Arkade Developers’ Rs.410 Crore IPO Set to Launch on September 16, 2024.

Mumbai-based real estate firm, Arkade Developers Ltd, has announced gearing up for its Initial Public Offering (IPO) worth Rs.410 crore. The IPO, scheduled to open on September 16, 2024, will be available for public subscription until September 19, 2024, while the bidding for anchor investors begins on September 13, 2024.

IPO Details & Fund Allocation

The IPO is a fully fresh issue of equity shares, raising Rs.410 crore with no offer-for-sale (OFS) component. According to the company’s Draft Red Herring Prospectus (DRHP), the funds will be used to acquire new land parcels, support ongoing  (viz. Arkade Nest, Prachi CHSL and C-Unit) and future projects, and for general corporate purposes. Notably, Arkade Developers has already secured Rs.20 crore through a pre-IPO placement round.

Business Overview

Arkade Developers has a good presence in the Mumbai real estate market. As of last year, the company had developed 1.80 million square feet of residential property, with a majority stake in several partnership entities. Since 2017, it has launched 1,040 residential units and sold 792 units across various markets within the Mumbai Metropolitan Region (MMR).

Arkade Developers reported revenues of Rs.635.72 crore in FY24, Rs.224.01 crore in FY23, slightly lower than the Rs.237.18 crore recorded in FY22. However, this still marks growth compared to FY21, when the company’s revenue stood at Rs 113.18 crore.

Developments

Last year, Arkade Developers announced its Rs.700 crore investment in three projects located in Mumbai: Arkade Nest in Mulund (West), Deep Shikhar C Unit in Goregaon (East), and Prachi in Vile Parle (East). The projects are expected to be completed over the next three to four years. Arkade has also adopted a blended approach of greenfield development and redevelopment to expand.

Conclusion: In conclusion, with its IPO, Arkade Developers is looking to strengthen its financial position and expand its land bank. The company’s focus on the growing Mumbai market, coupled with its growing real estate portfolio, makes it an interesting opportunity to look out for both institutional and retail investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.