Arkade Developers Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹128
Per ShareLot Size
110 Shares
Minimum Investment
₹14,080
Issue Size
₹410 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Arkade Developers Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
80.17%
Issue Type
Book Building
ISIN
INE0QRL01017
About the Company
Arkade Developers Limited is a rapidly growing real estate development Company with a significant presence in Mumbai, Maharashtra. The Company is engaged in the development of new projects and redevelopment of existing premises, and between 2017 and Q1 2024, it has launched 1,220 residential units and sold 1,045 residential units in different markets in the MMR. The Company has successfully completed redevelopment of 10 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai (through a partnership firm in which it holds the majority stake) with a combined constructed area of 1,000,000 square feet (approx.).
Industry Overview
Mumbai is one of the biggest and most expensive real estate markets in India. It has various micro-markets along with Mumbai City, suburbs, extended suburbs and neighbouring areas such as Thane and Navi Mumbai. Between 2017 and 2019, the housing market in MMR witnessed a gradual growth in both supply and absorption of housing units, with absorption numbers surpassing the new residential supply. During this period, MMR's housing supply and absorption recorded respective increases of 45% and 42%.
Company History
Arkade Developers Limited was originally incorporated as `Arkade Developers Private Limited', at Mumbai as a private limited company under the Companies Act, 1956 and received a certificate of incorporation issued by the RoC, on May 13, 1986. Thereafter, the Company was converted into a public limited company, pursuant to a special resolution passed by its Shareholders on June 5, 2023, and the name of the Company was changed to its present name pursuant to a fresh certificate of incorporation issued by the RoC on July 7, 2023.
Products & Services
- The Company is a rapidly growing real estate development Company with a significant presence in Mumbai, Maharashtra.
Growth Strategy
- Continue to expand in the eastern region of MMR, Maharashtra.
- Moving up the value chain to premium / luxury residential premises.
- Continue to focus on its blended business model.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 32,037,601 equity shares of face value of Rs. 10 each (equity shares) of Arkade Developers Limited (company) for cash at a price of Rs. 128 per equity share (including a share premium of Rs. 118 per equity share) (issue price) aggregating up to Rs. 410.00 crores (issue) the issue shall constitute 17.26% of the post-issue paid-up equity share capital of the company. The company has, in consultation with the BRLM, undertaken a pre-ipo placement of 1,626,016 equity shares at an issue price of Rs. 123 per equity share (including a premium of Rs. 113 per equity share) aggregating Rs. 20.00 crores (pre-ipo placement). The size of the fresh issue of Rs. 430.00 crores has been reduced by Rs. 20.00 crores pursuant to the pre-ipo placement and the revised size of the fresh issue is up to Rs. 410.00 crores. The issue includes a reservation of 162,601 equity shares aggregating Rs. 2.00 crores (constitutes 0.09% of the post-issue equity share capital), for subscription by eligible employees (employee reservation portion). the company, in consultation with the BRLM, offer a discount of 3.91% of the issue price (equivalent of Rs. 5.00 per equity share) to the eligible employees bidding in the employee reservation portion (employee discount), subject to necessary approvals as may be required. The issue less the employee reservation portion is hereinafter referred to as the net issue. The issue and the net issue constitutes 17.26% and 17.17% of the post-issue paid-up equity share capital, respectively. The Offer Price is Rs. 128 per equity share of face value of Rs. 10 each. The offer Price is 12.80 times of the face value of the equity shares. Bid cane be made for a minimum of 110 equity shares and in multiples of 110 equity shares thereafter. A discount of Rs. 5 per equity share is being offered to eligible employees bidding in the employee reservation portion.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Strategic location of projects in micro markets of MMR, Maharashtra with entry barriers.
- The Company is a leading player in select micro markets of, and an established developer in, the MMR, Maharashtra.
- Experienced Promoter and strong and technically proficient management team.
- Strong in-house resources.
- Timely completion of projects.
- The company may not be able to successfully identify redevelopment projects or identify and acquire suitable land for its proposed new projects which may have an adverse impact on the business and the growth of the Company.
- Inability to complete the company projects by their expected completion dates or at all could have an adverse effect its business, results of operations and financial conditions.
- The company is subject to penalty clauses under the agreements entered into with its customers for any delay in the completion of the company projects.
- The company does not enter into long term agreements for supply of labour and key materials for construction of its projects. Any significant increase in the prices, or shortage of, or delay or disruption in supply of labour or key materials for the company construction may result in time or cost overruns and may impact of the business prospects.
- The company relies on third party contractors whom its do not control to construct of the projects. Any delay or failure on the part of such contractors to adhere to their obligations could adversely affect the company financial condition and its business.