Mumbai-based real estate firm Arkade Developers' initial public offering has garnered strong interest from investors, getting subscribed 29.44 times on September 18, the third day of bidding.
The company targets to raise Rs 410 crore through the public issue at the upper end of price band of Rs 121-128 per share. The book-built issue is a sole fresh issue by the company, hence the entire IPO proceeds will go to the company.
Investors have bought 69.98 crore equity shares so far on Wednesday, against the offer size of 2.37 times, the subscription data available on the exchanges showed.
Non-institutional investors (or high networth individuals) were at the leading position to boost the IPO subscription, buying 58.83 times the allotted quota, followed by retail investors who have bid 33.28 times the reserved portion. Qualified institutional buyers showed less interest in the issue so far, subscribing 0.61 times the part set aside for them.
Employees remained aggressive since the day one, buying 31.47 times the allotted quota. The company has reserved Rs 2 crore worth equity shares for its employees.
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The public issue will close on September 19.
The real estate developer has already raised Rs 122.4 crore through anchor book launched for a day on September 13. Institutional investors such as BNP Paribas Financial Markets, Saint Capital Fund, Stern Global Fund VCC, and Societe Generale among others, participated in the anchor book.
Further, before the filing of red herring prospectus, Arkade had mobilised Rs 20 crore in a pre-IPO placement of 16.26 lakh shares at a price of Rs 123 per share.
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The Amit Mangilal Jain-owned company will utilise the entire net issue proceeds for developing the ongoing projects (Arkade Nest, Prachi CHSL, and C-Unit), acquisition of yet-to-be-identified land for real estate projects, and general corporate purposes.
The premium lifestyle residential premises developer has developed 2.20 million square feet of residential property till June 2024.
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