Investors can bid for a minimum of 110 shares and in multiples thereof.
Real estate developer Arcade Developers Ltd on Tuesday said it has fixed a price band of Rs 121 to Rs 128 per share for its Rs 410-crore initial public offering (IPO). The company announced that the initial share sale will open for public subscription on September 16 and conclude on September 19, and bidding for anchor investors will open for a single day on September 13, PTI reported. The initial public offering is entirely through a fresh issue of equity shares aggregating Rs 410 crore, with no offer for sale (OFS) component.
Company valuation is over Rs 2,300 crore
According to the news, the brokerage house has valued the company at over Rs 2,300 crore after the issue. The amount raised from the issue will be used for the development of the company’s ongoing and upcoming projects and for the acquisition of future real estate projects and for general corporate purposes. Arcade Developers is a fast-growing real estate development company with a significant presence in Mumbai. As of July 31, 2023, it has developed 1. 80 million sq ft of residential property, with properties developed through partnership entities in which Arcade has a majority stake.
35% reserved for retail investors
Between Q1 2017 and Q1 2023, the company launched 1,040 residential units and sold 792 residential units across various markets in the Mumbai Metropolitan Region (MMR) in Maharashtra. Arcade Developers’ revenue in FY 2023, FY 2022 and FY 2021 stood at Rs 224. 01 crore, Rs 237. 18 crore and Rs 113. 18 crore, respectively. Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors, the company said.
Investors can bid in a minimum lot size of 110 shares and in multiples thereof. Unistone Capital is the sole book-running lead manager (BRLM) for the issue. The equity shares of the company are expected to be listed on BSE and NSE on September 24.
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