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Introduction To Arkade Developers Ltd IPO
Arkade Developers’ IPO, valued at Rs 410.00 crores, is a book-built issue consisting of a 3.2 crore fresh issue of shares. Subscription for the Arkade Developers IPO begins on September 16, 2024, and ends on September 19, 2024.
The allocation for this IPO is anticipated to be confirmed on Friday, September 20, 2024. Arkade Developers’ IPO listing on BSE and NSE is tentatively scheduled for Tuesday, September 24, 2024.
The price band for Arkade Developers IPO ranges from Rs 121 to Rs 128 per share. The minimum lot size for an application is set at 110 shares. Retail investors need a minimum investment of Rs 14,080.
Small Non-Institutional Investors (sNII) must invest in at least 15 lots (1,650 shares), totalling Rs 2,11,200. Big Non-Institutional Investors (bNII) must invest in 72 lots (7,920 shares), totalling Rs 10,13,760.
Unistone Capital Pvt Ltd is the book-running lead manager for the Arkade Developers IPO. Bigshare Services Pvt Ltd is the registrar for the issue.
Arkade Developers Ltd IPO Details:
| Particulars | Details |
| IPO Date | September 16, 2024 to September 19, 2024 |
| Face Value | Rs 10 per share |
| Price Band | Rs 121 to Rs 128 per share |
| Lot Size | 110 Shares |
| Total Issue Size | 3,20,31,250 shares (aggregating up to Rs 410.00 Crore) |
| Fresh Issue | 3,20,31,250 shares (aggregating up to Rs 410.00 Crore) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre-issue | 15,36,26,016 |
| Shareholding post-issue | 18,56,57,266 |
Timelines of events
| Particulars | Details |
| IPO Open Date | Monday, September 16, 2024 |
| IPO Close Date | Thursday, September 19, 2024 |
| Basis of Allotment | Friday, September 20, 2024 |
| Initiation of Refunds | Monday, September 23, 2024 |
| Credit of Shares to Demat | Monday, September 23, 2024 |
| Listing Date | Tuesday, September 24, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 19, 2024 |
Shares, Lot size, and their value from different Applicant categories
| Application from different investors | Lots | Shares | Amount |
| Retail (Min) | 1 | 110 | Rs 14,080 |
| Retail (Max) | 14 | 1540 | Rs 1,97,120 |
| S-HNI (Min) | 15 | 1,650 | Rs 2,11,200 |
| S-HNI (Max) | 71 | 7,810 | Rs 9,99,680 |
| B-HNI (Min) | 72 | 7,920 | Rs 10,13,760 |
Different Investor categories and shares offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Arkade Developers Ltd Company details
Arkade Developers Limited is a real estate company in Mumbai, Maharashtra. The company focuses on creating luxury residential properties. The company’s operations can be categorised into two segments: constructing residential buildings on acquired land (new projects) and redeveloping existing buildings (Redevelopment Projects).
From 2017 to the first quarter (Q1) of 2024, the company has built 1,220 residential units and sold 1,045 units, in various markets in Mumbai Metropolitan Region (MMR), Maharashtra. As of June 30, 2024, it completed 2.20 million square feet of residential properties.
From CY 2003 to March 2024, the company has finished the redevelopment of 10 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai (through a partnership firm in which the company held a majority stake) with a total built-up area of 10,00,000 square feet (approximately).
Over the past two decades, Arkade Developers Limited has accomplished 28 projects, showcasing our extensive experience and capability. These include 11 standalone projects, 2 projects carried out through partnership firms, 8 projects executed by the promoter through his proprietorship, M/s Arkade Creations, and 9 projects through joint development agreements with other third parties.
The company has developed 28 projects, providing high-quality living spaces to more than 4,000 customers.
Arkade Developers Ltd. IPO GMP Details
The last observed Grey Market Premium (GMP) for Arkade Developers IPO was Rs 63 as of the last update on Sep 13, 2024, at 10:27 AM. The price band for the IPO is set between Rs 121.00 and Rs 128.00. Considering the cap price and today’s GMP, the estimated listing price for Arkade Developers IPO is Rs 191, indicating an expected percentage gain/loss per share of 49.22%.
Furthermore, the Arkade Developers IPO Retail Subject to Sauda stands at Rs 5,300. Meanwhile, the Arkade Developers’ IPO Small High Net Worth Individuals (HNI) subject to Sauda is yet to be determined.
Financials of Arkade Developers Ltd.
Extract from the financial statements for the past three financial years
| Particulars | As of 31-03-2024 | As of 31-03-2023 | As of 31-03-2022 |
| Assets (Rs in crores) | 575.01 | 555.41 | 369.97 |
| Revenue (Rs in crores) | 635.71 | 224.01 | 237.18 |
| Profit After Tax (Rs in crores) | 122.81 | 50.77 | 50.84 |
| Net Worth (Rs in crores) | 323.4 | 200.32 | 149.5 |
| Reserves and Surplus (Rs in crores) | 171.4 | 198.32 | 147.49 |
| Total Borrowing (Rs in crores) | 69.41 | 149 | 64.41 |
Key Ratios as of March 31, 2024
| KPI (Key Performance Indicator) | Values as of March 31, 2024 |
| Return on Equity (ROE) | 46.90% |
| Return on Capital Employed (ROCE) | 47.34% |
| Debt/Equity Ratio | 0.21:1 |
| Return on Net Worth (RoNW) | 46.90% |
| Price to Book Value (P/BV) | 6.02 |
| Profit after Tax (PAT) Margin (%) | 19.35 |
Arkade Developers Ltd. IPO RHP details
Related risks as per Red Herring Prospectus (RHP)
Internal Risks
a) There’s a risk related to successfully identifying redevelopment projects or acquiring suitable land for the company’s proposed new projects, which may adversely impact the business and the company’s growth.
b) The company has acquired single plots of land for development, but acquiring contiguous land parcels in the future may take time and effort.
c) Failure to acquire suitable parcels of land may impact the company’s development plans and growth strategies.
d) Thorough title searches are conducted as part of the company’s due diligence process, but a failure in this process could lead to costly litigation and significant liabilities.
Risks related to the completion of projects
The inability to complete the projects the company took by their expected completion dates or at all could hurt the business, its operations, and financial conditions. Further, the company is subject to penalty, if its clients’ projects aren’t completed within a stipulated period.
Risks related to key Materials and Labour supply
The company hasn’t entered into long-term agreements with respect to key materials for construction and supply of labour. Any significant price increase, shortage, delay, or disruption in labour or key materials supply may cause time or cost overruns or increase in company cost and affect our business prospects.
Risks related to investing in new lands
The company plans to use some of our money to buy land for future projects and general business needs. But it can’t be guaranteed that the land the company buys will be suitable or that the projects it develops there will make money. If it can find the right land for new projects, it could help its finances, business, and future growth.
Risks related to Competitors
The company competes with developers from around the world, across the country, and in local areas for land, selling units in projects, workforce resources, and skilled workers. It operates in an industry with intense competition, but its global reach and resilience make it a tough player. Competing effectively could result in a larger market share or lower operating margins.
Arkade Developers Ltd IPO FAQs
What are the Arkade Developers Limited’s Owner details?
The founder or the owner of Arkade Developers Limited is Mr. Mangilal Jain. He founded the company in the year 1986.
What is the Arkade Developers Ltd. IPO Open & Close date?
The opening and closing dates of Arkade Developers Ltd. IPO are September 16, 2024, and September 19, 2024, respectively.
When is the Arkade Developers Ltd. IPO allotment date?
The Arkade Developers Ltd. IPO allotment date is on Friday, September 20, 2024.
When is the Arkade Developers Limited IPO Listing Date?
The listing date of Arkade Developers Limited IPO is tentatively on Tuesday, September 24, 2024.
What is the Arkade Developers IPO Price Band?
The price band of Arkade Developers IPO is between Rs 121.00 and Rs 128.00.
From where can you download the offer-related documents of the Arkade Developers IPO?
You can download the offer-related documents of Arkade Developers IPO from the SEBI’s official website. The below links also redirect you to those documents.
- Red Herring Prospectus (RHP) of Arkade Developers IPO
- Draft Red Herring Prospectus (DRHP) of Arkade Developers IPO
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