The Arkade Developers IPO, amounting to Rs 410.00 crores, is being issued as a book-built issue. The entire issue consists of 3.2 crore fresh shares.
Subscription for the Arkade Developers IPO is scheduled to be opened on September 16, 2024, and closed on September 19, 2024. The allotment for the Arkade Developers IPO is expected to be finalized by Friday, September 20, 2024. The Arkade Developers IPO is expected to be listed on BSE and NSE, with a tentative listing date set for Tuesday, September 24, 2024.
The price band for the Arkade Developers IPO has been set at ₹121 to ₹128 per share. A minimum lot size of 110 shares has been required for an application. The minimum investment amount required by retail investors has been set at ₹14,080. For sNII, the minimum lot size investment is set at 15 lots (1,650 shares), amounting to ₹211,200, while for bNII, it is set at 72 lots (7,920 shares), amounting to ₹1,013,760.
Refer to Arkade Developers IPO RHP for brief information.
| IPO Date | September 16, 2024 to September 19, 2024 |
| Listing Date | September 24, 2024 |
| Face Value | ₹ 10 / Share |
| Price Band | ₹ 121 to ₹ 128 / Share |
| Lot Size | 110 Shares |
| Total Issue Size | 32,031,250 share (Aggregating up to ₹410.00 Cr) |
| Fresh Issue | 32,031,250 (Aggregating up to ₹410.00 Cr) |
| Offer for Sale | |
| Employee Discount | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 153,626,016 |
| Share holding post issue | 185,657,266 |
| Market Maker portion |
Arkade Developers Limited IPO opens on September 16, 2024, and closes on September 19, 2024.
| IPO Open Date | September 16, 2024 |
| IPO Close Date | September 19, 2024 |
| Basis of Allotment | September 20, 2024 |
| Initiation of Refunds | September 23, 2024 |
| Credit of Shares to Demat | September 23, 2024 |
| Listing Date | September 24, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM, September 19, 2024 |
A minimum of 110 shares and multiples thereof can be bid for by investors. The minimum and maximum investment by retail investors and HNIs, in terms of shares and amount, are depicted in the table below.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 110 | Rs.14,080 |
| Retail (Max) | 14 | 1,540 | Rs.197,120 |
| S-HNI (Min) | 15 | 1,650 | Rs.211,200 |
| S-HNI (Max) | 71 | 7,810 | Rs.999,680 |
| B-HNI (Min) | 72 | 7,920 | Rs.1,013,760 |
| HNI (Min) |
| Share Holding Pre Issue | 85.58% |
| Share Holding Post Issue |
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | |
|
| Market Maker Shares Offered | |
|
| Other Shares Offered | |
|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
|
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
|
| bNII > ₹10L | |
|
| sNII < ₹10L | |
|
| Retail Shares Offered | Not less than 35.00% of the Offer |
|
| Employee Shares Offered | |
|
| Total Shares Offered | |
| Bid Date | |
| Shares Offered | |
| Anchor Portion Size (In Cr.) | |
| Anchor lock-in period end date for 50% shares (30 Days) | |
| Anchor lock-in period end date for remaining shares (90 Days) |
Arkade Developers Ltd. (ADL) is leading a real estate development firm that primarily focuses on the development of high-class lifestyle residential premises in Mumbai, Maharashtra. The services of the firm are broadly classified into two categories: (i) development / construction of residential spaces on firm-acquired land and (ii) restoration of existing premises (Redevelopment Projects). As on June 30, 2024, the developers has developed nearly 2.20 million square feet of residential property (including through partnership entities in which it holds the majority stake).
In MMR, Maharashtra, the company develops new projects and renovates existing ones. From 2017 to Q1 2024, it launched 1,220 residential units and sold 1,045 residential units in various marketplaces. With a combined constructed area of one million square feet (approximately) from CY 2003 to March 2024, it has successfully completed the redevelopment of ten projects in the western suburbs of Mumbai and one project in south-central Mumbai (through a partnership firm in which it holds the majority stake). In particular, it has a successful track record of completing projects on time.
Generally speaking, ADL has financed its projects mostly with a combination of internal accruals and promoter stock. Its net debt to equity ratio was 0.14 as of March 31, 2024. Right now, it mostly operates in suburbs on the east and west coast. As of June 30, 2024, three of the company's six ongoing projects—three of which are new projects and three of which are redevelopment projects—accounted for fifty percent of each project's underdevelopment.
As of June 30, 2024, its upcoming projects include six in MMR, Maharashtra: one new project, Arkade Rare, in Bhandup, which is owned by Copper Rollers Private Limited; five redevelopment projects, including Arkade Vistas and Arkade Views in Goregaon East; two projects, Municipal Employees Arunachal Co-operative Housing Society and Maheshwar Niwas Co-operative Housing Society, in Santacruz West; one project, Laxmi Ramana Co-operative Housing Society, in Goregaon West; and one project, Nutan Ayojan Nagar Co-operative Housing Society, in Malad West. Apart from the projects that are now in the works, as of June 30, 2024, the company has received letters of intent for two redevelopment projects, but no contract has been executed yet. The total developable area of its current and upcoming projects is 3.7 million square feet. It employed 201 people on payroll as of June 30, 2024, and another 850 people on contract.
| 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 | 6.61 |
| P/E (x) | 16.01 | 19.35 |
The Net Proceeds from the Issue are proposed to be utilized by the Company towards the following objects.
Part of the costs to be incurred in developing the Ongoing Projects (viz. Arkade Nest, Prachi CHSL, and C-Unit) is to be funded for the development expenses.
The acquisition of yet-to-be-identified land for real estate projects and general corporate purposes is to be funded.
Arkade Developers Limited Arkade House, Opp. Bhoomi Arkade, |
Bigshare Services Pvt Ltd Phone: +91-22-6263 8200 |
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