Arkade Developers IPO Lists At 37% Premium Amid Strong Subscription

The initial public offering (IPO) of Arkade Developers (ADL) listed with a 37 per cent premium at Rs 175 per equity share on the National Stock Exchange (NSE) against its issue price of Rs 128. The Rs 410 crore IPO consisted exclusively of fresh issues with the price band fixed at Rs 121 to 128 per equity share.

During its subscription phase, the issue garnered a total subscription of 113.39 times. The retail category closed with 53.78 times subscriptions, while qualified institutions closed with 172 times subscriptions. Unistone Capital was the book-running lead manager, while Bigshare Services was the registrar to the offer.

Expert Note
Arkade Developers is working towards becoming debt-free, which enhances its attractiveness to investors by ensuring that funds are not diverted towards debt repayment. Looking ahead, the company plans to expand into the eastern region of the Mumbai Metropolitan Region (MMR), Maharashtra, with a mix of commercial and residential developments. Given these issues, investors who have been allotted shares are advised to ‘book profits’ and exit their positions for the time being,” said Sagar Shetty, Research Analyst, Stoxbox.

IPO Objectives
The net proceeds of Rs 250 crore from the fresh issue will be utilised towards the development of ongoing projects and future acquisition of lands.

Additionally, the funds will also be used for funding capital expenditure requirements for the purchase of equipment and general corporate purposes.

Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.

Firm’s Financials
Arkade Developers registered a revenue of Rs 635 crore in FY 23-24 against Rs 224 crore in FY 22-23.

While the profit after tax (PAT) increased to Rs 122 crore in FY 24 against Rs 50.77 crore in FY23. Overall, the revenue increased by 184 per cent, whereas PAT climbed 142 per cent between FY23 and FY24.