Arkade Developers Shares Debut At 37% Premium Over IPO Price

Shares of Arkade Developers Ltd. listed on the BSE on Tuesday at Rs 175.90 apiece, a premium of 37.4% over its issue price of Rs 128 per share. On the National Stock Exchange, the stock debuted at Rs 175 per share, marking a premium of 36.7%.

The Mumbai-based realty player's maiden issue consisted completely of a fresh issue of 3.2 crore shares, aggregating to Rs 410 crore. The issue was subscribed 106.83 times on the third and final day, led by demand from institutional investors.

Proceeds from the issue will be used to finance the costs to be incurred in the development of ongoing projects. Part of the proceeds will also be used for acquisitions of yet-to-be-identified land for real estate projects and general corporate purposes.

The IPO was subscribed 106.83 times.

• Institutional investors: 163.16 times.

• Non-institutional investors: 163 times.

• Retail investors: 51.39 times.

• Employee reserved: 50.49 times.

The real estate development company's operations are strategically located in the western suburbs of the Mumbai Metropolitan Region. It has also developed high-end luxury projects in south Mumbai and eastern suburbs.

In the last two decades, Arkade Group has completed 28 projects, aggregating more than 4.5 million square feet of development. Of the 28 completed projects, 17 were new projects and 11 were redevelopment projects.