Shares of Arkade Developers were off to a super start after making a solid stock market debut on September 24, listing at Rs 176, a premium of 37.5 percent over the issue price of Rs 128 per share on the BSE.
The listing gains, however, miss estimates where shares were trading at a premium of nearly 50 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
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The Rs 410-crore public offer, which is a mix of a fresh issue and an offer for sale, received a hefty response from investors after the issue was subscribed a massive 106 times. Qualified institutional buyers subscribed to the offer 163.16 times while the quota for non-institutional investors fetched 162.75 times subscription. The portion for retail individual investors received 50.65 times the subscription.
The company has a strong foothold in prime locations across Mumbai, with a portfolio including new developments and redevelopment projects. It has shown steady revenue growth and solid financial performance, underscoring its robust fundamentals.
The company plans to use the net proceeds from the issue for several purposes, including covering part of the development costs for its ongoing projects—Arkade Nest, Prachi CHSL, and C-Unit. Additionally, the funds will be allocated for acquiring land for future real estate projects, which are yet to be identified, and for general corporate purposes.
Earlier, the realty firm raised Rs 122.40 crore from anchor investors.
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