Arkade Developers Limited is set to launch its Initial Public Offering (IPO) on September 16, 2024, aimed at raising ₹410 crores. The company, a major player in Mumbai’s premium residential real estate market, is offering shares through a Fresh Issue of 320.37 lakh equity shares. The subscription window remains open until September 19, 2024, with allotment set to be finalized on September 23, 2024, and shares expected to list on the BSE and NSE on September 24, 2024.

Arkade Developers IPO Details: The price band for the IPO is between ₹121 and ₹128 per equity share, and investors can place bids in lots of 110 shares. For retail investors, this translates to a minimum investment of ₹14,080, while High-Net-Worth Individuals (HNIs) can invest with a minimum of 15 lots (1,650 shares), totaling ₹211,200. Unistone Capital Private Limited is the Book Running Lead Manager (BRLM) for this issue, and Bigshare Services Private Limited is the registrar.

Grey Market Premium (GMP): The Grey Market Premium (GMP) for Arkade Developers is currently expected to range between ₹70 and ₹75, indicating a potential listing gain of 55% to 60%. While the GMP provides insights into market sentiment, it should not be relied upon for exact price predictions, as it depends on demand and supply in an unregulated market. It is always advisable to consider fundamental data when making investment decisions.

Objectives of the IPO: The proceeds from the Fresh Issue will be utilized for:

Funding the development of their ongoing projects, including Arkade Nest, Prachi CHSL, and C-Unit, for a total of ₹2,500 million.

Acquisition of new land for future real estate projects and general corporate purposes.

Financial Overview: Arkade Developers has shown strong financial growth in the last few years. The revenue for Fiscal 2024, 2023, and 2022 stood at ₹6,357.12 million, ₹2,240.13 million, and ₹2,371.82 million, respectively. The company’s EBITDA for these periods was ₹1,693.75 million, ₹683.25 million, and ₹699.72 million. Profit After Tax (PAT) saw consistent growth, with ₹1,228.08 million in FY24, ₹507.66 million in FY23, and ₹508.44 million in FY22. With a pre-issue EPS of ₹8.08 and a post-issue EPS of ₹6.60, the pre-issue P/E ratio stands at 15.84x, while the post-issue P/E ratio is 19.39x, lower than the industry average of 76.44x.

The company's Return on Capital Employed (ROCE) for FY24 is an impressive 47.34%, with a Return on Equity (ROE) of 46.90%, making it a strong contender in the real estate sector.

IPO Subscription and Anchor Investors: Arkade Developers raised ₹122.4 crores from Anchor Investors by allocating 9,562,500 shares at ₹128 per share. Anchor investors include major institutional buyers, reflecting strong initial interest. The public subscription period runs from September 16 to September 19, 2024, and real-time updates will be provided during this window.

How to Check IPO Allotment Status: The IPO allotment will be finalized on September 23, 2024. Investors can check the status of their allotment by visiting the registrar’s website and following these steps:

Navigate to the IPO allotment status page.

Select Arkade Developers Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to check the allotment status.

IPO Review and Recommendation: Arkade Developers is a well-established brand in Mumbai’s premium residential real estate sector, with a track record of delivering quality projects. The IPO is attractively priced, and the financial performance supports this valuation. The company's revenue growth, coupled with its high ROCE and ROE, suggests potential for both listing gains and long-term investment. The Grey Market Premium (GMP) further indicates strong demand for the shares. Investors, especially those seeking exposure to real estate and premium residential projects, should consider subscribing.

Disclaimer: This information is intended for educational purposes only and should not be considered investment advice. Investors should perform their own research or consult financial professionals before making investment decisions. The information provided is based on public data and may be subject to changes.

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