Arkade Developer IPO Makes Strong Stock Market Debut

The initial public offering (IPO) of Arkade Developer Limited has been successfully listed on Indian stock market exchanges today, September 24, 2024. The equity shares of Arkade Developer Limited have been admitted for dealings under the ‘B’ Group of Securities, as confirmed by the Bombay Stock Exchange (BSE). Trading in Arkade Developer shares commenced at 10:00 AM, reflecting significant investor interest.

According to experts in the stock market, the public issue received a substantial response, with a subscription rate exceeding 113 times the offer. This substantial interest is reflected in the secondary market where sentiments are notably bullish. Market observers cite that the grey market premium indicates a promising debut, projecting a listing gain of around 50 per cent for the early investors.

The grey market premium, valued at around ₹64, suggests that Arkade Developer shares might be listed at approximately ₹192, signifying a potential 50 per cent listing gain. Sagar Shetty, a Research Analyst at StoxBox, highlighted that the IPO was oversubscribed and expects the stock to list with a premium of around 66% above the upper price band.

Speaking on the matter, Arun Kejriwal, founder of Kejriwal Research and Investment Services, remarked, “The public issue benefited from its smaller size, which escalated the subscription status. Achieving over 100 times subscriptions indicates the robust demand. However, caution is advised as the market could witness volatility leading to potential downsides post-listing.”

Investment experts and stock analysts suggest caution, advising investors to consider booking profits shortly after listing due to potential market corrections, as observed in other recent IPOs’ performances. It is recommended that investors consult certified financial advisers before making decisions.

The Arkade Developer IPO’s promising inception on the stock market highlights current positive investor sentiment and an optimistic outlook on Dalal Street. Yet, it also underscores the necessity for strategic planning in the dynamic financial market atmosphere.