Arkade Developers Limited

About Arkade Developers Limited  Incorporated in 1986, Arkade Developers Limited is a real estate development company with a focus on lifestyle residential premises in Mumbai, Maharashtra. It has two business verticals. New Projects deals with the development of residential premises on land acquired by the company, and Redevelopment Projects deals with the redevelopment of existing premises.  It is strategically located in Mumbai, one of the biggest and most expensive real estate markets in India. Between 2017 and Q1 2024, it launched 1,220 residential units and sold 1,045 residential units in different markets in MMR (Mumbai Metropolitan Region), Maharashtra. It has also successfully completed redevelopment of 10 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai between CY 2003 and FY24.  In the last two decades, it has served ~4,000 customers and developed more than 4.5 million square feet of projects. It has two subsidiaries: Arkade Paradigm and Arkade Realty.  As of 30 June 2024, it has 6 ongoing projects in the western and eastern suburbs of Mumbai. 3 are new projects and 3 are redevelopment projects. It also has 6 upcoming projects and has received the letter of intent for 2 redevelopment projects for which it is yet to execute a contract.  Its average land development area is ~1 acre. Its average PCT (Project Completion Time frame), i.e., the period between receiving possession of the land and delivery of the possession to the first customer, is approximately 3 years.  Between FY22 and FY24, it saw a CAGR rise of 40% in its revenue from operations and 34% in its profit. Moreover, the pricing and new residential supply and absorption rates in the housing market in MMR is forecasted to gain momentum and rise steadily between 2017 and 2026, which could benefit the company.  And now, Arkade Developers Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹410 crore, comprising entirely of the fresh issue. The money raised from the fresh issue will be utilised to fund land acquisition and development of ongoing projects. Its shares will be listed on the NSE and BSE.  Here are key details about the Arkade Developers IPO:     Company Name  Arkade Developers Limited Limited   Company Type  Private    Company Established On  1986   Arkade Developers Limited IPO Opening Date  16th September 2024    Arkade Developers Limited IPO Closing Date  19th September 2024   Arkade Developers Limited IPO Allotment Status  20th September 2024    Credit of Shares to the Demat Account  23rd September 2024   Arkade Developers Limited IPO Listing Date  24th September 2024    Arkade Developers Limited IPO Face Value  ₹ 10 per share   Arkade Developers Limited IPO Lot Size  110 shares    Arkade Developers Limited IPO Issue Size  Approx ₹410 crore   Arkade Developers Limited IPO to be Listed on  BSE, NSE    Arkade Developers Limited IPO Price band  ₹ 121 – ₹ 128 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 228 crore  ₹ 220 crore  ₹ 634 crore    Net Profit/Loss  ₹ 50.8 crore  ₹ 50.7 crore  ₹ 122 crore               Here’s a quick look at Arkade Developers Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Strategic location of projects in micro-markets of MMR, Maharashtra, which has contributed the highest annual sales share of residential units across the top 7 cities in India between CY 2021 to Q1 2024.  Amongst the top 10 developers in terms of supply in select micro-markets of MMR, which is India’s commercial capital and also one of the highest density cities in the country.  Integrated business model with strong in-house resources including a legal team, business development, purchase and contracts, and a sales and marketing team.  Timely completion of projects having completed 28 projects, aggregating to more than 4.5 million square feet of development and 4,000 customers in the last two decades.  Consistent financial performance with EBITDA margins of 30%, 31%, and 26% in FY22, FY23, and FY24, respectively.   Risks and threats   Subject to penalty clauses under the agreements with customers for any delay in the completion of its projects.  Relies on third party contractors to construct its projects and failure on the part of the contractors can adversely affect its operations and reputation.  Revenue is significantly dependent on its ability to sell units and the MMR region had the highest level of unsold inventory amongst the top 7 Indian cities between CY 2021 and Q1 CY 2024.  Faces competition from international, national and regional developers for land, sale of units in projects, manpower resources and skilled personnel.  Subject to the risks of geographical concentration as its entire business is based within the MMR, Maharashtra.  Has experienced negative cash flows from investing and financing activities in FY24 and from operating activities in FY22 and FY23.  Redevelopment projects have long gestation periods and any delays and cost overruns could adversely affect its returns.  Has a total sanctioned and outstanding indebtedness of ₹240 crore and ₹94 crore as of 30 June 2024.            Arkade Developers Limited IPO details  | Arkade Developers Limited IPO date  According to the offer document filed by the company with the SEBI, the Arkade Developers IPO’s opening date – in other words, the Arkade Developers IPO launch date – will be 16th September 2024. The Arkade Developers IPO closing date is 19th September 2024. After this, investors will be updated about the allotment status on 20th September 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 23rd September 2024. The Arkade Developers IPO listing date is 24th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Arkade Developers Limited IPO Price Band  The IPO is a fresh issue. The Arkade Developers IPO price band has been set between ₹121 and ₹128 per share. Interested investors can choose a price within this band to apply for the IPO.  The Arkade Developers IPO listing price will be determined on 24th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Arkade Developers Limited IPO Lot size  The Arkade Developers IPO details have been declared. The Arkade Developers IPO lot size is set at 110 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Arkade Developers IPO issue size is approx ₹410 crore.           How to pre-apply for the Arkade Developers Limited IPO?  You can pre-apply for the Arkade Developers Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Arkade Developers Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Arkade Developers Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Arkade Developers Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Arkade Developers Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Arkade Developers Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Arkade Developers Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Arkade Developers Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Arkade Developers Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Arkade Developers Limited IPO  To apply for the Arkade Developers Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Arkade Developers Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Arkade Developers Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.