Arkade Developers debuts on bourses at 36.71% premium, reaches intraday high of Rs 190

Mumbai-based real estate major Arkade Developers Ltd. made an impressive debut on the stock exchanges today, listing at Rs 175 per share, a substantial 36.71 per cent premium over its issue price of Rs 128. Post-listing, the stock surged further, hitting an intraday high of Rs 190, marking a 48.43 per cent rise in value.

The Arkade Developers IPO , which was entirely a fresh issue of 3.2 crore shares, raised Rs 410 crore. The bidding for the IPO took place between September 16 and September 19, 2024, with a price band set at Rs 121 to Rs 128 per share. The allotment of shares was finalised on September 20, 2024, with the shares getting listed on both BSE and NSE today.

The IPO saw strong investor participation across categories, with 3,18,75,000 shares being offered, divided as follows:

• 20 per cent (63,75,000 shares) reserved for Qualified Institutional Buyers (QIBs)
• 15 per cent (47,81,250 shares) allocated to Non-Institutional Investors (NIIs)
• 35 per cent (1,11,56,250 shares) allotted to Retail Individual Investors (RIIs)
• 30 per cent (95,62,500 shares) to Anchor Investors

Retail investors were able to apply with a minimum lot size of 110 shares, requiring a minimum investment of Rs 14,080. For small non-institutional investors (sNIIs), the minimum application size was 1,650 shares, amounting to Rs 211,200. Large non-institutional investors (bNIIs) had to invest in a minimum of 7,920 shares, with an investment of Rs 1,013,760.

Unistone Capital Pvt. Ltd. was the book-running lead manager for the IPO , and Bigshare Services Pvt. Ltd. acted as the registrar.

Arkade Developers Ltd., a prominent real estate development company based in Mumbai, Maharashtra, focuses on high-end residential projects. The company is involved in two main areas: the development of new residential buildings and the redevelopment of existing structures.

Between 2017 and Q1 2024, Arkade Developers launched 1,220 residential units and successfully sold 1,045 units in the Mumbai Metropolitan Region (MMR). By June 30, 2024, the company had developed approximately 2.2 million square feet of residential space and completed the redevelopment of over 1 million square feet.

Over the past two decades, the company has completed 28 projects, including those executed through partnerships, with a total built-up area exceeding 4.5 million square meters. As of June 30, 2024, Arkade Developers employed 201 permanent staff and had an additional 850 employees on a contract basis.

Objects of the Issue

• Funding development expenses for ongoing projects, including Arkade Nest, Prachi CHSL, and C-Unit.
• Acquisition of land for future real estate projects.
• General corporate purposes.

With a strong market debut and robust investor backing, Arkade Developers is poised to expand its portfolio in Mumbai’s highly competitive real estate sector.