Press Trust of India
Realty firm Arkade developers has raised Rs. 122.40 crore from anchor investors ahead of its initial public offering. On Tuesday, the company had fixed a price band of Rs. 121 -128 per share for its Rs. 410 crore initial public offering.
The initial share sale will open for public subscription on September 16 and conclude on September 19.
According to a regulatory filling, the company has issued 95,62,500 shares to anchor investors at Rs. 128 per share, aggregating to Rs. 122.40 crore.
These investors include BNP Paribas Financial Markets – ODI, Societe Generale – ODI and Saint Capital Fund.
The IPO is entirely a fresh issue of equity shares worth Rs.410 crore with no offer-for-sale (OFS) component.
Proceeds from the issue will be used for development of the company’s ongoing as well as upcoming projects, funding acquisitions of future real estate projects and general corporate purposes.
Arkade developers is a fast growing real estate development company with a significant presence in Mumbai. As of July 31, 2023, it has developed 1.80 million square feet of residential property, including through partnership entities in which Arkade holds the majority stake.
Between 2017 and Q1 2023, the company launched 1,040 residential units and sold 792 residential units in different markets in the Mumbai Metropolitan Region (MMR) in Maharashtra.
Arkade developers revenue in fiscals 2023, 2022, and 2021 stood at Rs. 224.01 crore, Rs. 237.18 crore, and Rs. 113.18 crore respectively.
The company said that half of the issue size has been reserved for qualified institutional buyers, 35 percent for retail investors and the remaining 15 percent for non-institutional investors. Further, investors can bid for a minimum of 110 shares and in multiple thereof.
