The Arkade Developers IPO has generated significant attention in the stock market due to its overwhelming subscription rates and anticipated listing gains. The share allotment for this public issue, which was open for subscription between September 16 and September 19, has now been finalised. Investors who have been allotted shares should have received a notification via bank debit messages. Additionally, they can check their allotment status through official platforms such as the BSE, NSE, and the registrar Bigshare Services.
For those investors who were not allotted shares, the blocked amount in their bank accounts will be released soon. The shares of Arkade Developers will be listed on both the BSE and NSE on September 24, making it a crucial date for those looking to trade the shares post-allotment.
Subscription Status and Grey Market Premium (GMP)
On the final bidding day, September 19, the Arkade Developers IPO saw a subscription rate of 113.49 times. This substantial demand reflects the high level of investor confidence in the company. A total of 2,53,23,06,150 shares were bid for, compared to the 2,23,12,500 shares available.
Here is a breakdown of the subscription by category:
- Non-Institutional Investors (NII): 172.22 times
- Retail Individual Investors (RII): 53.78 times
- Qualified Institutional Buyers (QIBs): 172.60 times
The Grey Market Premium (GMP) of Arkade Developers shares is currently hovering around ₹63 above the issue price. This indicates that the market expects a listing gain of approximately 49.22%, making it a highly attractive proposition for investors. The GMP reflects the sentiments of investors in the unofficial or grey market and is subject to change based on various factors.
How to Check Arkade Developers IPO Allotment Status
For investors who wish to check their allotment status, here’s a step-by-step guide to follow:
On BSE Website:
- Visit the official BSE website via the following URL: BSE IPO Allotment
- Select “Equity” under the “Issue Type” dropdown.
- From the “Issue Name” dropdown, select “Arkade Developers Ltd.”
- Enter your Application Number or Permanent Account Number (PAN).
- Click the “I am not a robot” box to complete the CAPTCHA.
- Hit the Search button to view your allotment status.
On Bigshare Services Website:
- Go to the Bigshare Services Pvt Ltd portal: Bigshare IPO Allotment
- Follow the same steps as above to check the allotment status.
Arkade Developers IPO Key Dates
The public subscription for the Arkade Developers IPO opened on September 16 and concluded on September 19. The share allotment process has been finalised as of September 20, and the listing on BSE and NSE is set for September 24.
Here’s a summary of the important dates for reference:
- IPO Opening Date: September 16, 2024
- IPO Closing Date: September 19, 2024
- Allotment Finalised: September 20, 2024
- Listing Date: September 24, 2024
Analysts’ Recommendations for Arkade Developers IPO
Leading brokerages have given favorable recommendations for the Arkade Developers IPO, with most experts suggesting a ‘Subscribe’ rating. The company’s strong presence in Mumbai Metropolitan Region (MMR), particularly in residential properties, has earned it a solid reputation in the real estate sector.
Brokerage Recommendations
- Choice Broking: The brokerage highlights Arkade Developers‘ focus on premium lifestyle residential properties and redevelopment projects in Mumbai. The company’s near debt-free status and timely project delivery have positioned it well for future growth. With an EV/Sales ratio of 3.2x, it is attractively priced compared to peers. Choice recommends subscribing to the IPO for long-term gains.
- SBI Securities: SBI Securities notes that Arkade Developers is valued at a P/E ratio of 19.3x at the upper price band of ₹128. Given the company’s excellent execution track record, robust balance sheet, and potential for growth in the real estate sector, SBI also recommends subscribing to the issue for both listing gains and long-term investment.
Anchor Investors and IPO Details
Before the IPO opened to the public, Arkade Developers raised ₹122.40 crore from anchor investors, including BNP Paribas Financial Markets, Societe Generale, and Saint Capital Fund. These investors were allocated 95,62,500 shares at ₹128 per share.
Issue Structure
- Fresh Issue: Entire IPO consists of fresh equity shares worth ₹410 crore.
- Use of Proceeds: The funds will be used for the development of ongoing and upcoming projects, acquisition of land parcels, and general corporate purposes.
The IPO does not include any offer-for-sale (OFS) component, which indicates that the promoters and existing shareholders are not offloading any stake.
Arkade Developers: Company Overview
Arkade Developers Ltd is a prominent real estate company based in Mumbai, Maharashtra, specializing in the development of premium residential properties. With over two decades of experience, the company has successfully completed 28 projects in the Mumbai Metropolitan Region (MMR).
As of July 31, 2023, Arkade Developers had developed 1.80 million square feet of residential space. The company’s strategy focuses on redevelopment projects in western and eastern suburbs of Mumbai. Between 2017 and Q1 2023, Arkade Developers launched 1,040 residential units and sold 792 units.
Financial Highlights
- FY 2023 Revenue: ₹224.01 crore
- FY 2022 Revenue: ₹237.18 crore
- FY 2021 Revenue: ₹113.18 crore
Arkade Developers’ consistent performance in terms of revenue and profitability reflects its strategic growth initiatives in the competitive Mumbai real estate market.
IPO Bidding Details
- Minimum Lot Size: Investors can bid for a minimum of 110 shares and in multiples thereof.
- Retail Reservation: 35% of the issue size has been reserved for retail investors.
- QIB Reservation: 50% of the issue size has been reserved for qualified institutional buyers.
- NII Reservation: 15% of the issue size has been reserved for non-institutional investors.
Conclusion
The Arkade Developers IPO offers a compelling opportunity for investors looking to capitalize on the growth potential of a leading real estate player in Mumbai. With a strong track record, near debt-free status, and an attractive valuation compared to peers, analysts have given a favorable outlook for this public issue. Whether you’re looking for listing gains or a long-term investment, the Arkade Developers IPO is well-positioned to deliver value to its shareholders.
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