Arkade Developers Ltd, a prominent real estate company based in Mumbai, has successfully raised ₹122.40 crore from anchor investors ahead of its upcoming initial public offering (IPO). The company has already set a price band of ₹121-128 per share for its IPO, which aims to raise a total of ₹410 crore. The public subscription for the IPO is scheduled to open on September 16, 2024, and close on September 19, 2024.
Anchor Investors’ Participation in Arkade Developers IPO
In a strategic move, Arkade Developers Ltd issued 95,62,500 shares to anchor investors at ₹128 per share, raising a total of ₹122.40 crore. These anchor investors include prestigious names such as:
- BNP Paribas Financial Markets – ODI
- Societe Generale – ODI
- Saint Capital Fund
This anchor investment signals strong interest from institutional investors and sets a positive tone for the public offering. By securing funds from reputed global entities, Arkade Developers has positioned itself as a strong contender in the Indian real estate market.
Arkade Developers IPO Price Band and Issue Details
The price band for the Arkade Developers IPO has been set between ₹121 and ₹128 per share. With the total IPO size expected to be ₹410 crore, this public offering is seen as a significant development in the Indian real estate sector.
Investors will be able to bid for a minimum of 110 shares, and in multiples thereof. The allocation of the issue size is as follows:
- 50% reserved for Qualified Institutional Buyers (QIBs)
- 35% for Retail Investors
- 15% for Non-Institutional Investors (NIIs)
The strategic allocation ensures that a wide range of investors will have access to Arkade Developers’ shares, appealing to both institutional and retail participants.
Purpose of the Arkade Developers IPO
The proceeds from the Arkade Developers IPO will be primarily used for:
- Development of ongoing and upcoming projects: The company is actively involved in several high-value residential and commercial projects, and the capital raised will support the timely completion and expansion of these ventures.
- Funding acquisition of future real estate projects: As part of its growth strategy, Arkade Developers is planning to acquire land and other real estate assets for future developments.
- General corporate purposes: A portion of the IPO proceeds will be used to support the company’s day-to-day operations, including working capital requirements and potential investments in technology and infrastructure.
Arkade Developers’ Growing Presence in Mumbai’s Real Estate Market
Arkade Developers Ltd has established itself as a fast-growing real estate development company with a significant presence in the Mumbai Metropolitan Region (MMR). The company has been instrumental in transforming Mumbai’s urban landscape with high-quality residential projects.
As of July 31, 2023, Arkade Developers has developed 1.80 million square feet of residential property. This includes both standalone projects and partnership ventures where Arkade holds a majority stake. Between 2017 and Q1 2023, the company launched a total of 1,040 residential units and successfully sold 792 units in different parts of Mumbai. This robust track record demonstrates Arkade Developers’ ability to cater to the growing demand for premium housing in one of India’s most competitive real estate markets.
Financial Performance of Arkade Developers
Arkade Developers Ltd has shown consistent financial growth over the years. The company’s revenue for the fiscal years:
- 2023 stood at ₹224.01 crore
- 2022 at ₹237.18 crore
- 2021 at ₹113.18 crore
These numbers reflect Arkade Developers’ upward trajectory, driven by its successful real estate developments and strategic market positioning. Despite a slight dip in revenue in 2023 compared to 2022, the company has maintained strong profitability and a growing portfolio of projects. The IPO proceeds are expected to further strengthen the company’s financial position, enabling it to take on more ambitious projects in the future.
Growth Potential and Future Projects
Arkade Developers Ltd has built a solid foundation in Mumbai, one of India’s most dynamic real estate markets. The company’s focus on premium residential properties has attracted high demand, and it continues to expand its portfolio with new and upcoming projects.
Some of the factors driving Arkade Developers’ growth include:
- Strong Market Presence: Arkade Developers has developed a reputation for delivering high-quality residential units in Mumbai. Its focus on timely delivery, innovative designs, and modern amenities has set it apart from competitors.
- Strategic Land Acquisitions: The proceeds from the IPO will help Arkade Developers secure prime real estate for future developments. This will allow the company to expand its presence in key areas of Mumbai and cater to the growing demand for luxury housing.
- Diversified Portfolio: Arkade Developers’ portfolio includes a mix of standalone projects and joint ventures, ensuring a balanced approach to real estate development. The company’s ability to manage multiple projects simultaneously has contributed to its growth and success.
With Mumbai’s real estate market continuing to thrive, Arkade Developers is well-positioned to benefit from the rising demand for residential properties. The funds raised from the IPO will enable the company to scale up its operations, develop new projects, and consolidate its leadership in the market.
Conclusion: Arkade Developers IPO – A Promising Opportunity for Investors
The Arkade Developers Ltd IPO offers investors a unique opportunity to participate in the growth of one of Mumbai’s leading real estate development companies. With strong anchor investor backing, a well-defined growth strategy, and a proven track record, Arkade Developers is set to make a significant impact with its public offering.
Investors who are keen on the real estate sector and looking for high-growth opportunities in the Mumbai Metropolitan Region should closely consider the Arkade Developers IPO. As the company continues to expand its portfolio and solidify its position in the market, the IPO could provide attractive returns both in the short and long term.
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