Arkade Developers IPO: The unlisted shares of Arkade Developers are seeing a strong premium in the grey market as their initial public offering (IPO) opens for subscription today. According to various sources monitoring grey market activity, shares of Arkade Developers are trading at a premium of Rs 80, equating to a GMP of 62.5% against the IPO’s upper price band of Rs 128, indicating the company’s strong market appeal.

The IPO aims to raise Rs 410 crore through a fresh issue of 32,031,250 equity shares. Arkade Developers has already raised Rs 122.40 crore from anchor investors as of Friday, September 13, 2024.

The IPO is priced between Rs 121-128 per share with a lot size of 110 shares, meaning investors need a minimum of Rs 14,080 to participate. From the IPO proceeds, Arkade Developers plans to allocate Rs 250 crore for development expenses and around Rs 143.5 crore for acquiring land for future real estate projects, with the remaining funds used for general corporate purposes.

Bigshare Services is the registrar for the IPO, while Unistone Capital is the lead manager. The IPO subscription period closes on Thursday, September 19, 2024. Following the allotment process, shares are expected to be credited to demat accounts on Monday, September 23, 2024, and listed on the BSE and NSE on Tuesday, September 24, 2024.

Arkade Developers IPO Review:

• Deven Choksey Research: Recommends subscribing to the IPO, citing a strong revenue CAGR of 66% from FY22 to FY24, along with EBITDA and PAT CAGRs of 75% and 55%, respectively. The company also has a notable ROE and ROCE of 47%.
• Choice: Also recommends subscribing, highlighting the company’s EV/Sales ratio of 3.2x at the higher price range, which is at a discount compared to peers. Choice notes that Arkade’s expansion strategy and near debt-free status indicate sustainable growth.

About Arkade Developers (ADL):
Arkade Developers focuses on developing premium residential properties in Mumbai, particularly within the mid-premium segment. The company follows an asset-light model, engaging in joint ventures to deliver high-quality residential spaces.