Top Reasons to Subscribe Arkade Developers Limited IPO

Top Reasons to Subscribe Arkade Developers Limited IPO

About Arkade Developers

Arkade Developers Limited is a real estate development company that specializes in high-end, sophisticated residential projects in Mumbai, Maharashtra. The company focuses on two key areas: the development of new residential buildings on land it acquires and the redevelopment of existing buildings, revitalizing older properties across Mumbai.

Between 2017 and the first quarter of 2024, Arkade launched 1,220 residential units, selling 1,045 of them across various markets in the Mumbai Metropolitan Region (MMR). By June 30, 2024, the company had developed approximately 2.2 million square feet of residential space. Since its inception, the company has completed the redevelopment of 10 projects in Mumbai's western suburbs and one project in South-Central Mumbai through a partnership firm, adding up to 1 million square feet of built-up area.

Over the past two decades, Arkade Developers has completed 28 projects, including 11 executed solely by the company, two through majority-owned partnership firms, and eight led by the promoter under M/s Arkade Creations. Nine additional projects were completed through joint development agreements with third parties. Altogether, these efforts have delivered over 4.5 million square meters of built-up area to more than 4,000 satisfied customers.

As of June 30, 2024, the company employed 201 permanent staff and had an additional 850 employees working on a contract basis.

Key Factors

  • Extensive Experience in Real Estate Development:?

With over two decades of experience, Arkade has a proven track record of successfully completing 28 projects across Mumbai, showcasing their capability in both new developments and redevelopment projects. Their expertise in handling different project types has contributed to their reputation in the market.

  • Focus on High-End Residential Projects:?

The company specializes in sophisticated, high-end residential developments, catering to the luxury housing market in Mumbai, which remains a highly sought-after segment in one of India's most dynamic real estate markets.

  • Strong Redevelopment Expertise:?

Arkade has successfully completed the redevelopment of 10 projects in the western suburbs of Mumbai and one in south-central Mumbai. This experience in redevelopment positions the company well in a city like Mumbai, where space is limited, and redeveloping older buildings is a major growth area.

  • Large Project Portfolio:?

The company has developed over 2.2 million square feet of residential space by June 2024, and has been involved in over 4.5 million square meters of total built-up area across all projects. This demonstrates their capacity to handle large-scale projects and meet customer demands.

  • Partnerships and Collaborations:?

Arkade has successfully completed projects through joint development agreements and partnerships with other firms. These collaborations have enabled them to expand their portfolio and tap into new opportunities.

  • Sizable Workforce:?

With 201 permanent employees and 850 contract workers as of June 2024, Arkade has the manpower to support its ongoing projects and handle growth in its operations, ensuring efficiency and project completion on time.

  • Established Customer Base:?

Arkade has served over 4,000 customers through its projects, which highlights the trust and satisfaction they have built over the years in a competitive real estate market like Mumbai.

Key Details

IPO Date: 16 September 2024 to 19 September 2024

Face Value: ?10 per share

Price Band: ?121 to ?128 per share

Lot Size: 110 Shares?

Total Issue Size: ?410 Cr

Objectives Of The IPO

  • Funding is part of the costs to be incurred in developing the Ongoing Projects.
  • Funding acquisition of yet-to-be-identified land for real estate projects and general corporate purposes.

Conclusion

Arkade Developers Limited presents a compelling investment opportunity due to its extensive experience in Mumbai's high-end real estate market. With over two decades of operations, the company has successfully completed 28 projects, including new developments and redevelopments, positioning itself strongly in Mumbai's competitive landscape. The company's strong focus on luxury residential properties and its expertise in redevelopment, particularly in space-constrained areas, offer significant growth potential.

Arkade's robust project portfolio, partnerships, and large workforce further enhance its ability to execute large-scale projects efficiently. With an IPO priced at ?121 to ?128 per share and a targeted issue size of ?410 crore, the funds raised will be used to support ongoing projects and acquire new land, ensuring future expansion. Strong financials, with increasing revenue and profit growth, make Arkade a solid player in Mumbai’s real estate market, offering a stable and promising investment.

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