Arkade Developers has launched its Initial Public Offering (IPO), which began on September 16. The company aims to raise ₹410 crore through this IPO, attracting significant attention from investors. Let’s break down the key details about this IPO and see if it’s worth considering for your investment portfolio.
Arkade Developers, a well-known real estate company with a solid track record, is offering 3.2 crore shares at a price range of ₹121 to ₹128 per share. The IPO includes a mix of new shares being issued and shares being sold by existing shareholders.
The IPO received a strong response on its opening day, with oversubscription exceeding six times. This indicates that investors were eager to buy shares, with more applications than shares available.
By the second day, the IPO was subscribed 12.37 times overall. Breaking this down further:
- The portion reserved for retail investors was subscribed 16.15 times.
- The portion for Non-Institutional Investors (NII) was subscribed 19.58 times.
- The Qualified Institutional Buyers (QIB) segment had received bids for only 0.25 times of the available shares.
The Grey Market Premium (GMP) is an unofficial measure of how the stock might perform once it lists on the stock exchange. It reflects the premium at which shares are traded in the grey market before their official listing.
For Arkade Developers, the GMP has increased to ₹86 from ₹70 before the IPO began. This rise indicates investor optimism about the stock’s future. If we consider the upper price band of ₹128 per share, the estimated listing price is around ₹214, reflecting a 67.19% premium over the issue price.
Before the IPO officially opened, Arkade Developers raised approximately ₹122.40 crore from anchor investors. These investors were allocated 95.62 lakh shares at ₹128 each. Anchor investors are typically large institutional investors who commit substantial amounts before the IPO opens to the general public.
Key Dates
- IPO Opening Date: September 16
- IPO Closing Date: September 19
- Share Allotment Date: September 20
- Expected Listing Date: September 24
Arkade Developers’ IPO has shown strong investor interest, with high subscription rates and a positive GMP. These indicators suggest that the IPO might be a good investment opportunity. However, it’s important to do thorough research and consider your own financial situation before investing.
