Arkade Developers IPO Fully Subscribed on First Day: Retail Category Bids Highest

Key Details and GMP

The initial public offering (IPO) of Arkade Developers, a real estate company, was fully subscribed on the first day of bidding, with the retail category receiving the highest number of bids. The IPO received bids for 1.46 crore shares against the offer size of 1.02 crore shares, resulting in a subscription of 1.43 times. The retail category was subscribed 2.41 times, while the non-institutional investor category was subscribed 0.73 times and the qualified institutional buyer category was subscribed 0.67 times. The Gray Market Premium (GMP) for Arkade Developers shares stood at Rs 115, indicating a positive sentiment among investors. The GMP is the premium at which a stock is traded in the gray market before its listing. It reflects the market's expectation of the stock's performance after listing.

IPO Details

The Arkade Developers IPO comprises a fresh issue of equity shares worth Rs 180 crore and an offer for sale of up to 1.21 crore equity shares by the promoters and existing shareholders. The price band for the IPO has been set at Rs 272-275 per share. The IPO opened for subscription on November 7, 2022, and will close on November 9, 2022. The company plans to utilize the proceeds from the IPO to repay debt, fund ongoing and future projects, and for general corporate purposes.

Company Profile

Arkade Developers is a real estate company engaged in the development of residential, commercial, and township projects. The company has a presence in Mumbai, Thane, and Kalyan. Some of its key projects include Arkade Earth, Arkade Serene, and Arkade Navaratri.

Financial Performance

Arkade Developers reported a net profit of Rs 13.7 crore on revenue from operations of Rs 127.5 crore in the fiscal year 2022. In the first half of the fiscal year 2023, the company reported a net profit of Rs 8.1 crore on revenue from operations of Rs 81.1 crore.

Conclusion

The strong response to the Arkade Developers IPO indicates positive investor sentiment towards the company's growth prospects. The retail category receiving the highest number of bids reflects the company's strong brand recognition and the attractiveness of the real estate sector. Investors should carefully consider the company's financial performance, growth potential, and risk factors before making an investment decision.