Arkade Developers Files IPO Papers With SEBI

Arkade Developers Ltd., a real estate developer in Mumbai, has filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India to raise funds through an initial public offering.

The company's public offer comprises a fresh issue of Rs 430 crore.

It proposes to utilise the net proceeds towards the development of their ongoing projects—such as Arkade Nest—upcoming projects, funding the acquisition of future real estate projects, and general corporate purposes.

As of July 31, the real estate developer said it had developed 1.80 million square feet of residential property, including through partnership entities in which Arkade holds a majority stake.

Arkade Developers' revenue in fiscal 2023 stood at Rs 224 crore as compared with Rs 237 crore in FY22 and Rs 113 crore in FY21. Its revenue from operations has grown at a compound annual growth rate of 26.69% between fiscal 2021 and fiscal 2023, according to the draft papers.

Redevelopment projects constituted 41.48% of the total share of revenue in fiscal 2023, while new projects constituted the remaining 58.52%.

Amit Mangilal Jain is the promoter, chairman, and managing director of the company, with 82.99% equity.

They are engaged in the development of new projects and the redevelopment of existing premises. Between 2017 and Q1 2023, it launched 1,040 residential units and sold 792 residential units in different markets in the Mumbai Metropolitan Region.

Unistone Capital is the sole bookrunner and lead manager on the issue. The equity shares of the company will be listed on the BSE and NSE stock exchanges.