Arkade Developers IPO Opens On 16 Sept; Issue Size Rs 410 Cr
The IPO opens on 16 September and is scheduled to close on 19 September
The initial public offering (IPO) of Arkade Developers (ADL) opened on 16 September with an offer size of over Rs 400 crore. The Rs 410 crore IPO consisted exclusively of fresh issues with the price band fixed at Rs 121 to 128 per equity share.
The IPO opened on 16 September and is scheduled to close on 19 September. The allotment for the issue will be finalised on 20 September followed by its listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 24 September.
Unistone Capital is the book running lead manager, while Bigshare Services is the registrar to the offer.
Retail investors can bid for the maximum of 13 lots and upto multiple of 110 shares. Investing in one lot will require the minimum capital of Rs 14,080.
Expert Note
At the higher end of the price range, is ADL asking the sales ratio of 3.2 times, which is at a discount to the peer average. Historically, the company has concentrated on the western suburbs of Mumbai metropolitan region (MMR), but in recent years, firm has expanded into the eastern suburbs of Mumbai. This business growth strategy, along with its near debt-free status and consistent on-time project delivery, positions ADL for sustainable growth in the future. Thus, we recommend a ‘Subscribe’ rating for this issue, stated Choice Broking.
IPO Objectives
The net proceeds of Rs 250 crore from the fresh issue will be utilised towards development of ongoing projects and future acquisition of lands.
Additionally, the funds will also be used for funding capital expenditure requirements for 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 the 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 FY 23.
Overall, the revenue increased by 184 per cent, whereas PAT climbed 142 per cent between FY 23 and FY 24.
