Arkade Developers Ltd IPO: Review, Valuation, Date & GMP

Arkade Developers IPO-Complete Overview

Arkade Developers IPO a Mainboard IPO is a book-built issue of Rs.410 crore (3.2 crore Shares) by Arkade Developers Ltd. It is a Mumbai, Maharashtra-based real estate development company with a specialty in creating upscale, sophisticated lifestyle residential projects. The business of the company is split into two sections:

1. Development and building of residential structures on company-acquired property (new projects)

2. Renovation of already-existing structures (Redevelopment Projects)

The company is engaged in both the creation of new initiatives and the renovation of old structures. The company launched 1,220 residential apartments and sold 1,045 residential units in various marketplaces in MMR, Maharashtra, between 2017 and Q1 2024. The company has created 2.20 million square feet of residential units as of June 30, 2024. The company has finished redeveloping 10 projects in Mumbai's western suburbs and 1 project in the city's south-central region between CY 2003 and March 2024.

Over the past 20 years, the company has completed 28 projects, 11 of which were standalone projects. The remaining nine projects were joint development agreements with other third parties, with a total built-up area of over 4.5 million square meters awarded to over 4,000 customers. Two projects were completed through partnership firms in which the company held a majority stake.

This new IPO is to be launched on 16 September 2024, and the initial public offering of this upcoming IPO will end on 19 September 2024.

 

 

Arkade Developers IPO Overview

The Rs.410 crore Arkade Developers Limited IPO comprises an entirely fresh Issue of 3.2 crore Shares out of which 35% is allocated to retail investors, 50% to institutional investors, and 15% to non-institutional investors. 

The IPO date is from 16 September to September 19, 2024. The IPO listing is on Tuesday, September 24, 2024, and it will be listed on the BSE and NSE. Arkade Developers Limited IPO price is between Rs.121 to Rs.128 for each Share.

To open a demat account and apply for the IPO, Click Here.

 

Company Financial

The company’s revenue grew by 184% and PAT increased by 142% between FYs ended 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2024.

• The company’s total assets are Rs.575.01 crore.

• The company’s total revenue is Rs.635.71 crore.

• The company’s PAT is Rs.122.81 crore.

• The company’s net worth is Rs.323.4 crore.

• The EBITDA of the company is Rs.169.37 crore.

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

 

Project-wise Revenue Bifurcation

(Values in millions)

 

Region-wise Revenue Bifurcation

(Values in millions)

 

Detailed Video:

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Funding includes some of the expenditures that will be incurred for the ongoing projects (such as Arkade Nest, Prachi CHSL, and C-Unit) (Funding Development Expenses)

• Funding the purchase of property that hasn't yet been identified for real estate projects

• Corporate Purposes.

 

Peers of Arkade Developers Ltd.

 

Note: The basic EPS of the peers is for the financial year ending 31 March 2024.

The peers' P/E Ratio is computed based on the closing market price of the Share as of 30 August 2024.

 

Evaluation

Arkade Developers share price is between Rs.121 to Rs.128 for each Share.

Evaluation of P/E Ratio

Considering the period of FY 2024, with an EPS of Rs.8.08 from the last year, the resulting P/E ratio is 15.84x.

Considering the weighted EPS of Rs.5.71 for the last three years, the P/E ratio is 22.42x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 76.44x.

 

In simple words, the P/E ratio of Arkade Developers IPO (15.84x), compared with the industry’s average P/E of 76.44x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Projects are strategically placed in MMR, Maharashtra's micro markets

• In several micro-markets within the MMR, Maharashtra, we are a prominent developer and ranked in the top ten developers in terms of supply

• Skilled promoter and robust, technically adept management group

• Robust internal resources

• Project completion on schedule.

 

IPO’s Weaknesses 

• Its operations and the company's expansion may suffer if the company cannot locate and secure appropriate land for the planned new projects or effectively identify redevelopment projects.

• The company could suffer if it cannot finish its work by the deadlines it has set.

• The company is vulnerable to fines outlined in the contracts it signed with its clients for any delays it causes in finishing their projects.

• The company relies on outside contractors that it doesn't manage to build the projects. Any inability on the part of these contractors to fulfill their commitments could harm the company's finances.

• In the last FYs, its operating, financing, and investing activities resulted in negative cash flows.

 

Arkade Developers IPO GMP Today

Arkade Developers IPO GMP today is Rs.63 as of 13 September 2024.

Arkade Developers IPO Timetable (Tentative)

The Arcade Group IPO open date is from September 16 to September 19, 2024, with IPO allotment on September 20, 2024, refund initiation on September 23, 2024, and listing on September 24, 2024.

 

 

Arkade Developers IPO Details 

The IPO with a face value of Rs.10 per Share is set to start on September 16, 2024, close on September 19, 2024, and offers a total issue size of 32,031,250 Shares between Rs.121 to Rs.128 per Share with a Lot size of 110 Shares and will be listed at BSE and NSE.

Arkade Developers IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (110 Shares) amounting to Rs.14,080 and 14 Lots (1540 Shares) amounting to Rs.197,120 respectively, while for HNI investors, the minimum Lot is 15 (1,650 Shares) amounting to Rs.2,11,200.

Promoters and Management of Arkade Developers Ltd. 

• Mr. Amit Mangilal Jain

Arkade Developers IPO Lead Managers

• Unistone Capital Pvt Ltd.

Dividend Policy

The company has not paid any dividends in the last three fiscals.

 

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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