Arkade Developers Limited IPO

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They are a leading real estate development company focused on creating premium, aspirational lifestyle residential properties in Mumbai, Maharashtra, which is recognized as India’s commercial capital. Their business activities can be categorized into two primary segments:
i. New Projects: This involves the development and construction of residential premises on land acquired by their company.
ii. Redevelopment Projects: This includes the redevelopment of existing premises to modern standards.

Their reputation is built on a consistent track record of completing projects on time. From 2003 to March 2024, they have completed 11 redevelopment projects in Mumbai, which include 10 in the western suburbs and one in south-central Mumbai. These projects encompass a combined constructed area of approximately 1 million square feet. This successful track record has established them as one of the major players in the redevelopment sector within Mumbai’s western suburbs, a status corroborated by the Anarock Report.

Strategic Location and Market Position

Their operations are strategically concentrated in Mumbai, one of the largest and most expensive real estate markets in India. Between 2021 and the first quarter of 2024, MMR, Maharashtra has consistently contributed the highest annual sales share of residential units among India’s top seven cities, accounting for 29% to 33% of the total sales. On average, MMR has contributed 31% of the total residential unit absorption during this period.

Moreover, the MMR residential market stands out as the most expensive among the top seven cities in India, with a capital value of ₹14,600 per square foot as of Q1 2024, as noted in the Anarock Report. Within MMR, their operations are significantly concentrated in the western suburbs, and since 2017, they have ranked among the top 10 developers in terms of supply in key micro-markets such as Borivali West, Goregaon East, and Santacruz West.

Their business model is customer-centric, emphasizing the development of high-end, aesthetically designed, and sustainable residential premises equipped with lifestyle amenities and facilities in high-density areas of MMR. They have consistently adhered to project delivery timelines, a critical factor in building and maintaining their brand reputation. This commitment to quality and timeliness has been pivotal in establishing and reinforcing their position as a trusted developer in Mumbai’s competitive real estate market.

Objects of the Arkade Developers Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects: i. Funding is part of the costs to be incurred in developing the Ongoing Projects (viz. Arkade Nest, Prachi CHSL, and C-Unit) (Funding Development Expenses); and ii. Funding acquisition of yet-to-be-identified land for real estate projects and general corporate purposes.
DRHP of Arkade Developers Limited IPO
RHP of Arkade Developers Limited IPO

Arkade Developers Limited IPO Details:

Open Date: Sep 16 2024
Close Date: Sep 19 2024
Total Shares: 32,031,250
Face Value: ₹ 10 Per Equity Share
Issue Size: 410.00 Cr.
Lot Size: 110 Shares
Issue Price: ₹ 121 - 128 Per Equity Share
Listing At: NSE,BSE
Listing Date: Sep 24 2024

Promoters And Management:

Amit Mangilal Jain is the Promoter and the Managing Director and Chairman of the Company. He has been associated with the Company as a director since December 27, 1995. He holds a bachelors’ of science degree from the University of Mumbai. He is involved in the formulation of corporate strategy and implementation of the strategies. He is responsible for the planning and overall execution and management of the Company. He also looks after public relations and brand image of the Company. He is also a member of National Real Estate Development Council since 2019. Arpit Vikram Jain is the Whole Time Director of the Company since June 1, 2023. He has been associated with the Company as a director since February 26, 2016. He holds a bachelors’ of commerce degree from the University of Mumbai. He has passed the final exam of Chartered Accountant. He has been heading the Accounts, Finance, Taxation, Sales, Marketing, CRM, HR and Administration departments of the Company. Ketu Amit Jain aged 47 is a Non-Executive Non-Independent Director of the Company. She appeared for Second Year Bachelors of Commerce at K.P.B Hinduja College of Commerce, University of Mumbai. She served as a Director of the Company from September 1, 2010 till February 5, 2018. She then joined the Company as a General Manager - Marketing from November 1, 2021 till November 28, 2023 and was involved in formulation of marketing strategies for the Company. She was subsequently appointed as a Non-Executive Non-Independent Director of the Company from November 29, 2023.

Financials of Arkade Developers Limited IPO:

Particulars ( In Crores )
2022
2023
2024
Revenue from Operations 229 220 635
Other Income 8 4 1
Total Revenue 237 224 636
Cost of construction 255 334 416
Change in Inventories -95 -202 13
Employees Benefit Expenses 8 17 17
Other Expenses 7 10 22
EBITDA 63 64 168
OPM (%) 26.43% 28.64% 26.49%
Depreciation & Amortisation 0.1 0.3 1
EBIT 63 64 167
Finance Cost 4 1 3
PBT 66 67 165
Tax 15 16 42
PAT 51 51 123
NPM (%) 21.44% 22.66% 19.32%
No.of Shares 18.56 18.56 18.56
EPS 2.73 2.73 6.61

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Arkade Developers Limited 635 123 6.61 19.4 128 2,376
Keystone Realtors Limited 2,222 111 9.85 99.2 711 8,942
Godrej Properties Limited 3,036 747 26.08 70.5 2,838 78,880
Macrotech Developers Limited 10,316 1,554 15.58 65.8 1,276 1,26,783
Suraj Estate Developers Limited 412 67 15.22 40.7 760 3,370
* All the data is as per FY24.

Lead Manager of Arkade Developers Limited IPO:

  1. Unistone Capital Pvt Ltd

Registrar of Arkade Developers Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Arkade Developers Limited Arkade House, Opp. Bhoomi Arkade, Near Children�s Academy, A S Marg, Ashok Nagar, Kandivali (East), Mumbai - 400101 Phone: +91 22 2887474 Email: cs@arkade.in Website: http://www.arkade.in/

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