Tue Sep 17 05:53:56 UTC 2024: ## Arkade Developers IPO Over-Subscribed on Day 1, Investors Bullish on Future Growth

**MUMBAI, INDIA -** Arkade Developers, a Mumbai-based real estate developer, witnessed strong investor interest in its initial public offering (IPO) on Monday, September 16. The ₹410 crore IPO was oversubscribed by more than six times on its first day, with a grey market premium (GMP) reaching ₹86, indicating investor confidence in the company’s future prospects.

The company had already raised ₹122.40 crore from anchor investors ahead of the IPO, at an allocation price of ₹128 per share. The IPO is priced at a price band of ₹121 to ₹128 per share, and aims to raise funds for ongoing projects, land acquisition, and general corporate purposes.

Experts see the IPO as a compelling investment opportunity, citing the company’s robust financial performance and strategic focus on redevelopment projects in Mumbai. Arkade Developers has demonstrated impressive growth in revenue and profit after tax (PAT) in recent years, and its return on capital employed (RoCE) has also seen a significant increase, reflecting efficient capital utilization.

The company is also working towards becoming debt-free, making it more attractive to investors. Arkade Developers is further expanding its operations into the eastern region of the Mumbai Metropolitan Region (MMR), with plans for both commercial and residential developments.

Analysts are positive about the company’s valuation, which is considered attractive compared to its peers. The IPO is priced at a P/E ratio of 15.8 times on the upper price band based on FY24 earnings.

Arkade Developers’ expertise in timely project execution and navigating complex redevelopment processes, combined with the government’s focus on infrastructure development and rising housing demand, position the company for future success.

The IPO will conclude on Thursday, September 19, and the allotment of shares is expected on Friday, September 20. The company’s stock is anticipated to list on the stock market on Tuesday, September 24.

**Disclaimer:** This article is for informational purposes only and should not be construed as investment advice. Investors should always consult with a qualified professional before making any investment decisions.

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