NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Anand Rathi Report
Arkade Developers Ltd. launched its initial public offering today and the offer closes for subscription on Sept. 19. The Mumbai-based real estate developer has fixed the price band in the range of Rs 121-128 per share with a face value of Rs 10 each for the issue.
The Rs 410 crore IPO comprises completely of a fresh issue of 32,031,250 shares. The minimum lot size for retail investors is 110 shares.
Objects of the fresh issue
Funding the costs to be incurred in developing the ongoing Projects.
Funding acquisition of land for future real estate projects.
General corporate purposes.
Valuation and outlook
Arkade Developers, a prominent player in Mumbai is a rapidly expanding real estate development company. The company is focused on mid-tier residential realty projects on both new and redevelopment segments in suburban Mumbai MMR region.
Despite being in the capital intensive sector the company has very limited long-term borrowings since its projects are financed through internal accruals and promoter equity.
Given these factors the company’s exposure to a niche realty segment is well positioned against the most expensive real estate markets.
On the valuation front, at the upper price band, For FY24 Arkade is seeking PE of 19.3 times and P/BV 3.2 with market capitalization of 23760 million post-issue which seems the issue fairly priced.
Therefore, considering business growth visibility and stable financial performance the company is well placed to tap in rising Mumbai’s real estate sector we recommend a “Subscribe for Long Term” to the IPO.
Click on the attachment to read the full IPO report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
Small-City Real Estate Was Charming During Pandemic, Are They Still?
Nov 13, 2024
Apple Eyeing Smart Glasses Market, Reportedly Conducting Internal Surveys
Nov 11, 2024
Residential Real Estate: Resilient With Deleveraging Focus: CareEdge Analysis
Nov 06, 2024
House Of Hiranandani To Invest Rs 12,500 Crore To Develop Multiple Projects In Mumbai Region
Oct 30, 2024
POPULAR