Arkade Developers Makes Strong Stock Market Debut

Arkade Developers Ltd., a Mumbai-based real estate firm, has made an impressive entry into the stock market, debuting with a 37% premium over its initial public offering (IPO) price. On Tuesday, shares of Arkade Developers opened at ₹176, significantly above the issue price of ₹128, marking a robust start for the company.

The IPO, which was conducted from September 16 to 19, 2024, garnered substantial interest from various categories of investors, raising a total of ₹410 crore through the issuance of 3.2 crore shares. According to the report, the IPO was oversubscribed 113 times, highlighting the strong demand from investors.

Shivani Nyati, Head of Wealth at Swastika Investmart, noted, “Arkade Developers Limited made a good entry into the stock market, listing at Rs. 176 per share, a substantial 37% premium over its issue price of Rs. 128. This robust performance underscores the strong investor interest evident in the IPO’s oversubscription of 113 times.” Nyati further highlighted the company’s focus on high-end residential developments in Mumbai and its consistent financial growth.

Market analysts opine that the Arkade Developers IPO received a favorable response, with optimistic trends in the secondary market and a grey market premium of around ₹64. This premium signals a potential 50% listing gain for those allotted shares.

The share allocation from the IPO was distributed among various investor categories, with a total of 2,23,12,500 shares available. Qualified Institutional Buyers (QIB) were allotted 63,75,000 shares, while Non-Institutional Investors (NII) received 47,81,250 shares, with small investors getting 15,93,750 shares and large investors 31,87,500 shares. Retail investors received the largest allocation with 1,11,56,250 shares.

Furthermore, the company secured ₹122.40 crore from anchor investors before the IPO, reflecting substantial confidence from major institutional players. The overall market sentiment towards Arkade Developers remains positive, driven by the company’s growth potential and financial stability.