Arkade Developers Receives Approval from SEBI for Proposed IPO

Mumbai based real estate firm Arkade Developers has secured approval from market regulator Sebi for its proposed initial public offering (IPO) aiming to raise ₹430 crore. The company, which filed its draft prospectus last September plans to issue fresh equity shares with no Offer for Sale (OFS) component. Unistone Capital will serve as the merchant banker and Bigshare Services as the registrar to the offer. Arkade Developers intends to utilize the net proceeds for advancing ongoing projects, financing upcoming ventures, acquiring future real estate projects and fulfilling general corporate objectives.

About Arkade Developers

Arkade Developers is among Mumbai's fastest growing real estate developers focusing on premium residential properties in the city. With a presence in Maharashtra particularly Mumbai, the company has completed 27 projects over the past two decades totaling more than 4 million square feet. As of 31 July 2023, it has developed 1.80 million square feet of residential property. According to its DRHP report the company has served around 4,000 customers. Between 2017 and the first quarter of 2023, Arkade Developers introduced 1,040 residential units to various markets in the Mumbai Metropolitan Region (MMR), Maharashtra and sold 792 units during the same period.

Ongoing Projects

The company's ongoing projects consist of five developments in prime locations across Mumbai's western and eastern suburbs expected to be completed within the next 3 to 5 years. Additionally, Arkade Developers has two upcoming redevelopment projects in the Mumbai Metropolitan Region (MMR) located at Malad West and Vile Parle East along with letters of intent for four more redevelopment projects. It has also been confirmed as the preferred developer for one project in the MMR.

Financial Overview

Arkade Developers reported revenues of ₹2,240.13 million in Fiscal 2023, ₹2,371.82 million in Fiscal 2022 and ₹1,131.85 million in Fiscal 2021, reflecting a Compound Annual Growth Rate (CAGR) of 26.69% between fiscal 2021 and fiscal 2023. The net proceeds from the IPO will be utilized for the development of ongoing and upcoming projects, funding acquisitions of future real estate projects and general corporate purposes.

Final Words

Arkade Developers' IPO marks a milestone for the company as it seeks to capitalize on its strong presence and growth prospects in Mumbai's real estate market. With a focus on premium residential developments and a track record of successful projects the company aims to leverage the funds raised to further enhance its portfolio and drive future growth. Investors keen on participating in the IPO will be awaiting the announcement of the price band and important dates, anticipated to be revealed in due course.