The Arkade Developers IPO is making waves on its debut today, promising to shake up the bustling real estate market. With a robust initial response and a keen interest from investors, Arkade Developers Ltd is set to make a notable entry into the public market. Let’s dive into the crucial details and what this means for potential investors.
Arkade Developers IPO: The Essentials:
Arkade Developers, a prominent player in Mumbai’s real estate sector, is officially hitting the primary market today. The company’s initial public offering (IPO) has generated significant buzz, with key highlights that investors should note:
- Price Range: ₹121-128 per share
- Total Offering Size: ₹410 crore
- Anchor Investment Secured: ₹122.40 crore
- Subscription Dates: September 16 to September 19, 2024
- Lot Size: 65 equity shares
Subscription Status: A Strong Start:
On the first day of the Arkade Developers IPO, the subscription numbers are impressive. By 15:15 IST, the IPO was subscribed 4.26 times. Here’s a breakdown of the subscription status:
- Retail Investors: 6.37 times
- Non-Institutional Investors (NII): 4.68 times
- Qualified Institutional Buyers (QIBs): 22% of the portion
- Employee Portion: 6.15 times
This initial enthusiasm indicates strong market confidence in Arkade Developers’ growth potential.
Arkade Developers: Company Overview:
Arkade Developers is a well-established real estate development firm with a strong footprint in Mumbai. As of July 31, 2023, the company has developed 1.80 million square feet of residential property. Here’s a snapshot of their recent performance:
- Residential Units Introduced (2017-Q1 2023): 1,040 units
- Residential Units Sold: 792 units
- Revenue (FY 2023, 2022, 2021): ₹224.01 crore, ₹237.18 crore, ₹113.18 crore
The company’s strategic focus has been on the Mumbai Metropolitan Region (MMR), particularly the western suburbs.
Comparing Arkade Developers: A Peer Analysis:
When evaluating Arkade Developers’ IPO, it’s crucial to consider how the company stacks up against its peers. Here’s a comparison of P/E ratios for listed competitors:
- Keystone Realtors Ltd: P/E Ratio of 74.85
- Godrej Properties Ltd: P/E Ratio of 111.53
- Macrotech Developers Ltd: P/E Ratio of 78.46
- Suraj Estate Developers Ltd: P/E Ratio of 40.92
Arkade Developers’ P/E ratio is positioned competitively within this group, reflecting its strong market position and growth prospects.
Expert Opinions: Should You Subscribe?
Choice Equity Broking Pvt Ltd:
Choice Equity Broking offers a positive outlook on the Arkade Developers IPO. The brokerage highlights the company’s focus on luxurious residential properties in Mumbai and its successful track record of 28 completed projects. The EV/Sales ratio of 3.2x at the upper end of the pricing range is noted as lower than the peer average, making it an attractive investment.
Marwadi Financial Services:
Marwadi Financial Services provides a “Subscribe” rating, emphasizing that Arkade Developers is a leading player in MMR. With a post-issue share price of ₹6.61, the IPO is expected to debut at a P/E ratio of approximately 19x, which is relatively lower compared to its peers.
IPO Details: What Investors Need to Know?
The Arkade Developers IPO includes:
- Fresh Issue Size: 32,031,250 equity shares
- Face Value: ₹10 per share
- Pre-IPO Placement: ₹20 crore
Unistone Capital Pvt Ltd is managing the IPO as the book running lead manager, with Bigshare Services Pvt Ltd as the registrar.
Grey Market Premium: A Strong Indicator:
The Arkade Developers IPO is currently trading at a grey market premium of ₹80, indicating strong investor interest. This premium suggests an estimated listing price of ₹208 per share, which is 62.5% higher than the IPO price of ₹128.
Conclusion: Is Arkade Developers IPO a Good Bet?
With a strong subscription status, positive expert reviews, and a notable grey market premium, the Arkade Developers IPO appears to be a compelling investment opportunity. As always, potential investors should consider their individual financial goals and consult with a financial advisor before making any investment decisions.
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