Arkade Developers Ltd, a real estate company with a strong existence in Mumbai, has seen interest in its IPO, which is open until September 19, 2024.
The company grew ₹122.4 crore from anchor investors before the IPO’s launch, signaling early belief in the offering. The price band has been fixed between ₹121-128 per share, with a lot size of 65 equity shares.
Subscription Status and Investor Interest
As of the third day of bidding, the IPO was subscribed more than 27 times, with non-institutional investors showing the charge, pursued by retail investors and eligible institutional buyers (QIBs).
Also, non-institutional investors has an interest 43.79 times over the available shares, underlining the strong market demand.
At the same time, the retail segment was oversubscribed 27.64 times, and QIBs accounted for 0.46 times of their reserved share, showcasing various interest across different investor types.
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Company Overview and Growth
Arkade Developers has set a strong foothold in Mumbai’s real estate market. As of July 31, 2023, the company had successfully finished projects spanning 1.80 million square feet of residential area.
With many different ongoing developments in the Mumbai Metropolitan Region (MMR), the company continues to grow its portfolio.
Between 2017 and the first quarter of 2023, Arkade raised 1,040 residential units, selling 792 of them across different markets within the MMR.
Distribution and Structure
The IPO gives 50% of the total shares to QIBs, 15% to non-institutional investors, and 35% to retail investors. Also, employees have been offered equity shares worth up to ₹2 crore, with a ₹5 per share discount as an extra benefit.
This structure seeks to manage institutional and retail participation, making sure that a broad range of investors can take part in this growth possibility.
Key References
Arkade Developers joins the IPO arena at a time when India’s real estate sector is undergoing strong demand, mainly in critical urban markets like Mumbai.
Investors are hopeful about the company’s strategic role and its future growth opportunities, caused by the ongoing urbanization and housing demands in the MMR.
With early arrows indicating to a successful IPO, Arkade is well-positioned to capitalize on its market existence and expansion strategies.
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Disclaimer
This article is for informational purposes only and should not be considered financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making investment decisions.
