Arkade Developers Raises Rs 122 Crore from Anchor Investors Ahead of IPO
Mumbai-based real estate developer raises funds from 9 anchor investors, including BNP Paribas and Societe Generale, ahead of its initial public offer.
Arkade DevelopersIpoReal EstateMumbaiBnp ParibasSociete GeneraleReal Estate MumbaiSep 14, 2024
The company has allotted over 95.62 lakh equity shares to anchor investors at a price of Rs 128 per share. BNP Paribas Financial Markets ODI was the largest anchor investor, acquiring 20.43% of the allocated shares.
Arkade Developers is a leading real estate development company with a significant presence in Mumbai. Its operations are concentrated on the development of premium aspirational lifestyle residential premises in the region.
As of July 31, 2023, the company has developed 1.80 million square feet of residential property, including through partnership entities in which Arkade holds the majority stake. They are also engaged in the development of new projects and redevelopment of existing premises.
The company's initial projects were stand-alone residential buildings, but their current portfolio of ongoing projects includes gated communities such as Arkade Nest, Arkade Crown, and Arkade Aspire.
The IPO, which is completely a fresh equity sale of Rs 410 crore, will close on September 18. The price band has been fixed at Rs 121-128 per equity share. About 50% of the issue is reserved for qualified institutional buyers, 35% for retail investors, and the rest 15% for non-institutional investors.
The company proposes to utilize the net proceeds towards development of their ongoing projects, and their upcoming projects, and funding acquisition of future real estate projects and general corporate purposes.
Arkade Developers' revenue in FY24 increased 189% year-on-year to Rs 635 crore, while net profit also more than doubled to Rs 123 crore in the same period.
Unistone Capital is the sole Book Running Lead Manager (BRLM) to the issue. The equity shares of the company will be listed on BSE and NSE.
Frequently Asked Questions
What is the size of the Arkade Developers IPO?
The IPO is a fresh equity sale of Rs 410 crore.
What is the price band for the IPO?
The price band has been fixed at Rs 121-128 per equity share.
Who is the largest anchor investor in the IPO?
BNP Paribas Financial Markets ODI is the largest anchor investor, acquiring 20.43% of the allocated shares.
What is the purpose of the IPO proceeds?
The company proposes to utilize the net proceeds towards development of their ongoing projects, and their upcoming projects, and funding acquisition of future real estate projects and general corporate purposes.
Where will the equity shares of the company be listed?
The equity shares of the company will be listed on BSE and NSE.
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