Arkade Developers Limited, a real estate development company, is set to launch its Initial Public Offering (IPO) on September 16, 2024. The company aims to raise ₹410 crores through the IPO.
Key Details:
- Issue Type: Main Board IPO
- Issue Size: ₹410 crores (Fresh Issue)
- Face Value : ₹10 per share
- Lot Size : 110 Shares
- Price Band: ₹121-₹128 per share
- Issue Open Date: September 16, 2024
- Issue Close Date: September 19, 2024
- Expected Listing Date: September 24, 2024
- Lead Managers: Axis Capital Limited, ICICI Securities Limited
- Registrar: Bigshare Services Private Limited
Timeline
| IPO Open Date: | September 16, 2024 |
| IPO Close Date: | September 19 , 2024 |
| Basis of Allotment: | September 20, 2024 |
| Refunds: | September 23, 2024 |
| Credit to Demat Account: | September 23, 2024 |
| IPO Listing Date: | September 24, 2024 |
About Company
Arkade Developers Limited is a real estate development company based in Mumbai, Maharashtra, India. The company has been operating for over three decades and is known for developing high-end, sophisticated lifestyle residential developments.
Core Business:
- Residential Development: Arkade Developers primarily focuses on developing residential projects, including luxury apartments and residential complexes.
- Redevelopment Projects: The company also engages in the redevelopment of existing buildings, transforming them into modern residential spaces.
Market Position:
- Arkade Developers is a well-established player in the Mumbai real estate market, with a reputation for quality construction and attention to detail.
- The company has a strong focus on delivering premium residential projects in prime locations within Mumbai.
Future Outlook:
- The Indian real estate market, particularly in Mumbai, is expected to continue growing, driven by urbanization and rising incomes.
- Arkade Developers aims to expand its operations and develop more projects in the future, leveraging its expertise in the real estate sector.
Here are some resources to learn more about company
- Read DRHP Here
Objective
The primary objectives of the Arkade Developers Limited IPO are:
- Raising Capital: The company aims to raise ₹410 crores through the IPO, which will be used for:
- Expansion: Funding the development of new real estate projects.
- Working Capital: Meeting the day-to-day operational expenses of the business.
- General Corporate Purposes: Supporting other growth initiatives and strategic investments.
- Brand Visibility: The IPO will increase the visibility of Arkade Developers among investors and the general public, enhancing its brand recognition and credibility.
- Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.
By achieving these objectives, Arkade Developers Limited aims to strengthen its financial position, expand its business, and enhance its market presence.
POSITIVE
- Strong Brand: Arkade Developers is a well-established real estate developer in Mumbai, known for its quality projects.
- Prime Locations: The company focuses on developing projects in prime locations, which can attract premium buyers.
- Experienced Management: A seasoned management team can contribute to the company’s success.
NEGATIVE
- Regional Focus: Arkade Developers primarily operates in Mumbai, limiting its national reach.
- Economic Downturns: The real estate market can be sensitive to economic fluctuations, impacting demand for properties.
- Regulatory Changes: Changes in government policies or regulations related to real estate can affect the industry.
Financial Review of Arkade Developers Limited
So, How Does Arkade Developers Limited IPO Fare in Terms of Financials ?
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 575.01 | 555.41 | 369.97 | |||||||||||||||||||||||||||
| Revenue | 635.71 | 224.01 | 237.18 | |||||||||||||||||||||||||||
| Profit After Tax | 122.81 | 50.77 | 50.84 | |||||||||||||||||||||||||||
| Net Worth | 323.4 | 200.32 | 149.5 | |||||||||||||||||||||||||||
| Reserves and Surplus | 171.4 | 198.32 | 147.49 | |||||||||||||||||||||||||||
| Total Borrowing | 69.41 | 149 | 64.41 | |||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||
Key Observations:
- Assets: Assets have seen a decline of -3.41% from ₹555.41 crore in March 2023 to ₹575.01 crore in March 2024.
- Revenue: Revenue has significantly decreased by -64.76% from ₹224.01 crore in March 2023 to ₹635.71 crore in March 2024.
- Profit After Tax: Profit After Tax has also significantly declined by -58.66% from ₹50.77 crore in March 2023 to ₹122.81 crore in March 2024.
Arkade Developers Limited IPO Valuation :
| KPI | Values |
|---|---|
| ROE | 46.90% |
| ROCE | 47.34% |
| Debt/Equity | 0.21 |
| RoNW | 46.90% |
| P/BV | 6.02 |
| PAT Margin (%) | 19.35 |
Arkade Developers Limited IPO – SWOT Analysis
Strengths
- Established Brand: Arkade Developers is a well-established real estate developer in Mumbai.
- Prime Locations: The company focuses on developing projects in prime locations.
- Experienced Management: A seasoned management team can contribute to the company’s success.
- Focus on Quality: Arkade Developers is known for delivering high-quality residential projects.
Weaknesses
- Regional Focus: The company primarily operates in Mumbai, limiting its national reach.
- Economic Downturns: The real estate market can be sensitive to economic fluctuations.
- Regulatory Changes: Changes in government policies or regulations related to real estate can affect the industry.
Opportunities
- Expanding Geographic Reach: Entering new markets within India or exploring international expansion.
- Diversifying Product Offerings: Expanding into commercial real estate or mixed-use developments.
- Technology Adoption: Leveraging technology for project management, marketing, and customer relationship management.
Threats
- Economic Slowdowns: A slowdown in the economy can impact demand for real estate.
- Competition: The real estate market is competitive, with both established players and new entrants.
- Regulatory Changes: Changes in government policies or regulations related to real estate can affect the industry.
COMPETITIVE ANALYSIS: MARKET PEERS
Arkade Developers Limited operates in a competitive real estate market in Mumbai. Understanding its key competitors is essential for assessing the company’s market position and growth potential.
Key Competitors
- Godrej Properties: A leading real estate developer with a strong presence in Mumbai and other major cities.
- Oberoi Realty: Another prominent real estate developer known for luxury projects.
- Macrotech Developers (Lodha): One of the largest real estate developers in India.
- Hiranandani Developers: A well-established real estate developer with a focus on residential and commercial projects.
Arkade Developers Limited IPO GMP
- Grey market premium as on 19-09-2024 = ₹85 / Share
Disclaimer:
- IPO Grey Market Premium (Arkade Developers Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Arkade Developers Limited IPO
🔴 Live Subscription Status 🔴
19/09/2024 5:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 | Day 4 |
| Qualified Institutional Buyers(QIBs) | 95,62,500 | 0.25 | 0.44 | 0.61 | 163.16 |
| Non Institutional Investors(NIIs) | 63,75,000 | 8.42 | 28.26 | 58.80 | 162.35 |
| Retail Individual Investors(RIIs) | 47,81,250 | 8.75 | 19.99 | 33.26 | 49.81 |
| Employees | 1,72,413 | – | 19.25 | 31.47 | 48.77 |
| Total | 1,11,56,250 | 6.31 | 19.25 | 29.42 | 105.89 |
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