Property developer Arkade Developers Limited has submitted its draft Red Herring Prospectus (DRHP) to market regulator Sebi for a boost ₹430 crore through an initial public offering (IPO). The Company intends to use the net proceeds for the development of its current and upcoming projects, as well as to fund the acquisition of future real estate projects and general corporate purposes.
According to DRHP, the company’s first public offering will be solely through a new issue of shares without an offer-for-sale (OFS) component.
Arkade Developers focuses on the development of high-quality residential properties with a sophisticated lifestyle and has a significant presence in Mumbai, Maharashtra. The Company has developed (including through partnerships in which Arkade has a controlling interest) 1.80 million square feet of residential properties as of July 31, 2023.
From 2017 to the quarter ended June 2023, Arkade Developers commissioned 1,040 residential units and sold 792 residential units in various markets in MMR, Maharashtra. The company’s ongoing projects include gated communities such as Arkade Nest, Arkade Crown and Arkade Aspire, Arkade Prime and Arkade Aura.
Arkade Developers revenue saw a significant increase ₹113 crore in 2021 ₹237 crore in fiscal 2022. Revenues declined marginally during the fiscal year ended March 2023, standing at ₹224 crores. Operating revenue grew at a CAGR of 26.69% between 2021 and 2023.
“Unistone Capital is the sole Book Running Lead Manager (BRLM) for the offering. “The company’s shares will be listed on the BSE and NSE,” says a press release.
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