Arkade Developers
Book Building issueMainboardNSE₹410 Cr issue
+37.42%
Listing gain over issue price
Issue size
₹410 Cr
1 lot at cut-off
₹14,080
Lot size
110shares
Open
16 Sep 2024
Close
19 Sep 2024
Allotment
20 Sep 2024
Listing
24 Sep 2024
Listing performance
Issue price
₹128
Listed at
₹175.90
Listing-day close
₹165.86
Latest price
₹104.50
Close on 23 Oct 2026
Listing gain
+37.42%
Return since issue
-18.36%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Sep 2024 – 19 Sep 2024
- Listing date
- 24 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹128 per share
- Lot size
- 110 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹410 Cr
- Market cap at offer price
- ₹2,376 Cr
- Promoter holding
- 85.58% → 70.82% pre-issue → post-issue
- ISIN
- INE0QRL01017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- Arkade House, Opp.Bhoomi Arkade, Near Children’s Academy, A S Marg, Ashok Nagar, Kandivali (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 95,62,500 | — | — |
Application size
Minimum 110 shares per lot, in multiples, at ₹128
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 110 | ₹14,080 |
| Retail (max) | 14 | 1,540 | ₹1,97,120 |
| S-HNI (min) | 15 | 1,650 | ₹2,11,200 |
| S-HNI (max) | 71 | 7,810 | ₹9,99,680 |
| B-HNI (min) | 72 | 7,920 | ₹10,13,760 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
95,62,500
Anchor portion
₹122 Cr
at ₹128 per share
Valuation and performance
Valuation at offer price
₹128 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.99 | 6.61 |
| P/E (×) | 16.02 | 19.36 |
| Price to book (×) | 6.02 | — |
| Market cap | — | ₹2,376 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 46.90%
- ROCE
- 47.34%
- Debt / equity
- 0.21
- PAT margin
- 19.35%
- NAV per share
- ₹21.28
- Price to book
- 6.02
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Arkade Developers
Arkade Developers Limited is a real estate development company originally incorporated as a private limited company on May 13, 1986, and converted to a public limited company on July 7, 2023. The company is based in Mumbai, Maharashtra, and primarily operates in the Mumbai Metropolitan Region (MMR). Arkade Developers is engaged in two main business segments: redevelopment of existing structures and development of new residential projects. Between 2017 and Q1 2024, the company launched 1,220 residential units and sold 1,045 residential units. The company has successfully completed redevelopment of 10 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai through a partnership firm, with a combined constructed area of approximately 1,000,000 square feet. As of June 30, 2024, the company has developed 2.20 million square feet of residential property. The company currently has 6 ongoing projects and 6 upcoming projects across different micro-geographies in the MMR.
Company Analysis
from RHPArkade Developers Limited is a Mumbai-based real estate developer engaged in redevelopment of existing structures and development of new residential projects in the Mumbai Metropolitan Region.
Arkade Developers Limited is a real estate development company originally incorporated as a private limited company on May 13, 1986, and converted to a public limited company on July 7, 2023. The company is based in Mumbai, Maharashtra, and primarily operates in the Mumbai Metropolitan Region (MMR). Arkade Developers is engaged in two main business segments: redevelopment of existing structures and development of new residential projects. Between 2017 and Q1 2024, the company launched 1,220 residential units and sold 1,045 residential units. The company has successfully completed redevelopment of 10 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai through a partnership firm, with a combined constructed area of approximately 1,000,000 square feet. As of June 30, 2024, the company has developed 2.20 million square feet of residential property. The company currently has 6 ongoing projects and 6 upcoming projects across different micro-geographies in the MMR.
Real estate developmentResidential real estate
Objects of the Issue
- Funding Development Expenses ₹2,500.00 million p.24
- Funding acquisition of yet-to-be identified land for real estate projects and general corporate purposes [●] million (to be determined; not to exceed 35% of Gross Proceeds for acquisition and 25% for general corporate purposes) p.24
- Funding a part of the costs to be incurred in the development of Ongoing Projects (viz. Arkade Nest, Prachi CHSL and C-Unit) ₹2,500.00 million p.106
- Funding acquisition of yet-to-be identified land for real estate projects and general corporate purposes p.106
- Funding a part of the costs to be incurred in the development of Ongoing Projects (Arkade Nest, Prachi CHSL, C-Unit) and Upcoming Projects, including costs towards obtaining government and statutory approvals and construction costs ₹ 2,500.00 million p.112
- Funding acquisition of yet-to-be identified land for real estate projects and general corporate purposes up to ₹ [●] million (not exceeding 35% of Gross Proceeds) p.119
- Repayment of borrowings
- General corporate purposes
- Not explicitly detailed in this document section
- General Corporate Purposes ₹200.00 million (from Pre-IPO Placement) p.440
Issue Structure
- Total Issue
- Up to ₹4,100.00 million
- Fresh Issue
- Up to ₹4,100.00 million (reduced from ₹4,300.00 million due to Pre-IPO Placement of ₹200.00 million)
- Offer for Sale
- Not Applicable
- Price Band
- [●] per Equity Share (Floor Price and Cap Price to be determined; Cap Price shall be at least 105% of Floor Price and not exceed 120% of Floor Price)
- Lot Size
- [●] Equity Shares and multiples thereof (to be determined)
- Face Value
- ₹10 per Equity Share
Business Model
Arkade Developers generates revenue primarily through the sale of residential units in its redevelopment projects and new development projects. The company follows a blended business model combining both redevelopment of existing structures and development of new residential projects. In Fiscal 2024, the company generated ₹6,347.36 million in revenue from operations, with 66.85% from new projects (₹4,243.40 million) and 33.15% from redevelopment projects (₹2,103.97 million). The company typically pre-sells units during the construction phase to generate revenue and manage working capital requirements.
Business Segments
Redevelopment of existing structures into residential projects
Development of new residential premises on land acquired by the company
Ongoing residential real estate project
Ongoing residential real estate project
Ongoing residential real estate project
Residential project located at Mulund West, MMR with 351 total units for sale (87 units registered under RERA) in a gated community format
5 additional ongoing residential projects in development stage across MMR
Redevelopment of cooperative housing society located at Malad (West), Mumbai with 132 units estimated
Redevelopment of cooperative housing society located at Vile Parle (East), Mumbai with 160 units estimated
4 additional redevelopment projects in initial stages of construction across MMR
Redevelopment of existing residential premises including cooperative housing societies, slum rehabilitation, MHADA layouts, cessed buildings and housing societies
Development and construction of new residential premises on land acquired by the company, including gated communities with lifestyle amenities
Development, construction and marketing of commercial and residential properties including land identification and acquisition, planning, execution and construction
Development and construction of residential premises on land acquired by the company and redevelopment of existing premises. For management purposes, the Company operates in one reportable segment i.e. Real Estate development.
Construction and sale of residential and commercial properties in Mumbai
SWOT Analysis
Strengths
- • Established track record with 28 completed projects aggregating over 4.5 million square feet(p.37)
- • Revenue from operations increased 188.32% year-over-year with strong profitability(p.26)
- • Net worth increased substantially by 61.45% demonstrating financial strength(p.26)
- • Strong customer base with approximately 4,000 customers served(p.37)
- • Concentrated focus on premium aspirational lifestyle residential segment(p.37)
- • Experienced promoter with 25+ years in real estate(p.51)
- • Strong management team with local market expertise(p.51)
- • Established brand and customer trust legacy(p.51)
- • Strong financial performance with healthy debt ratios(p.54)
- • Strategic location in premium micro-markets of MMR(p.124)
- • Leading developer position with top 10 supply share in select MMR micro-markets(p.124)
- • Experienced promoter and technically proficient management team(p.124)
- • Strong in-house resources for project execution(p.124)
- • Consistent track record of timely project completion(p.124)
- • 100% on-time delivery across recently completed projects(p.183)
- • Strong financial metrics with high ROE and ROCE(p.127)
- • Low debt-to-equity ratio indicating conservative financial leverage(p.127)
- • Strategic location in MMR's most expensive and largest residential market(p.225)
- • Top-10 developer status in key western suburbs micro-markets(p.225)
- • Consistent track record of completing projects on time(p.219)
- • Experienced second-generation promoter with 20+ years in real estate(p.219)
- • Strong in-house integrated business model covering full project lifecycle(p.227)
- • Blended business model with capital efficiency from redevelopment projects(p.229)
- • Strong financial position with low debt levels(p.219)
- • Market leadership in premium 2BHK, 3BHK and 4BHK segments(p.225)
- • Experienced management team with established track record(p.279)
- • Strong governance structure with independent board oversight(p.262)
- • Diversified senior management with banking and asset management experience(p.257)
- • Established track record in redevelopment projects in western Mumbai(p.357)
- • Strong revenue growth trajectory with 66.51% CAGR(p.362)
- • Blended business model providing financial flexibility(p.362)
- • Strong profitability with high margins(p.364)
- • Reduced debt burden with improved leverage metrics(p.364)
- • Strong financial performance with 184% revenue growth(p.385)
- • Substantial profit generation and profitability(p.386)
- • Positive operating cash flow generation(p.388)
- • Solid net worth and asset base(p.424)
Weaknesses
- • Entire business concentrated geographically within MMR region with no diversification(p.43)
- • History of delayed statutory filings and untraceable corporate records(p.49)
- • Delays in employee provident fund and state insurance contributions(p.49)
- • High dependence on third-party contractors without direct control(p.33)
- • Negative operating cash flows in Fiscal 2022 and 2023(p.43)
- • Heavy dependence on promoter and key management personnel(p.51)
- • Significant contingent liabilities from tax disputes(p.58)
- • Outstanding dues to creditors and vendors(p.55)
- • Unsecured loans from promoter that can be recalled(p.54)
- • Licensed office not adequately stamped(p.57)
- • Related party transactions with potential conflicts(p.54)
- • Independent directors lack listed company experience(p.57)
- • Litigation involving associate company(p.51)
- • Limited scale compared to major listed peers(p.126)
- • Smaller market presence - only 1% market share in Andheri East over 7 years(p.187)
- • Reliance on redevelopment projects involving tenant compensation obligations(p.113)
- • High project cost estimates not independently appraised by financial institutions(p.112)
- • Dependence on vendors for construction whose quotes may not be honoured(p.117)
- • Limited geographic diversification with heavy concentration in Western Suburbs(p.227)
- • Delayed RoC filings and missing statutory documentation(p.45)
- • Delayed employee contribution payments to PF and ESIC(p.45)
- • Relatively small scale with only 6 ongoing and 6 upcoming projects(p.222)
- • Modest market share at 2% by units in selected micro-markets(p.225)
- • High leverage with significant debt obligations(p.291)
- • Dependence on promoter ownership concentration(p.279)
- • No dividend history despite profitability(p.283)
- • Geographic concentration risk with all operations in MMR(p.362)
- • High dependence on land acquisition in expensive market(p.363)
- • Heavy reliance on third-party contractors for project execution(p.363)
- • Significant contingent liabilities related to GST disputes(p.333)
- • Significant contingent liabilities from GST demands(p.391)
- • Material GST litigation with substantial tax demand(p.400)
- • Existing debt obligations(p.390)
- • Multiple pending litigations with customers and societies(p.400)
- • Promoter involved in personal tax litigation(p.404)
Opportunities
- • Expansion plans for 12 new projects across MMR with 3.7 million square feet in development(p.37)
- • Growing demand in MMR housing market with absorption surpassing supply(p.25)
- • Net Proceeds deployment of ₹4,100 million for development and land acquisition(p.25)
- • Portfolio includes both new development and redevelopment projects offering diversified revenue streams(p.35)
- • Growth in Indian real estate sector post-pandemic(p.59)
- • Strong housing finance market recovery(p.59)
- • Expansion into yet-to-be identified land acquisition(p.110)
- • Development of ongoing projects in premium MMR locations(p.110)
- • Capitalize on growing demand in MMR driven by demographic dividend and urbanization(p.146)
- • Benefit from infrastructure development projects improving connectivity(p.165)
- • Expand through redevelopment opportunities in high-value MMR micro-markets(p.112)
- • Leverage increased institutional investor interest in organized developers(p.150)
- • Participate in growing affordability-driven demand across MMR(p.151)
- • Growth in housing demand from rising disposable incomes and family expansion trends(p.169)
- • Significant infrastructure development enabling market expansion(p.206)
- • Navi Mumbai International Airport will drive suburban demand(p.206)
- • Strong residential market fundamentals with high capital appreciation(p.227)
- • Consolidation opportunity as larger players acquire smaller developers(p.229)
- • Move up value chain to premium/luxury segment(p.229)
- • Multiple upcoming metro lines will enhance connectivity to operations(p.207)
- • Sustained employment growth driving housing demand in organized sectors(p.229)
- • Strong growth in revenue from operations(p.292)
- • Increasing profitability trajectory(p.292)
- • Access to capital markets through IPO(p.295)
- • Continued expansion in high-growth MMR residential market(p.357)
- • Growing urbanization and housing demand in India(p.362)
- • Expansion into eastern suburbs with substantial growth potential(p.360)
- • Growing mortgage industry with 17% CAGR over 15 years(p.362)
- • Pipeline of 12 ongoing and upcoming projects across 3.7 million sq ft(p.359)
- • Expansion through multiple new projects in pipeline(p.408)
- • Access to capital markets through IPO(p.393)
- • Completed and ongoing projects across premium segments(p.393)
Threats
- • Intense competition from international, national and regional developers(p.43)
- • Limited land availability and high acquisition costs in MMR(p.36)
- • Price volatility and supply disruptions in construction materials(p.39)
- • Dependence on third-party contractors and vulnerability to labour shortages(p.40)
- • COVID-19 pandemic resulted in operational disruptions and slowdown in sales(p.43)
- • Redevelopment projects have long gestation periods with delays and cost overruns common(p.49)
- • Regulatory risks including need for multiple approvals at various project stages(p.48)
- • High inventory levels with 25.04% average unsold units across ongoing projects(p.42)
- • Rising interest rates reducing customer affordability(p.59)
- • Complex and evolving regulatory environment(p.52)
- • Risk of permit and license delays or non-renewal(p.53)
- • Real estate sector cyclicality and downturn risk(p.59)
- • Concentration risk in MMR and surrounding regions(p.59)
- • Property tax and stamp duty increases(p.60)
- • Government land acquisition and eminent domain(p.66)
- • Natural disasters and construction site hazards(p.60)
- • Dependence on credit availability for customers(p.59)
- • Macroeconomic slowdown and inflation risks(p.65)
- • High land scarcity and prices in Mumbai limiting project acquisition(p.119)
- • Intense competition from large, consolidated developers with greater scale(p.163)
- • Regulatory dependency on RERA compliance and government approvals(p.117)
- • Reliance on construction material pricing and vendor availability(p.117)
- • Volatility in housing market driven by interest rate fluctuations(p.151)
- • Exposure to redevelopment project delays and stakeholder coordination challenges(p.169)
- • Intense competition from large pan-India developers and smaller local players(p.236)
- • Limited availability of land in developed micro-markets driving up acquisition costs(p.209)
- • Environmental concerns and ecosystem pressure from development(p.209)
- • High population density limiting green spaces and amenities(p.209)
- • Regulatory compliance requirements under RERA and other building codes(p.238)
- • Slum rehabilitation challenges including land acquisition and funding(p.209)
- • Dependency on favorable government policies including stamp duty reductions(p.189)
- • Real estate regulation compliance requirements(p.306)
- • Contingent liabilities and legal uncertainties(p.280)
- • Working capital intensity requiring significant inventory financing(p.291)
- • Volatility in construction material costs affecting margins(p.363)
- • Risks from labor strikes and industrial actions(p.363)
- • Macroeconomic fluctuations affecting real estate demand(p.362)
- • Interest rate and financing availability impact on customer demand(p.362)
- • Pandemic-related disruptions to construction and operations(p.363)
- • Competitive real estate market environment(p.393)
- • Regulatory and compliance risks in construction and real estate(p.378)
- • Tax regulatory changes and interpretations(p.379)
- • Economic cyclicality affecting real estate demand(p.393)
- • Litigation risks from multiple stakeholders(p.379)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Amit Mangilal Jain | Promoter | 80.17% | — |
| Amit Mangilal Jain | Promoter | 80.17% | — |
| Amit Mangilal Jain | Promoter | — | — |
| Amit Mangilal Jain | Promoter | 80.17% | — |
| Amit Mangilal Jain | Promoter | 99.99% | 82.99% |
| Mangilal Jain | Promoter Group | — | 8.50% |
| Sajjan Jain | Promoter Group | — | 8.50% |
| Amit Mangilal Jain | Promoter/Promoter Group | — | — |
Leadership
Amit Mangilal Jain · Managing Director and Chairman
Arpit Vikram Jain · Whole-Time Director
Samshet B Shetye · Chief Financial Officer
Sheetal Haresh Solani · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Arkade Developers IPO FAQs
What is the lot size of Arkade Developers IPO?
The minimum lot size of Arkade Developers IPO is 110 shares. One lot costs ₹14,080 at the cut-off price.
When does Arkade Developers IPO open and close?
Arkade Developers IPO opened for subscription on 16 Sep 2024 and closed on 19 Sep 2024.
What is the listing date of Arkade Developers IPO?
Arkade Developers IPO listed on 24 Sep 2024.