Mumbai's Arkade Group is set for a transformative debut, aiming to launch an initial public offering (IPO) in December 2023. With plans to submit a draft red herring prospectus (DRHP) to SEBI by August 31, the real estate powerhouse seeks to raise approximately ?600 crores. Anticipating a valuation of ?4,000 crores, the IPO involves a 15 percent reduction in promoter equity. Arkade Group is engaged in multiple residential projects across Mumbai's micro-markets, while also eyeing the commercial real estate sector through a leasing model. The company's sales momentum has surged, reflecting upgraded offerings and a strategic shift in project focus.
In a strategic move, Mumbai's Arkade Group is navigating the financial landscape, unveiling a plan to present a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) by August 31. With sights set on a transformative debut, the real estate powerhouse is poised for an initial public offering (IPO) in December 2023, aimed at amassing an impressive capital of approximately 600 crores.
Envisaging an approximate valuation of Rs 4,000 crore, the IPO will encompass a 15 percent reduction in promoter equity. Arkade Group is bustling with activity, overseeing five ongoing projects across micro-markets such as Borivali, Goregaon, Santacruz, Andheri, and Mulund. The company's focal point remains residential initiatives and the revitalization of aging structures in Mumbai's eastern and western suburbs.
Company official have indicated that after a prosperous IPO, their roadmap includes venturing into the domain of commercial real estate. While their ongoing residential projects already encompass commercial and retail spaces, the pivotal transformation entails embarking on a commercial property leasing model, diverting from conventional direct property sales. This tactical evolution holds the promise of a consistent and enduring rental income flow over the course of time.
The company's sales momentum has been promising with an impressive 50 percent surge in project sales from one quarter to the next. This remarkable expansion is credited to the upgraded offerings introduced this year, setting the stage for an outstanding sales performance in this fiscal year. Regarding their project approach, the company appears to have redirected their attention from creating 1 BHK apartments, a trend that was prevalent five years ago. Among their ongoing projects, they have exclusively introduced 1 BHK apartment in Andheri, while the remaining developments consist of 2 BHK apartments or larger configurations.
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