Arkade Developers IPO fully subscribed on first day; retail category bids highest; check GMP, other key details

Real estate company Arkade Developers, which opened for subscription on September 16, was fully subscribed on first day of bidding. The IPO was subscribed over 5.80 times on Monday.

Arkade Developers, a fast-growing real estate company, has established a significant foothold in the Mumbai market. As of July 31, 2023, the firm has developed 1.80 million square feet of residential space, including projects executed through partnership firms where Arkade maintains a controlling interest.

Arkade Developers IPO subscription status

The IPO was subscribed over 5.80 times on the first day of bidding on Monday. The Arkade Developers IPO received 13,79,45,830 bids against offered 2,37,75,719, according to data available on BSE.

The retail portion received the highest bid amongst all the categories, with 8.60 times subscription. Meanwhile, the portion reserved for Non-Institutional Investors (NIIs) was subscribed 7.90 times, while the Qualified Institutional Buyer (QIB) portion received a subscription of 0.24 times.

Arkade Developers IPO details

Arkade Developers IPO will remain open for subscription from September 16 to September 19. The company has fixed a price range of ₹121 to ₹128 per share for its initial public offering (IPO) valued at ₹410 crores.

The lot size for the issue is set at 65 equity shares, with subsequent bids required in multiples of 65 shares.

Around 50 per cent of the issue is reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and 35 per cent for retail investors. Additionally, employees have been allocated equity shares valued at up to ₹2 crores and will receive a discount of ₹5 per share.

Unistone Capital Pvt Ltd has been appointed as the book running lead manager for the Arkade Developers IPO, while Bigshare Services Pvt Ltd will serve as the registrar for the offering.

Arkade Developers IPO GMP

The Arkade Developers IPO's grey market premium (GMP) today is +86, indicating that the shares are trading at a ₹86 premium in the grey market, according to investorgain.com.

Based on the upper limit of the IPO price band and the current grey market premium, the estimated listing price for Arkade Developers shares is projected to be ₹208 each, reflecting a 67.19 per cent increase over the IPO price of ₹128.

'Grey market premium' indicates investors' readiness to pay more than the issue price.