Investors, allotted shares in the initial public offering (IPO) of Arkade Developers Ltd., could make a 49% gain, as per the grey market premium trends.
Arkade Developers is set to make market debut on the BSE and NSE on Sept. 24. Ahead of the much-awaited listing, the GMP on the stock stood at Rs 63, as per Investors Gain. This means shares of Arkade Developers Ltd. are likely to list at Rs 191 against the upper IPO price band of Rs 128. At this level, investors would make a gain of 49.2% over their investment.
However, investors must note that GMP is highly speculative and may not be a true indicator of how the stock may perform on debut.
The public offering was launched on Sept. 16 with a price band of Rs 121-128 per share with a face value of Rs 10 apiece.
Arkade Developers IPO was booked over 106 times at the end of the bidding process on Sept. 19. Investors placed bids for more than 253.6 crore shares against 2.37 crore shares in the offer. The company received an overwhelming response from investors across categories.
Arkade Developers IPO category Wise Subscription
Instituional investors: 163.16 times
Non-institutional investors: 162.5 times
Retail Investors: 51 times
Employees: 50 times
The allotment of shares in Arkade Developers IPO was finalised on Sept. 20. Retail investors could have applied in the IPO with a minimum lot size of 110 shares which translated to an investment of Rs 14,080.
The company plans to use the money raised via the public issue for development costs of its ongoing projects and the acquisition of yet-to-be-identified land for real estate projects.
A portion of the money raised in the IPO will also be used for general corporate purposes.
Arkade Developers Limited is a real estate development company, operating primarily in Mumbai. 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. This included 17 new and 11 redevelopment projects.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
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