Arkade Developers makes strong stock market debut, shares list at 37% premium

Shares of Arkade Developers made a strong debut at the bourses on Tuesday as the real estate company kicked-off its maiden trading session at Rs 175.90 on NSE, a premium of 37.42 per cent over its issue price of Rs 128. Similarly, the stock was listed with a premium of 36.72 per cent at Rs 175 on BSE.
 

The listing of Arkade Developers has been below expectations. Ahead of its debut, Arkade Developers was commanding a premium (GMP) of Rs 60 per share, suggesting a listing pop of about 50 per cent for the investors on debut. However, its GMP in the unofficial market stood at Rs 60 apiece, when the bidding for the was closed.
 

Arkade Developers sold its IPO in the price band of Rs 121-128 per share with a lot size of 110 shares. The issue ran for bidding between September 16 and September 19. The Mumbai-based real estate company aimed to raise around Rs 410 crore from its primary offering, which was entirely a fresh share sale of 3,20,310,250 equity shares.
 

The issue was overall subscribed a bumper 106.83 times. Strong bidding was led by qualified institutional bidders (QIBs) and non-institutional investors (NIIs), whose quotas were booked a solid 163.16 times and 163.02 times, respectively. The allocation for retail investors and employees were subscribed 51.39 times and 50.49 times, during the four-day bidding process.

Arkade Developers is a real estate development company focused on developing high-end, sophisticated lifestyle residential developments in Mumbai, Maharashtra. The company's business can be divided into two segments: fresh construction of residential buildings on land acquired by the company and redevelopment of existing buildings.
 

Unistone Capital was the sole book running lead manager of the Arkade Developers IPO, while Bigshare Services served as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.