Arkade Developers IPO Anchor Allocation at 30%

Arkade Developers IPO saw a positive anchor allocation response, with 30% of the total IPO size subscribed by anchor investors. Out of 32,031,250 shares on offer, anchors picked up 9,562,500 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 13th September 2024, just ahead of the IPO opening on 16th September 2024.

The book-built issue of ₹410.00 crores comprises a fresh issue of 32,031,250 shares. The price band is set at ₹121 to ₹128 per share, with a face value of ₹10 per share. This includes a share premium of ₹118 per share at the upper end of the price band.

The anchor allocation process, which took place on 13th September 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹128 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

Notably, the 9,562,500 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 50% before the anchor allocation to 20% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Arkade Developers Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 20th October 2024 
• Lock-in Period (Remaining Shares): 19th December 2024

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Arkade Developers IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 13th September 2024, Arkade Developers IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 9,562,500 shares were allotted to 9 anchor investors. The allocation was done at the upper IPO price band of ₹128 per share, resulting in an overall anchor allocation of ₹122.40 crore. The anchors have already absorbed 30.00% of the total issue size of ₹410.00 crore, indicating strong institutional demand.

Key IPO Details:

• IPO Size: ₹410.00 crores
• Shares Allocated to Anchors: 9,562,500
• Anchor Subscription Percentage: 30%
• Listing Date: 24th September 2024
• IPO Opening Date: 16th September 2024

About Arkade Developers IPO and How to Apply for Arkade Developers IPO 

Arkade Developers Limited is a real estate development company focused on developing high-end, sophisticated lifestyle residential developments in Mumbai, Maharashtra. The company's business is divided into two main segments: development/construction of residential buildings on land acquired by the company (new projects) and redevelopment of existing buildings (Redevelopment Projects). Between 2017 and Q1 2024, the company launched 1,220 residential units and sold 1,045 residential units in various markets in MMR, Maharashtra.

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