NE BUSINESS BUREAU
CHENNAI/AHMEDABAD, SEPT 11
Maharashtra-based real estate developer Arkade Developers Ltd on Wednesday announced it is set to float its ₹ 410-crore initial public offering (IPO) on September 16. The initial share sale will conclude on September 19, and the bidding for anchor investors will open for a day on September 13.
The maiden public issue is entirely through a fresh issue of equity shares worth Rs 410 crore with no offer-for-sale (OFS) component.
- Price Band fixed at ₹ 121 per equity share to ₹ 128 per equity share of the face value of ₹ 10 each
- Anchor Investor Bidding Date – Friday, September 13, 2024
- Bid /Issue Opening Date – Monday, September 16, 2024, and Bid/ Issue Closing Date – Thursday, September 19, 2024
- Bids can be made for a minimum of 110 Equity Shares and in multiples of 110 Equity Shares thereafter
- A discount of ₹ 5.00 per Equity Share is being offered to Eligible Employees Bidding in the Employee Reservation Portion.
The company has already raised ₹20 crore through a pre-IPO placement round.
Proceeds from the issue will be used for the development of the company’s ongoing as well as upcoming projects and funding the acquisition of future real estate projects and general corporate purposes.
The Company, a leading player and amongst top 10 developers in terms of supply in select micro-markets of, and an established developer in, MMR, Maharashtra (Source: Anarock Report).
The Price Band of the Issue has been fixed from ₹121 per Equity Share to ₹128 per Equity Share. Bids can be made for a minimum of 110 Equity Shares and multiples of 110 Equity Shares thereafter.
Arkade Developers is a fast-growing real estate development company with a significant presence in Mumbai. As of July 31, 2023, it has developed 1.80 million square feet of residential property, including through partnership entities in which Arkade holds the majority stake.
Between 2017 and Q1 2023, the company launched 1,040 residential units and sold 792 residential units in different markets in the Mumbai Metropolitan Region (MMR) in Maharashtra.
In the last two decades, it has completed 28 projects, including 11 projects on a standalone basis and 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 ₹122.81 crore with a revenue of ₹635.71 crore for the financial year ended on March 31, 2024. The company’s bottomline came in at ₹50.77 crore with a revenue of ₹224.01 crore in the fiscal year 2022-23.
Arkade Developers has reserved shares worth ₹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.
The equity shares of the company will be listed on BSE and NSE.
Unistone Capital is the sole book-running lead manager (BRLM) to the issue, while Bigshare Services is the registrar for the issue.
