays, cost overruns, and regulatory compliance.

Opportunities:

  • Growing Real Estate Demand: Increasing urbanization and growing demand for high-end residential properties in Mumbai present significant growth opportunities for Arkade Developers.
  • Expansion Potential: The company has the potential to expand its footprint beyond Mumbai and explore new markets, leveraging its experience and successful project execution track record.
  • Strategic Partnerships: Opportunities to form strategic alliances or joint ventures with other real estate firms or investment partners could enhance the company’s project pipeline and market reach.

Threats:

  • Economic and Regulatory Changes: Economic downturns, changes in real estate regulations, and fluctuations in interest rates can impact real estate demand and project financing.
  • Market Volatility: The real estate market’s cyclical nature and market volatility could affect property prices, sales, and overall profitability.
  • Rising Costs: Increasing construction costs, including labor and material expenses, could impact profit margins and project feasibility.

Arkade Developers Limited IPO GMP Details

Arkade Developers IPO last GMP is ₹0, last updated Sep 10th 2024. With a price band of 128.00, Arkade Developers IPO’s estimated listing price is ₹128 (cap price + today’s GMP). The expected percentage gain/loss per share is 0.00%.

Stay with us to know the daily price trend of Arkade Developers IPO  GMP with an

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
10-09-2024 128.00 ₹0  — ₹128 (0%) 10-Sep-2024
09-09-2024 ₹0  — ₹ (0%) 9-Sep-2024
08-09-2024 ₹0  — ₹ (0%) 8-Sep-2024
07-09-2024 ₹0  — ₹ (0%) 7-Sep-2024
06-09-2024 ₹0  — ₹ (0%) 6-Sep-2024

Arkade Developers Limited IPO subscription status 

Note that the bidding starts at 10 AM and ends at 5 PM on the days when the public issue is open.

Arkade Developers Limited IPO Allotment status 

The allotment status of Arkade Developers IPO is expected to be available on September 20, 2024.

Arkade Developer’s IPO allotment status is not available at this time. Arkade Developers IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Arkade Developers Limited IPO allotment status.

To check Arkade Developer’s IPO allotment status, follow the steps below:

  • Click on the below allotment status check button.
  • Select Company Name.
  • Enter your PAN Number, Application Number, or DP Client ID (Anyone).
  • Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Bigshare Services Pvt Ltd either by phone or email. Investors can call +91-22-6263 8200 or send an email with all relevant details to ipo@bigshareonline.com.

Arkade Developers Limited Contact Details

 Arkade Developers Limited
Arkade House, Opp. Bhoomi Arkade,
Near Children Academy, A S Marg, Ashok Nagar,
Kandivali (East), Mumbai – 400101
Phone: +91 22 2887474
Email: cs@arkade.in
Website: http://www.arkade.in/

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Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.