MUMBAI, 10 SEPTEMBER, 2024 (TGN): Arkade Developers Limited IPO will open for bidding on September 16. The company is offering its shares in the range of Rs 121-128 a peice. Investors can apply for the issue until Thursday, September 19, with a lot size of 110 equity shares and its multiples thereafter.
Arkade Developers is a real estate development company focused on developing high-end, sophisticated lifestyle residential developments in Mumbai, Maharashtra. The company’s business can be divided into two segments fresh construction of residential buildings on land acquired by the company and redevelopment of existing buildings.
The IPO of Arkade Developers entirely includes a sale of 3.20 crore fresh equity shares amounting to Rs 410 crore. The net proceeds from the issue shall be utilized towards funding is part of the costs to be incurred in developing the Ongoing Projects and funding acquisition of yet-to-be-identified land for real estate projects and general corporate purposes.
Arkade is involved in the development of new projects and the redevelopment of existing buildings. The company launched 1,220 residential units and sold 1,045 residential units in various markets in MMR, Maharashtra between 2017 and June 30, 2024. It has developed 2.20 million square feet of residential properties as of Q1FY25.
In the last two decades, it has completed 28 projects including 11 projects on a standalone basis including 2 projects executed through partnership firms. The company held a majority stake, 8 projects executed by the promoter through his proprietorship, Arkade Creations, and 9 projects through joint development agreements.
Arkade Developers reported a net profit of Rs 122.81 crore with a revenue of Rs 635.71 crore for the financial year ended on March 31, 2024. The company’s bottomline came in at Rs 50.77 crore with a revenue of Rs 224.01 crore in the fiscal year 2022-23.
Arkade Developers has reserved shares worth Rs 2 crore for the eligible employees of the company. 50 per cent of the net issue has been allocated towards qualified institutional bidders (QIBs), while 15 per cent of the shares have been reserved for non-institutional investors (NIIs). Retail investors will have 35 per cent of the net offer reserved for them.
Unistone Capital is the sole book running lead manager of the Arkade Developers IPO, while Bigshare Services is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on 24 September tentatively.
