Mumbai-based Arkade Developers recently wrapped up its Initial Public Offering (IPO), which was open for subscription from September 16 to September 19, 2024. Priced in the range of ₹121-128 per share with a minimum lot size of 110 shares, this IPO gained significant attention from various investor categories. Let’s dive into the important updates about this offering, including allotment status, grey market premium (GMP), and the expected listing date.
IPO Allotment and Subscription Details
The Arkade Developers IPO was met with tremendous interest, with an overall subscription of 106.83 times. Institutional investors led the charge, with Qualified Institutional Buyers (QIBs) subscribing 163.16 times and Non-Institutional Investors (NIIs) subscribing 163.02 times. Retail investors also showed strong participation, with their portion being subscribed 51.39 times, while the employee quota was oversubscribed 50.49 times.
The allotment of shares is expected to be finalized by Friday, September 20, 2024. Investors will receive notifications regarding the status of their applications and any funds debited or mandates revoked by the weekend or latest by Monday, September 23. For those who do not receive an allotment, refunds will be processed shortly after, while successful bidders will see shares credited to their accounts before the listing date.
Grey Market Premium (GMP) Updates
Arkade Developers’ shares have been trading actively in the grey market, though the premium has seen some fluctuations. Initially, the IPO commanded a premium of ₹85 per share. However, amid broader market volatility, the latest GMP has dipped to ₹60 per share, indicating an expected 48% listing gain for investors. Despite the correction, this is still a healthy premium, reflecting optimism for short-term gains at the time of listing.
Listing Date and Market Anticipation
The company’s shares are expected to debut on the stock exchanges BSE and NSE on Tuesday, September 24, 2024. Market experts anticipate a strong opening given the robust demand during the bidding process, especially from institutional investors.
About Arkade Developers
Arkade Developers is a prominent player in Mumbai’s real estate market, known for its focus on premium residential projects. The company operates in two main segments: new construction of residential properties on acquired land and the redevelopment of existing buildings. With a reputation for timely project completion and a leadership role in the Mumbai Metropolitan Region (MMR), Arkade Developers has built a solid track record in delivering high-quality projects.
Analyst Opinions and Risk Factors
Many brokerage firms have given a positive outlook on Arkade Developers for long-term investors, citing its strong presence in the Mumbai market, experienced management, and timely delivery of projects. However, analysts have also noted some risks, including ongoing legal issues, rising raw material costs, and dependence on third-party contractors. These concerns could impact the company’s margins and overall growth in the long run.
With strong demand from investors and solid fundamentals, Arkade Developers is poised to make a significant debut on the stock exchanges. Investors are eagerly awaiting the allotment results and are hopeful for a promising listing day on September 24, 2024.
Stay tuned for further developments as Arkade Developers prepares to enter the stock market.
We highlight the IPO journey of Arkade Developers, covering essential details like allotment status, GMP trends, and market insights. For those keeping an eye on real estate stocks, this listing is one to watch closely.