Mon Sep 16 10:24:50 UTC 2024: ## Arkade Developers IPO Opens with Strong Subscription: Grey Market Premium Fuels High Expectations

**Mumbai, September 16, 2023:** Arkade Developers Ltd., a leading real estate developer in Mumbai, launched its ₹410 crore initial public offering (IPO) today, with strong early subscription figures and a robust grey market premium indicating high investor interest.

The IPO, which offers 32,031,250 equity shares with a face value of ₹10, was subscribed 4.26 times on the first day of the subscription period, according to BSE data. The retail portion was subscribed 6.37 times, while the non-institutional investor quota saw 4.68 times subscription. The grey market premium (GMP) currently stands at ₹80, suggesting investors are willing to pay a significant premium over the issue price.

Arkade Developers, known for its luxury residential projects in Mumbai’s western suburbs, has a strong track record of successful project delivery and consistent growth in revenue and profitability. The company boasts a near debt-free status and has strategically expanded its operations into the eastern suburbs.

Prior to the IPO, Arkade Developers raised ₹20 crore through a pre-IPO placement, further bolstering its financial position.

Analysts are optimistic about the IPO, highlighting Arkade Developers’ strong fundamentals, established position in the MMR market, and attractive valuation compared to its peers. Brokerage firms are recommending a “Subscribe” rating, with an expected post-issue P/E ratio of approximately 19x and a market capitalization of ₹2,376.14 crore.

The IPO is expected to close on Thursday, September 19, with Unistone Capital Pvt Ltd acting as the book running lead manager and Bigshare Services Pvt Ltd as the registrar. The initial listing price is estimated at ₹208 per share, indicating a potential 62.5% gain over the IPO price.

**Disclaimer:** The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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