Shares of Arkade Developers had a strong start on September 24, debuting at Rs 176 on the BSE, which is a 37.5% premium over its issue price of Rs 128 per share.
However, this listing gain was below expectations, as the shares were predicted to list at a premium of nearly 50%.
In the grey market, which allows shares to trade unofficially before the actual listing, Arkade Developers shares were trading at higher levels before the public offering.
Strong Investor Response and Subscription
Arkade Developers’ Rs 410-crore public offer, which included a fresh issue and an offer for sale, saw massive interest from investors.
The issue was subscribed 106 times overall. Institutional buyers showed strong interest, subscribing 163.16 times, while non-institutional investors subscribed 162.75 times.
Retail investors also contributed significantly, with a subscription rate of 50.65 times.
Company’s Future Plans and Strong Market Position
Arkade Developers holds a strong position in prime locations across Mumbai with a portfolio of both new developments and redevelopment projects.
The company’s steady revenue growth and solid financial performance highlight its strong fundamentals.
The company intends to use the funds from the issue for ongoing projects like Arkade Nest, Prachi CHSL, and C-Unit, as well as to acquire land for future projects.
The remaining funds will be used for general corporate purposes. Prior to the public issue, Arkade Developers raised Rs 122.40 crore from anchor investors.
