On Tuesday, real estate company Arkade Developers made an impressive entry into the stock market.
The company’s shares were listed on the BSE at ₹175.90, which is 37.42% higher than its issue price of ₹128 per share.
On the NSE, the shares were listed at ₹175, giving a listing gain of 36.72%.
Despite offering good returns to investors, the listing gain was lower than expected based on the grey market premium (GMP).
The GMP suggested a listing gain of ₹64 per share, leading investors to expect a return of over 50%. However, the actual listing gain on the day was around 37%.
Strong Response from Investors
Arkade Developers’ IPO saw significant interest from investors. The IPO was subscribed a total of 113.49 times.
Among the investors, qualified institutional buyers (QIBs) subscribed 172.60 times, non-institutional investors (NIIs) subscribed 172.22 times, and retail investors subscribed 53.78 times of their reserved shares.
Details of the IPO
The IPO was open for investment between September 16 and September 19, 2024. The price range for the shares was set between ₹121 and ₹128.
Arkade Developers aimed to raise ₹410 crore by issuing 32,031,250 fresh equity shares. The shares were allotted to investors on September 20,
and transferred to their demat accounts on September 23. In the IPO, 30% of the shares were reserved for anchor investors, 20% for QIBs, 15% for NIIs, and 35% for retail investors.
Financial Performance of Arkade Developers
Arkade Developers, based in Mumbai, has been in the real estate business for 20 years, completing 28 projects during that time.
Between 2017 and March 2024, the company launched 1,120 residential units, of which 1,045 have been sold.
The company made a profit of ₹50.84 crore in FY 2022, ₹50.77 crore in FY 2023, and saw a significant jump to ₹122.81 crore in FY 2024.
