Schedule of Arkade Developers
| Issue open date | 16 Sep 2024 |
| Issue close date | 19 Sep 2024 |
| UPI mandate deadline | 19 Sep 2024 (5 PM) |
| Allotment finalization | 20 Sep 2024 |
| Refund initiation | 23 Sep 2024 |
| Share credit | 23 Sep 2024 |
| Listing date | 24 Sep 2024 |
| Mandate end date | 04 Oct 2024 |
| Lock-in end date for anchor investors (50%) | 20 Oct 2024 |
| Lock-in end date for anchor investors (remaining) | 19 Dec 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Arkade Developers
Incorporated in 1986, Arkade Developers Limited is a real estate development company developing premium aspirational lifestyle residential premises in Mumbai, Maharashtra. The business can broadly be classified into two categories: (i) development/construction of residential premises on land acquired by the Company (New Projects) and (ii) redevelopment of existing premises (Redevelopment Projects). Between 2017 and Q1 2024, The company launched 1,220 residential units and sold 1,045 residential units in different markets in MMR, Maharashtra. In the last 2 decades, It has completed 28 projects (including 11 projects on a stand-alone basis (including 2 projects executed through partnership firms in which we hold the majority stake), 8 projects executed by its Promoter through his proprietorship, M/s Arkade Creations, and 9 projects through joint development arrangements with other third parties) aggregating more than 4.5 million square feet of development and have catered to more than approximately 4,000 customers.
Financials of Arkade Developers
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹410 crores |
| Fresh Issue | ₹410 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Funding development expenses | 250 (60.98%) |
| Acquisition of land for real estate projects and general corporate purposes | 143.5 (35%) |
| Others | 16.5 (4.02%) |
Strengths
- The company is a leading player and amongst the top 10 developers in terms of supply in select micro-markets of, and an established developer in, Mumbai Metropolitan Region (MMR), Maharashtra
- It has strong in-house resources as the company adopted an integrated business model to carry on a project from its initiation to completion. Its in-house resources include legal team, business development, purchase and contracts, and a sales and marketing team.
- A key aspect of its success and growth over the years has been the ability to consistently deliver projects within, and often before, the scheduled project completion timelines.
Risks
- The company does not enter into long-term agreements for the supply of labour and key materials for the construction of its projects. Any significant increase in the prices, or shortage of, or delay or disruption in supply of labour or key materials for construction may result in time or cost overruns and may impact the business prospects.
- The company relies on third-party contractors whom it does not control to construct the projects.
- The company’s revenue from operation is significantly dependent on its ability to sell the units on time. If it is not able to sell the project inventories promptly, then it may adversely affect the business.
- The company operates in a competitive industry. Any inability to compete effectively may lead to a lower market share or reduced operating margins.
- The entire business is concentrated within the MMR region. Any event or circumstance that adversely affects the real estate market in the MMR region will hurt the business.
- Its redevelopment projects have long gestation periods and any delays and cost overruns could adversely affect the business prospects.