Arkade Developers share price made a decent stock market debut on Monday as the stock was listed at ₹175.90 apiece on the BSE, a premium of 37.42% to the issue price of ₹128 per share.
On NSE, Arkade Developers shares were listed with a 36.72% premium at ₹175 apiece.
Arkade Developers IPO listing was slightly below the street estimates as the equity shares of the company were trading at a strong premium in the grey market. Arkade Developers IPO GMP ahead of listing was ₹64 per share, signaling listing gains of around 50% for investors.
The initial public offering (IPO) of the real estate company Arkade Developers opened for public subscription on September 16 and closed on September 19. The IPO allotment was finalized on September 20, and the Arkade Developers IPO listing date was today. The equity shares of Arkade Developers Ltd are listed on both, BSE and NSE, w.e.f. September 24.
Arkade Developers IPO price band was set at ₹121 to ₹128 per share. At the upper-end of the price band, the company raised ₹410 crore from the book-built issue which was entirely a fresh issue of 3.2 crore equity shares.
Unistone Capital Pvt Ltd is the book running lead manager of the Arkade Developers IPO, while Bigshare Services Pvt Ltd is the IPO registrar.
Arkade Developers IPO received strong subscription and was heavily oversubscribed. The issue was booked 106.83 times in total. It was subscribed 50.49 times in the retail category, 163.16 times in the Qualified Institutional Buyers (QIB) category, and 163.02 times in the Non Institutional Investors (NII) category.
Arkade Developers Ltd is a real estate development company with high-end lifestyle residential projects in Mumbai, Maharashtra. The company proposes to utilize the net issue proceeds for funding part of the costs to be incurred in developing the ongoing projects and acquisition of yet-to-be-identified land for real estate projects and general corporate purposes.
Expecting a strong Arkade Developer shares listing, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The public issue was small in size, which led to higher subscription status. However, getting over 100 times subscription is something that one can’t ignore.”
However, Kejriwal said that one should book profit and exit after listing as there can be sharp downside post-listing, as we witnessed in recently listed stocks.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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