Mumbai-based Arkade Developers opened its Rs 410-crore initial public offering for subscription on September 16. The issue garnered strong interest from investors on the first day of bidding.
Investors bought 13.79 crore equity shares, which were higher by 5.8 times the IPO size of 2.37 crore equity shares, the subscription data on the exchanges showed.
Retail investors as well as non-institutional investors boosted the IPO subscription, buying 8.06 times and 7.9 times the allotted quotas, respectively. Qualified institutional buyers picked 0.24 times the portion set aside for them.
The response to the issue from company's employees, too, was strong as they bid 7.63 times the reserved portion. Arkade has reserved Rs 2 crore worth equity shares for its employees.
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The real estate development company, which focuses on the development of premium aspirational lifestyle residential premises in Mumbai, has developed 2.2 million square feet of residential property by June 2024. In the last 2 decades, it has completed 28 projects in the MMR (Mumbai Metropolitan Region).
The IPO consists of solely fresh issue of shares worth Rs 410 crore, with no offer-for-sale component. The price band for the issue, which closes on September 19, has been fixed at Rs 121-128 per share.
Before the issue opening, the company has already mopped up Rs 20 crore via pre-IPO placement of 16.26 lakh equity shares at a price of Rs 123 per equity share. Post pre-IPO placement, the size of the fresh issue has been reduced to Rs 410 crore, from Rs 430 crore earlier.
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The Jain family-owned company will spend Rs 250 crore for the development of ongoing projects, and the remaining IPO funds will be utilised for acquisition of yet-to-be identified land for real estate projects and general corporate purposes.
Equity shares will be listed on the BSE and the NSE next week. Unistone Capital is the sole merchant banker to the issue, while Bigshare Services is the registrar to the offer.
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