Arkade Developers IPO subscribed nearly 10 times on Day 2 so far. Check GMP, other details

The initial public offer (IPO) of Arkade Developers, which opened for subscription on Monday, has been subscribed 9.8 times so far on the second day of the bidding process.

Around noon, the highest demand was driven by non-institutional investors, who subscribed to the issue 14.6 times, followed by retail investors, who booked the issue 13.14 times. The portion reserved for qualified institutional buyers received 16.5 lakh bids against 67.44 lakh shares allocated to them, representing a subscription of 24%.
Ahead of the issue opening, the GMP for Arkade Developers was Rs 86, indicating a 67% premium over the issue price at the upper price band.


The issue is a fresh equity sale of Rs 410 crore. In the public offer, approximately 50% is reserved for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.

Arkade Developers IPO price band

The price band has been fixed at Rs 121-128 per equity share, with investors able to bid for 110 shares per lot.

Arkade Developers IPO review

Analysts have advised investors to subscribe to the IPO, as the company is strategically positioned to benefit from the growing demand for real estate in the Mumbai metropolitan region, driven by rapid urbanization.

"Financial growth is expected to be fueled by its upcoming projects, a strategic focus on developments in Mumbai's eastern suburbs, and its blended business model. On a post-issue basis, the company trades 14.46x EV/EBITDA (FY24). We have a Subscribe rating for the issue," said Arihant Capital.

Other details

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

Arkade Developers is a leading real estate development company with a significant presence in Mumbai. Its operations focus on developing premium, aspirational lifestyle residential properties in the region.

As of June 2024, the company has developed 2.2 million square feet of residential property (including through partnership entities in which it holds the majority stake).
The business model prioritizes the development of high-end and premium, budget-friendly sustainable residential projects, with a focus on aesthetic design and lifestyle amenities.

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

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

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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