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IPO of Arkade Developers: An overview and company insight
Indian high-end real estate market is dominated among others by Arkade Developers Limited in Mumbai, Maharashtra which is reputed for its luxurious residential projects. Since its establishment, this firm has concentrated on premium housing and accomplished numerous developments. Arkade Developers is involved in several redevelopment projects, thus having more than 4.5 million square feet of developed property and maintaining a stronghold in Mumbai’s fierce housing industry.

The business operations are categorized into two segments:

1. New Projects: These comprises of development and construction on sites owned or purchased by the company.
2. Redevelopment Projects: Arkade devotees focus at upgrading already existing structures located within prime areas inside Mumbai so as to realize their value

Their portfolio ranges from independent high-end houses to spacious gated communities as well as freehold standalone homes which they build themselves. In very simple words, Arkade Developers IPO offers an avenue through which the company can mobilize finance with an aim to expanding its business operations, launching new projects as well as enhancing its brand visibility.

Arkade Developers IPO 2023 Grey Market Premium (GMP)
It refers to the price at which IPO shares trade unofficially before being listed on the stock exchanges. This is a key indicator of investor sentiment and demand for the IPO.

Today, Arkade Developers IPO GMP is ₹60 which suggests that people are optimistic in the market. Investors often consider the GMP as a valuable tool for deciding whether an IPO is worth subscribing to.

The table below summarizes Arkade Developers IPO GMP over the recent days:

Here’s a good one. The Arkade Developers IPO has set its price band in between ₹121 and ₹128 as per share at face value of ₹10. In case you are a Retail investor, this implies that you need at least apply for 110 lots which would be equal to ₹14,080 at the upper price band.

The minimum application amount for HNIs (High Net-worth Individuals) is much greater than this. Given below is a table that presents the pricing details:

The mentioned price details expose how reasonable it is for retail investors, yet it presents vast amounts for HNIs.

Arkade Developers IPO Timelines at a Glance
The Arkade Developers IPO opens on September 16, 2024, for subscription and closes on September 19, 2024. By September 20, 2024, allotments will be finalized; shares shall be listed out on September 24, 2024.

Timeline for the IPO:

Arkade Developers IPO’s Book-running Lead Managers and Registrar
Arkade Developers IPO has Unistone Capital Pvt Ltd as its Book Running Lead Manager (BRLM). This is important in the execution of IPO as it entails investor relations, book building and pricing the issue. On the other hand, Bigshare Services Pvt Ltd is the registrar for this issue responsible for handling allotment processes and promptly addressing all investor concerns on refunds, share transfers and allotments among others.

Breakdown of Offer for Sale and IPO Size – Arkade Developers IPO
For Arkade Developers IPO, the total issue size is ₹410 crores consisting of a fresh issue of 3.2 crore shares. The fresh issue will assist the company in funding projects and meeting other corporate expenses. Unlike some IPOs that may include an Offer for Sale (OFS) component, Arkade Developers IPO is purely a fresh issue.

Utilization of Fresh Issuance and Technological Advancements – Arkade Developers IPO
Arkade Developers plans to utilize the proceeds from the IPO for:

Funding the development of its ongoing projects, including Arkade Nest.
Acquiring land for future projects.
General corporate purposes.
The company also plans to invest in technological advancements in construction, including the use of advanced materials and sustainable building techniques to reduce construction time and improve the quality of its projects.

Arkade Developers Limited Financial Information (Restated Consolidated)
Arkade Developers Limited’s revenue increased by 184% and profit after tax (PAT) rose by 142% between the financial year ending with March 31, 2024 and March 31, 2023.

                                                       Amount in Crore

Conclusion

The Arkade Developers IPO is a good and profitable opportunity to those wanting to invest their money in real estate, especially regarding premium residential projects. It also shows that the grey market has received a lot of attention from people who are positive about it. Arkade Developers’ record for success, efficient managers and important projects in prime areas put them in best positions for development.

However, prospective investors must remain mindful of the firm’s strong points such as being located within markets with high levels of demand among others during investment decision-making process.