New Delhi: Arkade Developers Ltd, a real estate company, has secured Rs 122.40 crore from anchor investors in preparation for its upcoming initial public offering. On Tuesday, the company set a price range of Rs 121-128 per share for its Rs 410-crore IPO. The public subscription for the initial share sale will start on September 16 and end on September 19.
As per a regulatory filing, the company has allotted 95,62,500 shares to anchor investors at a price of Rs 128 per share, totaling Rs 122.40 crore. This group of investors consists of BNP Paribas Financial Markets -- ODI, Societe Generale-ODI, and Saint Capital Fund. The IPO consists solely of new equity shares valued at Rs 410 crore, without any offer-for-sale (OFS) element. The funds raised from the issuance will be utilized for advancing the company's current and future projects, financing the purchase of upcoming real estate ventures, and for general business needs.
Arkade Developers is a rapidly expanding real estate development firm that has a major presence in Mumbai. By July 31, 2023, Arkade has constructed 1.80 million square feet of residential real estate, with the majority stake held through partnership entities. From 2017 to the first quarter of 2023, the company introduced 1,040 residential units and successfully sold 792 residential units in various markets within the Mumbai Metropolitan Region (MMR) in Maharashtra. In the fiscal years 2023, 2022, and 2021, Arkade Developers earned Rs 224.01 crore, Rs 237.18 crore, and Rs 113.18 crore, respectively.
The company announced that 50 percent of the allocation was set aside for qualified institutional buyers, while 35 percent was designated for retail investors, and the remaining 15 percent was allotted to non-institutional investors. Furthermore, investors have the option to bid on at least 110 shares, with the possibility of bidding on additional shares in multiples of 110.
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