Arkade Developers IPO: Mumbai-based developer raises Rs 122 crore from 9 anchor investors

Mumbai-based realty player Arkade Developers has raised Rs 122.40 crore from anchor investors ahead of initial public offer (IPO) which opens for subscription on Monday, September 16. The IPO Committee of the company on Friday alloted over 95.62 lakh equity shares to anchor investors at a price of Rs 128 per share.

The allocation was made to 9 investors according to the company filing to exchanges. The highest share was cornered by BNP Paribas Financial Markets ODI at 20.43%. It was followed by Intuitive Alpha Investment Fund PCC- Cell 1, Saint Capital Fund and Stern Global Fund VCC-Stern Multi Strategy Fund, each getting 16.34% share out of the total quota.

Societe Generale was allotted 8.17% while Gagandeep Credit Capital Private Limited, Rajasthan Global Securities Private Limited, NAV Capital VCC and Visionary Value Fund were others who got the shares of the company.

About Arkade Developers

Arkade Developers is a leading real estate development company with a significant presence in Mumbai. Its operations are concentrated on the development of premium aspirational lifestyle residential premises in the region.

As of July 31, 2023, they have developed 1.80 million square feet of residential property (including through partnership entities in which Arkade holds the majority stake).

They are also engaged in the development of new projects and redevelopment of existing premises, and between 2017 and Q1 2023, have launched 1,040 residential units and sold 792 residential units in different markets in the MMR.

From CY 2003 to March 2023, the company has successfully completed redevelopment of 9 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai (through a partnership firm in which Arkade holds the majority stake) with a combined constructed area of 6,48,000 square feet.

While the company's initial projects were stand-alone residential buildings, their current portfolio of ongoing projects includes gated communities such as Arkade Nest, Arkade Crown and Arkade Aspire, Arkade Prime and Arkade Aura.

About Arkade Developers IPO

The issue, which is completely a fresh equity sale of Rs 410 crore, will close on September 18. The price band has been fixed at Rs 121-128 per equity share.

In the public offer, about 50% is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.

Arkade Developers IPO proceeds

The company proposes to utilise the net proceeds towards development of their ongoing projects, and their upcoming projects and funding acquisition of future real estate projects and general corporate purposes.

Arkade Developers Financials

Arkade Developers revenue in FY24 increased 189% year-on-year to 635 crore, while net profit also more than doubled to Rs 123 crore in the same period.

Arkade Developers IPO lead managers

Unistone Capital is the sole Book Running Lead Manager (BRLM) to the issue. The equity shares of the company will be listed on BSE and NSE.

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