Arkade Developers Ltd., a burgeoning real estate player, seeks to raise Rs 430 crore through an IPO, as per its preliminary filing with SEBI. The IPO consists solely of fresh equity shares, as detailed in its Draft Red Herring Prospectus. Funds will fuel ongoing projects, future acquisitions, and corporate needs. With a stronghold in Mumbai, the company has developed 1.8 million sq. ft. of residential property and launched 1,040 residential units from 2017 to June 2023. Notable projects include Arkade Nest, Arkade Crown, and others. The firm's revenue grew at a CAGR of 26.69% from 2021 to 2023. Unistone Capital leads the IPO, set to list on both the BSE and NSE, with Bigshare Services as registrar.
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Arkade Developers Ltd., a dynamic player in the real estate arena, has taken the bold step of initiating an initial public offering (IPO) to secure a substantial sum of Rs 430 crore, with preliminary documents duly filed before the vigilant gaze of the capital markets regulator, SEBI. This marks the dawn of a new era for the company as it ventures into the public arena for the first time, emphasizing that the IPO is exclusively comprised of fresh equity shares with no provisions for an offer for sale (OFS) component, a revelation elegantly unveiled in the Draft Red Herring Prospectus (DRHP) unveiled last week.
The monetary influx stemming from this IPO shall be judiciously directed towards advancing the company's ongoing and forthcoming real estate projects, facilitating the acquisition of prospective real estate ventures, and satisfying the needs of general corporate exigencies. Arkade Developers has been a meteoric presence in the ever-evolving world of real estate, with a conspicuous footprint primarily in the vibrant tapestry of Mumbai. As of July, the company has masterminded the realization of a staggering 1.8 million square feet of residential property, a lion's share of which was achieved through strategic partnerships where Arkade assumed the mantle of majority stakeholder.
From 2017 to the quarter ending in June 2023, Arkade Developers impressively launched 1,040 residential units, swiftly attracting discerning buyers across various markets in the Mumbai Metropolitan Region (MMR), Maharashtra, who eagerly embraced 792 of these units. Within the myriad of projects currently revealing their magnificence, Arkade Developers proudly presents a captivating collection of gated communities, each exemplifying a unique allure and bearing names like Arkade Nest, Arkade Crown, Arkade Aspire, Arkade Prime, and Arkade Aura. Shifting our focus to the fiscal aspect, Arkade Developers, rooted in Mumbai, has notched up commendable revenues in recent fiscal years. The financial scoreboard for FY23, FY22, and FY21 registers figures of Rs 224.01 crore, Rs 237.18 crore, and Rs 113.18 crore, respectively.
A remarkable trajectory of revenue generation emerges, illustrating a robust compound annual growth rate (CAGR) of 26.69% during the period encompassing 2021 to 2023. As the IPO gains momentum, the equity shares of Arkade Developers will grace the listings of both the BSE and the NSE, beckoning a broader spectrum of investors to partake in the company's growth story. It is worth highlighting that Unistone Capital adorns the role of merchant banker, orchestrating the intricacies of the offering, while the role of registrar for the offer has been entrusted to Bigshare Services, as meticulously documented in the submissions made on the eventful date of August 31.
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