Arkade Developers Limited is coming up with an IPO with a fresh issue of 3.2 crore shares worth INR 410 crores. The company aims to fund ongoing project development costs and acquire land for future real estate ventures.
Arkade Developers IPO – Important Dates
| Arkade Developers Limited IPO Date | September 16, 2024 to September 19, 2024 |
| Arkade Developers Limited IPO Listing Date | September 24, 2024 |
| Arkade Developers Limited IPO Price | INR 121-128 per share |
| Arkade Developers Limited IPO Lot Size | 110 Shares |
| Arkade Developers Limited IPO Total Issue Size | INR 410 crores |
| Arkade Developers Limited IPO Basis of Allotment | September 20, 2024 |
| Arkade Developers Limited IPO Initiation of Refunds | September 23, 2024 |
| Arkade Developers Limited IPO Credit of Shares to Demat | September 23, 2024 |
| Arkade Developers Limited IPO Issue Type | Book Built Issue IPO |
| Arkade Developers Limited IPO Listing At | BSE NSE |
Read more Arkade Developers IPO GMP
Arkade Developers Limited IPO – Company Profile
Arkade Developers Limited focuses on premium residential development and redevelopment in Mumbai. Since 2003, they’ve completed 11 redevelopment projects and developed 2.20 million square feet, with a proven track record of timely completion.
Their strong brand recognition in MMR, Maharashtra, is driven by a customer-centric approach and a focus on high-end, sustainable residential projects with lifestyle amenities. Current projects range from ₹9.44 million to ₹62.53 million per unit.
With a portfolio now featuring gated communities, the company has completed 28 projects over 20 years, totaling 4.5 million square feet. They have served 4,000+ customers, financed mainly through promoter equity and internal accruals, with a proven track record of timely project delivery.
Arkade Developers Ltd IPO Fundamental Analysis
Arkade Developers Limited’s financial analysis reveals a mixed performance. Revenue trends show significant growth, with increased equity and reduced debt reliance. Profitability and EPS have risen notably, while RoNW and inventory turnover ratios reflect improved efficiency and returns.
- Revenue Trend: The revenue increased from ₹2,289.34 millions in March 2022 to ₹2,201.52 millions in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 6,347.36 millions.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹508.44 millions in March 2022 to ₹1,228.08 millions by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹3.32 in March 2022 to ₹8.08 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 40.90% to 46.90%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover Ratio, which might suggest stronger sales or efficient inventory management.
Arkade Developers IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in millions) | 2,289.34 | 2,201.52 | 6,347.36 |
| Equity (₹ in millions) | 1,492.97 | 2,003.69 | 3,236.34 |
| Expenses (₹ in millions) | 1,788.89 | 1,614.14 | 4,715.61 |
| Profit and Loss After Tax (₹ in millions) | 508.44 | 507.66 | 1,228.08 |
| Diluted EPS only (₹) | 3.32 | 3.34 | 8.08 |
| Return on Net Worth (%) | 40.90 | 29.02 | 46.90 |
| NAV per Equity Share (₹) | 9.84 | 13.18 | 21.28 |
| Total Assets (in millions) | 3,699.67 | 5,554.09 | 5,750.05 |
| Total Liabilities (in millions) | 2,206.7 | 3,550.4 | 2,513.71 |
| Debt Equity Ratio | 211.95 | 72.63 | (71.14) |
| Current Ratio (in times) | 20.30 | 20.00 | 27.60 |
| Inventory Turnover Ratio | 95.39 | (47.72) | 161.11 |
Arkade Developers Limited IPO Peer Comparison
Arkade Developers focuses on profitability with strong EPS and RoNW. Keystone Realtors offers moderate performance. Godrej Properties leads in revenue, Macrotech Developers excels in scale, and Suraj Estate balances growth and profitability with impressive RoNW and EPS.
| Company | Types of financial | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| Arkade Developers Limited | Consolidated | 6,357.12 | 10 | – | 8.08 | 8.08 | 46.90 | 21.28 |
| Keystone Realtors Limited | Consolidated | 22,756.30 | 10 | 74.85 | 9.85 | 9.82 | 6.40 | 157.81 |
| Godrej Properties Limited | Consolidated | 43,342.20 | 5 | 111.53 | 26.09 | 26.08 | 7.76 | 359.40 |
| Macrotech Developers Limited | Consolidated | 1,04,695 | 10 | 78.46 | 16.03 | 15.99 | 10.32 | 180.80 |
| Suraj Estate Developers Limited | Consolidated | 4,157.04 | 5 | 40.92 | 19.39 | 19.39 | 22.97 | 148.30 |
Arkade Developers Ltd IPO Objective
The main objective of Arkade Developers Limited is to fund ongoing project development expenses and acquire land for future real estate projects, supporting their growth and expansion in the Mumbai real estate market.
- Funding a part of the costs to be incurred in the development of their ongoing and upcoming projects: Based on management estimates and vendor quotations, the company intends to utilize INR 250 crores from Net Proceeds for project costs, government approvals, and construction expenses for Arkade Nest, Deep Shikhar C Unit CHSL, and Prachi CHSL.
- Funding acquisition of yet-to-be-identified land for real estate projects and general corporate purposes: The company plans to allocate up to 35% of Gross Proceeds towards land acquisition in Mumbai’s competitive market and general corporate purposes, ensuring flexibility in funding future projects and business requirements.
Arkade Developers IPO Risks And Challenges
Arkade Developers Limited’s risk includes potential issues with identifying redevelopment projects and acquiring land, managing project delays and regulatory requirements, and the absence of long-term agreements for labour and materials, which may affect business operations and growth.
- The inability to identify redevelopment projects or acquire suitable land for new projects may negatively affect the company’s business operations and growth prospects, potentially hindering its ability to expand and execute future developments.
- The company focuses on premium residential real estate in Mumbai and is developing new and redevelopment projects. It has completed 28 projects, is managing delays and regulatory risks, and faces land acquisition and tenant resettlement challenges.
- The company lacks long-term agreements for labour and key construction materials, making it vulnerable to price increases, shortages, or supply disruptions. This could potentially lead to time and cost overruns that could affect business prospects.
Arkade Developers Ltd IPO – Industry & Market Potential
The sub-INR 35 lakh segment dominates the housing finance sector, representing 39% of the market by value and 78% by volume. With rising prices and aspirational demand, the industry size could double to INR 38 lakh crore by FY25.
The MMR housing market’s new residential supply and absorption rates are projected to rise consistently until 2026. Despite new launches potentially outpacing sales, prices are expected to increase due to better infrastructure and higher demand.
India’s residential real estate is thriving, with new launches surging from 127,959 units in 2020 to 4,45,770 in 2023. Unsold inventory fell to 5,80,894 units. Future growth is expected to continue positively through 2026.
Arkade Developers Limited IPO – Type of Offer
Arkade Developers Limited is coming up with an IPO with a fresh issue of 3.2 crore shares worth INR 410 crores. The company aims to fund ongoing project development costs and acquire land for future real estate ventures.
Arkade Developers IPO Offer Size
The offer size of Arkade Developers Limited is INR 410 crores, consisting of a fresh issue of 3.2 crore shares. The company seeks funds for ongoing project development costs and to acquire land for future real estate ventures.
Arkade Developers Limited IPO Allotment Structure
Arkade Developers Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for Arkade Developers IPO?
To apply for the Arkade Developers Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Arkade Developers Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Arkade Developers Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more about Arkade Developers IPO Day 1 Subscription
How do you check Arkade Developers IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Arkade Developers Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Arkade Developers Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Arkade Developers Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Arkade Developers Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Read more about Arkade Developers IPO Day 2 Subscription
Arkade Developers Ltd IPO Offer Registrar
The registrar for the Arkade Developers IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S6 -2, 6th Floor,
Pinnacle Business Park, Next to Ahura Centre,
Mahakali Caves Road, Andheri-East,
Mumbai – 400093, Maharashtra, India
Tel: +91-22-62638200
E-mail: [email protected]
Website: www.bigshareonline.com
Arkade Developers IPO – FAQs
1. What is the allotment date of the Arkade Developers IPO?
The allotment date of the Arkade Developers IPO is September 20, 2024.
2. What is the price band of the Arkade Developers IPO?
The price band of the issue is INR 121-128 per share.
3. What is the size of the Arkade Developers IPO?
The offer size of Arkade Developers Limited is INR 410 crores, consisting of a fresh issue of 3.2 crore shares. The company seeks funds for ongoing project development costs and to acquire land for future real estate ventures.
4. What is the listing date of the Arkade Developers IPO?
The listing date of Arkade Developers IPO is September 24, 2024.
