Arkade Developers IPO Day 4: A Comprehensive Overview
As the subscription period for the initial public offering (IPO) of Arkade Developers draws to a close on Thursday, September 19, the excitement surrounding this ₹410 crore issue continues to build. Opening for subscription on Monday, September 16, the IPO has garnered significant interest from both retail and non-institutional investors (NIIs). Prior to the public offering, Arkade Developers successfully raised approximately ₹122.40 crore from anchor investors, setting a positive tone for the upcoming listing.
Arkade Developers IPO Subscription Status
The Arkade Developers IPO has demonstrated robust demand, being fully subscribed on its very first day. As of 7 PM on day 4, September 19, the issue had been subscribed a staggering 106.83 times overall. The breakdown of subscriptions reveals an enthusiastic response: the retail portion was booked 51.39 times, while the NII segment saw an impressive 163.02 times subscription. The Qualified Institutional Buyers (QIB) segment also showed strong interest, with bids received at 163.16 times the available shares.
This overwhelming response indicates a strong market sentiment towards Arkade Developers, reflecting investor confidence in the company’s growth potential and market positioning.
Arkade Developers IPO GMP Today
The grey market premium (GMP) for the Arkade Developers IPO stands at ₹60, according to investorgain.com. With the upper price band set at ₹128 per share, this suggests an estimated listing price of ₹188, which represents a substantial 46.88% premium over the issue price. The positive GMP signals a strong willingness among investors to acquire shares at a premium, further reinforcing the bullish outlook for the IPO.
Arkade Developers IPO Review
Market experts are largely optimistic about the Arkade Developers IPO, citing reasonable valuations and promising growth prospects. Brokerage firm Choice Broking has issued a ‘subscribe’ recommendation, highlighting that at the higher end of the price range, the company is seeking an EV/sales ratio of 3.2 times, which is competitive compared to industry peers. Historically focused on the western suburbs of the Mumbai Metropolitan Region (MMR), Arkade Developers has recently expanded into the eastern suburbs, enhancing its growth strategy. The firm’s near debt-free status and consistent track record of timely project delivery further position it for sustainable growth.
Similarly, Anand Rathi has also rated the IPO as a ‘subscribe’. They note that at the upper price band, Arkade Developers is targeting a price-to-earnings (PE) ratio of 19.3 times and a price-to-book value (P/BV) of 3.2, with a post-issue market capitalization of ₹23,760 million. This valuation appears fair, especially considering the company’s visibility in business growth and stable financial performance, making it well-positioned to capitalize on opportunities in Mumbai’s real estate sector.
Arkade Developers IPO Details
The Arkade Developers IPO aims to raise ₹410 crore through a fresh issue of 3.2 crore shares. The funds raised will be utilized for ongoing projects, land acquisitions for future real estate developments, and general corporate purposes. The price band for the IPO is set between ₹121 and ₹128 per share. The subscription period, which opened on September 16, concludes today, September 19. Share allotment is expected to be finalized on Friday, September 20, with the stock anticipated to list on Tuesday, September 24.
Conclusion
As the Arkade Developers IPO approaches its conclusion, the overwhelming subscription numbers and positive market sentiment suggest a promising debut for the company. Investors are advised to consider the insights from market analysts and brokerage firms before making investment decisions. With a solid growth strategy and favorable market conditions, Arkade Developers appears poised to make a significant impact in the real estate sector.
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