Mumbai-based realty player Arkade Developers Ltd. plans to raise up to Rs 410 crore through an initial public offering. The IPO, set to open on Sept. 16, consists completely of a fresh issue of 32,031,250 shares aggregating Rs 410 crore.
The company has set a price band of Rs 121-128 per share with a face value of Rs 10 each for the issue, which closes on Sept. 19. At the upper price band, the market cap of Arkade stands at over Rs 2,376 crore, according to NDTV Profit's calculations.
The minimum lot size for retail investors is 110 shares, requiring an investment of at least Rs 14,080.
Issue Details
Issue opens: Sept. 16
Issue closes: Sept. 19
Issue price: Rs 121-128 per share.
Total issue size: Rs 410 crore.
Fresh Issue: Rs 410 crore.
Bid lot: 110 shares.
Listing: BSE and NSE.
Use Of Proceeds
To finance the costs to be incurred in the development of ongoing Projects (viz. Arkade Nest, Prachi CHSL and C-Unit)
Funding acquisition of yet-to-be identified land for real estate projects and general corporate purposes
Business
Arkade Developers Ltd. (Arkade) is a fast-growing real estate development company with a significant presence in Mumbai, Maharashtra.
The company's operations are strategically located in the western suburbs of MMR (Mumbai Metropolitan Region), Maharashtra, and it has also developed high-end luxury projects in south Mumbai and eastern suburbs.
In the last two decades, Arkade Group has completed 28 projects, aggregating more than 4.5 million square feet of development. Out of the 28 completed projects, 17 were new projects and 11 were redevelopment projects.
Financials
Other Key Operational Highlights
Key Risks
The company may not be able to successfully identify redevelopment projects for proposed new projects, which may have an adverse impact on its business.
Inability to complete the projects by their expected completion dates or at all could have an adverse effect on the business operations.
The company does not enter into long term agreements for supply of labour and key materials for construction of its projects. Any significant increase in the prices, or shortage of, or delay or disruption in supply of labour or key materials for its construction may result in time or cost overruns.
The company relies on third party contractors, whom they do not control, to construct its projects. Any delay or failure on the part of such contractors to adhere to their obligations could adversely affect its operations.
Watch The IPO Adda Here
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