Arkade Developers Limited is launching an IPO with a book-built issue size of ₹410 crores, entirely consisting of a fresh issue of 3.2 crore shares. The IPO opens for subscription on September 16, 2024, and closes on September 19, 2024.
The allotment is expected to be finalised on September 20, 2024, with a tentative listing date on the BSE and NSE scheduled for September 24, 2024. The price band for the IPO is set between ₹121 to ₹128 per share. Retail investors can apply for a minimum lot size of 110 shares, requiring an investment of ₹14,080.
Small Non-Institutional Investors (sNII) can invest in a minimum of 15 lots (1,650 shares) amounting to ₹2,11,200, while Big Non-Institutional Investors (bNII) can invest in 72 lots (7,920 shares) totalling ₹10,13,760. Unistone Capital Pvt Ltd is the book-running lead manager for the IPO, with Bigshare Services Pvt Ltd serving as the registrar.
Industry Outlook:
- India's real estate market is projected to grow to ₹65,000 crore by 2040, up from ₹12,000 crore in 2019, reflecting substantial sector expansion.
- By 2047, India's real estate sector is expected to reach $5.8 trillion, contributing 15.5% to GDP, up from 7.3% currently.
Arkade Developers IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding a part of the costs to be incurred in the development of the ongoing projects (viz. Arkade Nest, Prachi CHSL and C-Unit) (Funding Development Expenses),
- Funding acquisition of yet-to-be identified land for real estate projects.
- General Corporate Purposes.
About Arkade Developers Limited
Arkade Developers Limited is a prominent real estate development company specialising in high-end residential projects in Mumbai, Maharashtra. The company operates in two key segments: the development of new residential buildings on acquired land and the redevelopment of existing structures.
Between 2017 and Q1 2024, Arkade Developers launched 1,220 residential units and successfully sold 1,045 units across various markets in the Mumbai Metropolitan Region (MMR). As of June 30, 2024, the company has developed 2.20 million square feet of residential properties. Over the past two decades, Arkade Developers has completed 28 projects, including standalone developments, partnerships, and joint ventures, with a total built-up area exceeding 4.5 million square meters, serving over 4,000 customers.
The company has also completed 11 redevelopment projects in Mumbai, adding a built-up area of approximately 1,000,000 square feet. As of June 30, 2024, Arkade Developers employs 201 permanent staff and 850 contract-based employees.
Peer Details
The companies considered by Arkade Developers as its peers include:
- MacroTech Developers Limited
- Prestige Group Limited
- Kalpataru Limited
- Sheth Creators Limited
- Chandak Group Limited
- Oberoi Realty Limited
How to Check the Allotment Status of the Arkade Developers IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of Arkade Developers IPO
- Registered office: Arkade House, Opp. Bhoomi Arkade, Near Children’s Academy, A S Marg, Ashok Nagar, Kandivali (East), Mumbai - 400101, Maharashtra, India.
- Phone: +91 (22) 28874742
- E-mail: cs@arkade.in
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ million) | 6,347.36 | 2,201.52 |
| Profit After Tax (PAT) (in ₹ million) | 1,228.08 | 507.66 |
| Current Ratio (x) | 2.45 | 1.92 |
| Net Worth (in ₹ million) | 3,234.02 | 2,003.17 |
| Total Borrowings (in ₹ million) | 694.10 | 1,489.95 |
| Return on Equity (%) | 46.90% | 29.03% |
| Return on Capital Employed (RoCE) (%) | 50.07% | 25.00% |
| Earnings Per Share (in ₹) | 8.08 | 3.34 |
Know before investing
Strengths
6The strategic location of projects in high-demand MMR micro-markets.
20+ years in real estate, delivering 4.5 million sq. ft.
Consistently ranked among the top 10 developers in the MMR region.
89% of revenue from premium western MMR, Maharashtra.
Strong in-house resources for legal, development, and marketing.
Expertise in timely completion, exceeding RERA timelines by 18 months.
Risks
6Limited land availability in MMR could hinder future projects.
Delays in project completion risk financial and reputational damage.
Heavy reliance on third-party contractors may lead to delays.
Intense competition in MMR may reduce market share and margins.
Negative cash flows in past years could affect future operations.
Dependence on the MMR market exposes the company to regional downturns.
