Arkade Developers IPO Attracts Strong Investor Demand

Arkade Developers IPO saw significant interest from investors across all categories. The subscription period for the IPO opened on September 16 and closed on September 19, 2024. Following the subscription phase, allocations were finalized on September 20, and the eagerly awaited listing is expected to take place on Tuesday, September 24.

Strong Subscription Figures

The Arkade Developers IPO received overwhelming demand, with the issue being fully subscribed on its opening day, September 16. According to data provided by the BSE, the overall subscription reached an impressive 106.83 times the total issue size.

• Retail Investors subscribed 51.39 times the shares reserved for them.
• Non-Institutional Investors (NIIs) booked 163.02 times their allocated portion.
• Qualified Institutional Buyers (QIBs) showed strong interest, with 163.16 times subscription in their segment.

Grey Market Premium (GMP) Indicates High Demand

The shares of Arkade Developers are attracting high demand in the unlisted grey market. As of today, the grey market premium (GMP) for Arkade Developers’ shares stands at ₹63 per share, suggesting that shares are being traded at ₹63 above their issue price. This trend indicates that the estimated market price for Arkade shares could be ₹191 per share, reflecting a premium of 49.22% over the issue price of ₹128.

The grey market premium is seen as an indicator of investor sentiment and the likelihood of listing gains. In Arkade’s case, the strong GMP reflects positive market expectations.

IPO Details

Arkade Developers aims to raise ₹410 crore through this IPO by issuing 3.2 crore fresh equity shares. The proceeds will be used to finance ongoing real estate projects, acquire land for future development, and support the company’s general business operations.

• Price Band: The price range for the IPO is set between ₹121 and ₹128 per share.
• Subscription Period: The IPO opened on Monday, September 16, and closed on Thursday, September 19.

Company Background

Arkade Developers Ltd. is a well-established real estate company based in Mumbai, focusing primarily on residential developments. As of July 31, 2023, the company had completed 1.80 million square feet of residential projects. From 2017 to the first quarter of 2023, Arkade launched 1,040 residential units in the Mumbai Metropolitan Region (MMR), with 792 of them sold.

IPO Management

Unistone Capital Pvt Ltd is acting as the book-running lead manager for Arkade Developers’ IPO, while Bigshare Services Pvt Ltd is the registrar of the issue. Investors are keenly watching the listing, which is expected to generate significant market interest given the high subscription rate and grey market premium.

Arkade Developers’ strong growth, particularly in the competitive Mumbai real estate market, and the impressive subscription numbers reflect the company’s solid market position and investor confidence in its future prospects.