The Arkade Developers Limited Initial Public Offering (IPO) is a significant opportunity for investors to participate in the growth of a well-established real estate development company. With a book-built issue size of ₹410 crores, the IPO opens on September 16, 2024, and closes on September 19, 2024. The shares are expected to list on BSE and NSE, with a tentative listing date of September 24, 2024.
Arkade Developers Limited has a strong presence in Mumbai’s real estate market, focusing on high-end residential developments and redevelopment projects. Below, you’ll find detailed information regarding the IPO, the company’s financial performance, and how to apply for shares.
About Arkade Developers Limited
Founded in [Year], Arkade Developers Limited has become a leading name in the real estate sector, focusing primarily on residential projects in Mumbai. The company operates in two main areas: the development of new residential buildings and the redevelopment of existing buildings.
Key Highlights:
- Developed Area: Over 4.5 million square meters across various projects.
- Residential Units Sold: 1,045 units between 2017 and Q1 2024.
- Employees: 201 permanent employees and 850 contract-based workers (as of June 30, 2024).
Arkade Developers is known for delivering premium housing projects that cater to modern, sophisticated lifestyles. Their portfolio includes both new developments and large-scale redevelopment projects, making them a trusted name in Mumbai’s competitive real estate market.
Arkade Developers IPO Details
The Arkade Developers IPO is a fresh issue, with a total offering size of ₹410 crores. Below are the detailed parameters of the IPO:
| IPO Parameter | Details |
|---|---|
| IPO Size | ₹410 crores |
| IPO Price Band | To be announced |
| Face Value of Each Share | ₹10 per share |
| IPO Type | Book Built Issue |
| Shares Offered | To be announced |
| Lot Size | To be announced |
| Minimum Investment | To be announced |
| Listing Exchange | BSE, NSE |
Key Dates of the IPO
It is important for investors to keep track of the following critical dates associated with the IPO process:
| Event | Date |
|---|---|
| IPO Open Date | Monday, September 16, 2024 |
| IPO Close Date | Thursday, September 19, 2024 |
| Allotment Date | Friday, September 20, 2024 |
| Initiation of Refunds | Monday, September 23, 2024 |
| Credit of Shares to Demat | Monday, September 23, 2024 |
| Listing Date | Tuesday, September 24, 2024 |
IPO Reservation
The Arkade Developers IPO is divided into various investor categories to ensure equitable allocation. Below is the reservation breakdown for different investor segments:
| Investor Category | Shares Offered |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50.00% of the net offer |
| Retail Individual Investors (RII) | Not less than 35.00% of the offer |
| Non-Institutional Investors (NII/HNI) | Not less than 15.00% of the offer |
Promoter Shareholding
The promoter of Arkade Developers Limited is Mr. Amit Mangilal Jain. The company’s promoter will dilute part of their shareholding through this IPO.
| Shareholding | Pre-Issue (%) | Post-Issue (%) |
|---|---|---|
| Promoters | 85.58% | To be announced |
Financial Performance
Arkade Developers Limited has delivered strong financial growth over the past few years, recording significant increases in revenue and profit after tax (PAT). Between FY 2023 and FY 2024, the company saw a 184% increase in revenue and a 142% rise in PAT. Below is a summary of the company’s financial performance for the past three years:
| Financial Metrics (₹ Crore) | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Total Assets | 575.01 | 555.41 | 369.97 |
| Revenue | 635.71 | 224.01 | 237.18 |
| Profit After Tax (PAT) | 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 | 149.00 | 64.41 |
Key Financial Ratios (As of March 31, 2024)
| KPI | Values |
|---|---|
| Return on Equity (ROE) | 46.90% |
| Return on Capital Employed (ROCE) | 47.34% |
| Debt-to-Equity Ratio | 0.21 |
| Return on Net Worth (RoNW) | 46.90% |
| PAT Margin | 19.35% |
Objectives of the IPO
Arkade Developers Limited intends to use the net proceeds from the IPO for the following purposes:
- Funding Development Expenses: A portion of the funds will be allocated to ongoing projects such as Arkade Nest, Prachi CHSL, and C-Unit.
- Acquisition of Land: The company plans to acquire land for future real estate projects.
- General Corporate Purposes: The remaining funds will be utilized for general corporate expenses and operational requirements.
Company’s Business Model and Projects
Arkade Developers Limited focuses on two primary segments in real estate:
- New Residential Projects: The company is involved in the development and construction of high-end residential buildings on land it has acquired.
- Redevelopment Projects: Arkade also specializes in redeveloping existing residential buildings, particularly in Mumbai’s western and southern suburbs.
Key Projects:
- Arkade Nest: A luxury residential project aimed at providing modern, sophisticated housing solutions.
- Prachi CHSL: A redevelopment project that focuses on revamping older residential buildings and providing new, upgraded living spaces.
- C-Unit: A residential project designed to cater to urban professionals and families.
Since 2003, the company has completed 28 projects and has a total developed area of over 4.5 million square meters. As of June 30, 2024, Arkade has developed approximately 2.20 million square feet of residential properties.
Why Invest in Arkade Developers IPO?
Arkade Developers Limited presents a strong investment case for the following reasons:
- Proven Track Record: With over two decades of experience, the company has a solid reputation in Mumbai’s real estate market.
- Impressive Financial Growth: The company has shown substantial revenue and profit growth, which is expected to continue in the coming years.
- Expanding Project Portfolio: Arkade Developers is continually launching new projects while maintaining a strong focus on redevelopment.
- Attractive Financial Ratios: High ROE and ROCE ratios highlight the company’s operational efficiency and profitability.
- Strong Market Demand: Mumbai’s residential real estate market continues to grow, providing opportunities for Arkade Developers to expand further.
Risks Associated with the IPO
While Arkade Developers presents an attractive investment opportunity, there are certain risks to consider:
- Real Estate Market Volatility: The real estate sector is subject to fluctuations due to changes in economic conditions, regulations, and consumer demand.
- Project Delays: Any delays in the completion of ongoing or future projects could impact the company’s revenue and profitability.
- Regulatory Risks: Changes in government policies or local regulations may affect the company’s operations, especially in the redevelopment segment.
How to Apply for Arkade Developers IPO
Investors can apply for the Arkade Developers IPO through various platforms, including their stockbroker or banking portal. The following steps outline how to apply:
Step-by-Step Process:
- Login: Log in to your net banking or stockbroker account.
- Select IPO: Navigate to the IPO section and choose “Arkade Developers Limited IPO.”
- Enter Bid Details: Enter the number of shares and the price within the price band (to be announced).
- Confirm Payment: Complete the application using the ASBA (Application Supported by Blocked Amount) process or UPI payment method.
- Submit: Submit the application before the IPO closing date.
Post-Listing Share Performance
After listing, investors can monitor the performance of Arkade Developers Limited shares on the BSE and NSE. With the company’s strong financials and expansion plans, the stock is expected to generate interest among both retail and institutional investors.
