Arkade Developers Soars on Stock Market Debut: Strong Listing Performance

Arkade Developers made a notable entry into the stock market on Monday. The company’s shares were listed at Rs. 175.90 on the Bombay Stock Exchange (BSE), which is a 37.42% increase from its issue price of Rs. 128 per share.

Listing Performance

On the National Stock Exchange (NSE), Arkade Developers shares started at Rs. 175, reflecting a 36.72% premium. This listing was slightly lower than expected, as the shares were trading at a much higher rate in the grey market before the debut. The Grey Market Premium (GMP) before the listing was Rs. 64 per share, indicating potential gains of around 50% for investors.

IPO Details

The initial public offering (IPO) for Arkade Developers was open for public subscription from September 16 to September 19. The allotment of shares was finalized on September 20, with the official listing occurring today, September 24. The shares are now available on both BSE and NSE.

The IPO price range was set between Rs. 121 and Rs. 128 per share, allowing the company to raise Rs. 410 crore by issuing 3.2 crore equity shares.

Strong Subscription Numbers

The IPO received overwhelming interest, being oversubscribed 106.83 times overall. It was subscribed 50.49 times in the retail category, and even more impressively, 163.16 times by Qualified Institutional Buyers (QIBs) and 163.02 times by Non-Institutional Investors (NIIs).

Company Background and Future Plans

Arkade Developers is a real estate development firm known for its high-end residential projects in Mumbai, Maharashtra. The funds raised from the IPO will be used to cover costs for ongoing projects, acquire new land for development, and for general corporate purposes.

Expert Insights

Arun Kejriwal, Founder of Kejriwal Research and Investment Services, expressed optimism about the listing. He noted that the small size of the public issue contributed to the high level of subscription. However, he advised investors to consider booking profits after the listing, as there could be significant price drops afterward, similar to trends seen with recently listed stocks.

Also read: Over 250 Stocks Hit 52-Week Highs as Sensex and Nifty Set New Records, Investors Gain Rs. 6 Lakh Crore

Conclusion

Overall, Arkade Developers' debut in the stock market has garnered significant attention, and investors will be watching closely to see how the stock performs in the coming days.