Synopsis: Arkade Developers made a strong debut, listing at Rs175.90 per share, a 37% premium over the issue price. Despite slight underperformance compared to market expectations, the IPO saw strong subscription, raising Rs410 crore to fund future real estate projects.
Arkade Developers Ltd made an impressive stock market debut on Monday, with its shares listed at Rs175.90 per share on the BSE, a premium of 37.42% over the issue price of Rs128. On the NSE, the stock opened slightly lower at Rs175 per share, still delivering a significant 36.72% premium.
Despite the positive listing, the stock's performance fell slightly below expectations, as grey market trends had indicated a potential 50% listing gain with a grey market premium (GMP) of Rs64 per share.
The company's IPO price band was set between Rs121 and Rs128 per share, and at the upper end, Arkade Developers raised Rs410 crore from the book-built issue. The IPO comprised an entirely fresh issue of 3.2 crore shares.
The IPO, which was open for subscription from September 16 to September 19, was highly oversubscribed, with total bookings at 106.83 times. In specific categories, the retail investors subscribed 50.49 times, while the Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) subscribed 163.16 times and 163.02 times, respectively.
Arkade Developers is a prominent real estate company focused on luxury residential projects in Mumbai, Maharashtra. The funds raised from the IPO will be used to finance ongoing projects, acquire land for future real estate developments, and for general corporate purposes.
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