Tue Sep 17 09:01:39 UTC 2024: ## Arkade Developers IPO Oversubscribed, Attracts Strong Investor Interest
**Mumbai, September 19, 2023:** Arkade Developers, a leading real estate developer in Mumbai, witnessed an overwhelming response to its Initial Public Offering (IPO), which opened for bidding on September 16. The issue was subscribed a whopping 9.32 times, surpassing the offered shares significantly.
The first day saw a 6.3 times subscription, with the retail segment alone booking 8.75 times the allotted shares. The bidding window will close on September 19.
Despite being a capital-intensive sector, Arkade Developers has minimal long-term borrowings, relying heavily on internal accruals and promoter equity. The company aims to raise Rs 410 crore through the IPO by selling 3.2 crore shares, with the price band set between Rs 121 and Rs 128 per share.
The IPO has generated significant buzz in the grey market, where shares are traded unofficially before listing. Arkade Developers’ stocks were reportedly commanding a premium of 67% in this market.
The allotment of shares is expected to be finalized on September 20, with the status available on the registrar’s website. Refunds will be processed on September 23, and the company’s shares are anticipated to be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on September 24.
Analysts at Anand Rathi Research believe the IPO is “fairly priced,” citing the company’s business growth visibility and stable financial performance. They recommend a “Subscribe for Long Term” approach to investors.
Arkade Developers’ focus on mid-tier residential projects in the suburban Mumbai MMR region, coupled with its strong financial standing, has drawn considerable attention from investors. The successful IPO signals confidence in the company’s future prospects and the continued growth of the Mumbai real estate market.
Meanwhile, the Indian government is finalizing a trade agreement with Peru, which is the world’s second-largest copper producer. This agreement aims to address India’s increasing demand for copper and further strengthens the existing economic relationship between the two nations. Peru’s strategic investments in mining and infrastructure, including the upcoming Chancay mega port, are expected to further enhance the collaboration.
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