Arkade Developers Ltd has set the price band for its upcoming initial public offering (IPO) at Rs 121-128 per share for a total issue size of Rs 410 crore. The IPO will be open for public subscription from September 16 to September 19, while anchor investor bidding will open on September 13. The entire offering consists of a fresh issue of equity shares with no offer-for-sale (OFS) component. Post-issue, the company's valuation is estimated to exceed Rs 2,300 crore, as per brokerage estimates. The proceeds from the IPO will be used for the development of ongoing and upcoming real estate projects, acquisition of future projects, and general corporate purposes.
Arkade Developers, a growing real estate company with a significant presence in Mumbai, has developed 1.80 million square feet of residential property as of July 31, 2023, including through partnerships. Between 2017 and Q1 2023, the company launched 1,040 residential units and sold 792 units in the Mumbai Metropolitan Region (MMR). For the fiscal years 2021, 2022, and 2023, the company reported revenues of Rs 113.18 crore, Rs 237.18 crore, and Rs 224.01 crore, respectively.
The IPO has reserved 50% of its issue size for Qualified Institutional Buyers (QIBs), 35% for Retail Investors, and the remaining 15% for Non-Institutional Investors. Investors can bid for a minimum of 110 shares, with multiples thereof. The equity shares of Arkade Developers are expected to be listed on the BSE and NSE on September 24, and Unistone Capital is the sole book-running lead manager for the issue.