Arkade Developers IPO 2024: A Promising Opportunity in the Indian Real Estate Market
Arkade Developers Limited, a prominent real estate development company in India, is coming up with an IPO size of Rs. 410 crore. The company has a strong track record of project completion and a strategic focus on the Mumbai Metropolitan Region (MMR).
Arkade Developers IpoIndian Real Estate MarketMmrMumbai Metropolitan RegionReal Estate IndustryReal Estate MaharashtraSep 13, 2024
Arkade Developers Limited was established in 1986, and its headquarters are in Mumbai, Maharashtra. It is one of the prominent real estate development companies in India. Arkade Developers Limited’s primary focus is on developing new projects and redeveloping residential projects across the Mumbai Metropolitan Region (MMR).
The company has developed a total of more than 5 million square feet of property and more than 2.5 million square feet under development. It has delivered 29 projects, 5 ongoing projects, and 2 upcoming projects. Arkade Developers Limited has launched 1,040 residential units and sold 792 residential units in different markets in the MMR.
The real estate industry in India is witnessing significant growth, driven by urbanization and rising disposable incomes. It is among the most well-known industries worldwide. The real estate sector is projected to reach a market size of US $1 trillion by 2030, up from US $200 billion in 2021 and contributing 13% to the nation’s GDP by 2025.
Coming into the financial analysis of Arkade Developers Limited, the company’s revenue has slightly decreased from ₹228.93 crores in FY22 to ₹220.15 crores in FY23. In FY24, it has increased by 188.32% to ₹634.74 crores as compared to the previous year.
Arkade Developers Limited’s net profit has slightly decreased from ₹50.84 crore in FY22 to ₹50.77 crore in FY23. The company has improved its net profit in FY24 and reached ₹122.81 crore, which has grown by 141.89%.
The company’s peer competitors are Keystone Realtors Limited, Godrej Properties Limited, Macrotech Developers Limited, and Suraj Estate Developers Limited. Arkade Developers Limited has less revenue compared to the other peer competitors listed in the stock market, but more than Suraj Estate Developers Limited.
The company has several strengths, including its strategic location in MMR, proven track record of project completion, integrated business model, customer-centric approach, and financial growth.
However, the company also faces some challenges, including dependence on key management, challenges in redevelopment projects, third-party contractor dependency, regulatory and compliance risks, and limited market reach beyond MMR.
The shares of Arkade Developers Limited’s price in the grey market were trading at a 37.50% premium as of September 11th, 2024. The shares in Grey Market traded at Rs. 176.
The company’s IPO is expected to be listed on the exchange on 24th September 2024. The objective of the issue is to fund the development of ongoing projects and upcoming projects, and for general corporate purposes.
In conclusion, Arkade Developers Limited shows promise in the growing Indian real estate market. The company has a strong track record and strategic focus on Mumbai. Its financial growth and customer-centric approach are noteworthy strengths. However, it faces challenges like regulatory risks and limited market reach. Investors should consider the company’s potential against industry risks.
Frequently Asked Questions
What is the IPO size of Arkade Developers Limited?
The IPO size of Arkade Developers Limited is Rs. 410 crore.
When will the IPO be listed on the exchange?
The IPO will be listed on the exchange on 24th September 2024.
What is the primary focus of Arkade Developers Limited?
The primary focus of Arkade Developers Limited is on developing new projects and redeveloping residential projects across the Mumbai Metropolitan Region (MMR).
What is the company’s revenue growth rate?
The company’s revenue growth rate has had a compound annual growth rate (CAGR) of 80.49% for the last three years.
What are the company’s strengths?
The company’s strengths include its strategic location in MMR, proven track record of project completion, integrated business model, customer-centric approach, and financial growth.
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