Arkade Developers IPO Allotment: How to Check Status Online & Latest GMP Updates

Arkade Developers IPO Allotment: The shares of the Arkade Developers IPO which were up for public subscription between September 16 and September 19, are to be closed this evening September 20. In case they are offered shares, a bank debit message will be sent to the investors.

They can also know the status of allotment through BSE, NSE websites and the website of the registrar Bigshare Services.

The Arka Developers Ltd, a real estate firm, got a bid of Rs 410 cr on the last day of bidding on Thursday September 19 and the IPO was oversubscribed 113%. 49 times subscription receiving bids for 2,53,23,06,150 as compared to 2,23,12,500 shares for subscription. Its price band was in the range of Rs 121 to Rs 128 for every share it sold.

The category for non institutional investors alone got a total of 172. 22 times subscription, while the portion for retail individual investors (RIIs) got subscribed 53. 78 times. As for the QIB category of professional bodies, the sum total of money received amounted to $ 172.60 times subscription.

Once the IPO allotment is finalised, the status can be checked by following these steps:Once the IPO allotment is finalised, the status can be checked by following these steps:

Go to the BSE official website using the URL https://www.bseindia.com/investors/appli_check.aspx

In case of ‘Issue Type’, please choose ‘Equity’.

For ‘Issue Name’ from the dropbox, choose ‘Arkade Developers Ltd’.

Please enter number of your application or the Permanent Account Number (PAN).

Then, tick the box that says ‘I am not a robot’ and then click on the ‘Search’ button.

You will see your share application status displayed on your screen.

You can also directly go to direct Bigshare Services Pvt Ltd’s portal https://ipo.bigshareonline.com/IPO_Status.html and to check the IPO allotment status of Arkade Developers.

IPO for this unit was open for subscription on September 16 and will close on September 19. The inter reuse of the shares of the Arkade Developers IPO will be perhaps concluded on September 20 in the evening while the company will be listed both in BSE as well as NSE on September 24.

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As per the market watchers, the grey market premium for the unlisted shares of Arkade Developers Ltd is Rs 60 more than its issue price. The current Rs 60 GMP or Grey Market Premium means that the grey market is anticipating a 46 percent gain. 88 per cent of the listing from the public issue. The GMP is variable and fluctuates depending on the market’s feelings and stands for ‘Get Me a Pretty’.

Almost all the brokerages have come up with a ‘subscription’ to the IPO.

Brokerage firm Choice in its IPO note said, “ADL is a real estate development company specialising in premium lifestyle residential properties in Mumbai, the commercial capital of Maharashtra, India. The company focuses on two key areas: new developments and redevelopment projects.

ADL’s operations are strategically based in the MMR, particularly in the western suburbs. Over the past two decades, ADL has successfully completed 28 projects. With a steady increase in the number of units sold, the company has shown strong growth in both revenue and profitability.”

Thus, at the upper end of the range ADL wants to be priced at an EV/Sales multiple of 3. The price of 2x is below the average of peers’ prices, 2y. traditionally ADL has focused only on the western part of MMR; however, in the recent past, the company has started venturing in to the eastern part of Mumbai.

Other factors that suggest ADL’s future business growth include; While debt remains almost negligible the consistent and on time delivery of projects also remains a major business strength of the company. “Thus, we recommend a “SUBSCRIBE” for this issue, – stated Choice.

SBI Securities in its note also given a buy call to the IPO. It said, “The company is valued at FY24 P/E multiple of 19.3x at the upper price band of Rs 128 based on post-issue capital. The issue appears to be attractively priced given the excellent execution track record, healthy market share in the identified micro-markets, strong balance sheet and the growth potential of the real estate industry in the MMR.”

“The funds raised through the IPO will be utilised for acquiring land parcels which will further boost the development pipeline. We recommend subscribing to the issue for both listing gains as well as long term investment horizon.”

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Gurgaon based reamed firm Arkade Developers Ltd was, in a significant capitalizing power, has launched Rs. 122. The company has raised Rs 40 crore from the anchor investors before listing the company in the stock market through initial public offering.

In a recent regulatory filing the company has allocated 95,62,500 shares to anchor investors at price of Rs 128 per equity share attracting investments of Rs 122. 40 crore. Some of these investors are BNP Paribas Financial Markets — ODI, Societe Generale-ODI and Saint Capital Fund.

The IPO is completely of fresh issue of equity share of Rs 410 crore without any OFS element.

The proceeds from the issue will be utilized for the development of the company’s current as well as new projects, funding for the acquisition of future Real Estate Projects and other corporate purposes.

It is an emerging business entity in the context of Mumbai real estate market and is basically involved in real estate developer business. As on 30th July 2023 it has successfully developed 1. Residential real estate – 80 million of area in the ownership of Arkade and through partnership companies in which Arkade has more than 50% interest.

Between 2017 and Q1 2023, godrej launched a thousand and forty residential units out of that they sold seven hundred and ninety-two residential units in different markets in MMR in Maharashtra.

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