Mon Sep 16 08:00:19 UTC 2024: ## Arkade Developers IPO Opens with Moderate Demand

**Mumbai, India:** Arkade Developers Ltd., a Mumbai-based real estate firm, opened its initial public offering (IPO) on Monday, seeking to raise Rs 410 crore. The IPO, priced between Rs 121 and Rs 128 per share, saw a tepid response during the morning hours, garnering subscriptions for only 0.22 times the total shares on offer.

The IPO has been met with some optimism from analysts. Choice Broking, in its IPO note, highlighted Arkade Developers’ focus on premium residential properties in Mumbai, its track record of successful projects, and its strong financial position. SBI Securities also issued a “buy” recommendation, praising the company’s market share, execution capabilities, and growth potential.

**Grey Market Premium:** Despite the initial lukewarm response, market observers are positive about the listing prospects. The grey market premium (GMP) currently stands at Rs 80, suggesting a potential listing gain of 62.5 percent. This indicates investor confidence in the company’s long-term prospects.

**Anchor Investment:** Arkade Developers has already secured Rs 122.40 crore from anchor investors, including BNP Paribas Financial Markets, Societe Generale, and Saint Capital Fund.

**IPO Timeline:** The IPO will remain open for subscription until September 19. Share allotment is expected on September 20, with listing on both the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) on September 24.

**Investment Highlights:** Arkade Developers’ IPO is entirely a fresh issue, with proceeds earmarked for development of current and upcoming projects, acquisition of future real estate projects, and general corporate purposes.

Investors can bid for a minimum of 110 shares and in multiples thereof. The IPO is divided with 50% reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.

**Company Profile:** Arkade Developers is a fast-growing real estate company with a strong presence in the Mumbai Metropolitan Region (MMR). The company has a successful track record of developing premium residential properties, with a total of 1.80 million square feet developed as of July 31, 2023.

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