The Arkade Developer IPO is witnessing significant attention from investors, with the issue being subscribed a remarkable 16.21 times by the second day of its opening on 17 September 2024. Investors have placed bids for a total of 38.53 crore shares, while the company is offering only 2.37 crore shares. With this, Arkade Developer aims to raise Rs 410 crore through this issue. The subscription period for this IPO will remain open until 19 September 2024.
The price band for the IPO has been set between Rs 121-128 per share, and the enthusiastic response, especially from retail investors, signals high expectations for the company’s future.
Arkade Developer IPO Subscription Breakdown: Impressive Numbers
As of the second day, the subscription breakdown highlights the strong participation across different investor categories:
- Qualified Institutional Buyers (QIBs): Subscribed 0.44 times
- Non-institutional Investors: Subscribed a massive 28.27 times
- Retail Investors: Subscribed 20 times
- Employee Reserve: Subscribed 19.25 times
The overall subscription, at 16.21 times, showcases widespread confidence in the Arkade Developer IPO.
Should You Invest in Arkade Developer IPO? What Experts Are Saying
For those wondering whether to invest in Arkade Developer’s IPO, brokerage firm Anand Rathi has provided a positive outlook. The firm has issued a ‘subscribe’ rating, based on the potential for business growth and the company’s strong financial performance.
In its research report on 16 September 2024, the brokerage highlighted Arkade Developer’s position in the Mumbai real estate sector as a major advantage. It advises investors to consider the IPO as a long-term investment opportunity, given the company’s strong foothold and future prospects in one of India’s most lucrative property markets.
How Will Arkade Developer Use the IPO Funds?
The proceeds from the IPO will be utilized for several key objectives. The company plans to invest heavily in the development of ongoing and future real estate projects. Additionally, the funds will be allocated for acquisition of new projects and general corporate purposes, further bolstering its position in the competitive real estate sector.
The book-running lead manager for this IPO is Unistone Capital Private Limited, and Bigshare Services is the official registrar to the issue.
Arkade Developer IPO Lot Size and Investment Details
For retail investors interested in this IPO, the minimum lot size required is 110 shares, which means an initial investment of at least ₹14,080. The company’s shares are set to be allotted on 20 September, and the listing date has been tentatively set for 24 September 2024.
Strong Grey Market Premium (GMP) for Arkade Developer IPO
The IPO has also garnered significant attention in the grey market. On 17 September, it was reported that the shares are trading at a premium of Rs 86 in the unlisted market. This suggests that the IPO could be listed at a price of Rs 214 per share, potentially giving investors a 67% profit upon listing.
About Arkade Developer
Arkade Developers Limited is a growing real estate company based in Mumbai, with a solid presence in the city’s competitive market. As of July 31, 2023, the company had developed 1.80 million sq ft of residential space. Between 2017 and the first quarter of FY 2023, Arkade launched 1,040 residential units within the Mumbai Metropolitan Region (MMR), successfully selling 792 units.
