About the Company:
Arkade Developers Ltd is a real estate development Company concentrating on the development of premium aspirational lifestyle residential premises in Mumbai, Maharashtra, India’s commercial capital.
Company’s business can broadly be classified into two categories: (i) development / construction of residential premises on land acquired by our Company (New Projects) and (ii) redevelopment
of existing premises (Redevelopment Projects).
As on June 30, 2024, Company has developed 2.20 million square feet of residential property (including through partnership entities in which we hold the majority stake).
Company is engaged in the development of new projects and redevelopment of existing premises, and between 2017 and Q1 2024, we have launched 1,220 residential units and sold 1,045 residential units in different markets in MMR, Maharashtra.
Company has established a successful track record of completing our projects on time, and from CY 2003 to March 2024 and have successfully completed redevelopment of 10 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai (through a partnership firm in which we hold the majority stake) with a combined constructed area of 1,000,000 square feet (approx.).
Company’s track record has established us as one of the major player of redevelopment in the Mumbai western suburbs.
Set out below is Company’s average per unit price point:
Projects undertaken by the Company on a Stand-alone basis:
Company’s Upcoming Projects:
As of June 30, 2024, Company’s Upcoming Projects comprise 6 projects in MMR, Maharashtra i.e., 1 New Project, viz., Arkade Rare located in Bhandup, i.e. Copper Rollers Private Limited, and 5 Redevelopment Projects i.e.,
1 project Arkade Vistas and Arkade Views located in Goregaon East,
2 projects viz., Municipal Employees Arunachal Co-operative Housing Society and Maheshwar Niwas Co-operative Housing Society located in Santacruz West,
1 project viz., Laxmi Ramana Co-operative Housing Society located in Goregaon West.
1 project Nutan Ayojan Nagar Co-operative Housing Society located in Malad West, respectively.
Company’s Ongoing and Upcoming Projects:
Management Team:
- Mr. Amit Mangilal Jain (Designation: Managing Director and Chairman)
- Mr. Arpit Vikram Jain (Designation: Whole Time Director)
Objectives of the Issue:
Fresh Issue: (Rs.410 cr)
- Funding a part of the costs to be incurred in the development of our Ongoing Projects (viz. Arkade Nest, Prachi CHSL and C-Unit) (Funding Development Expenses).
- Funding acquisition of yet-to-be identified land for real estate projects and general corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding Development Expenses | 250 cr |
Positives for the Company:
Strategic location of projects in micro-markets of MMR, Maharashtra.
- Company’s operations are strategically located in Mumbai, one of the biggest and most expensive real estate markets in India.
- Since CY 2021 to Q1 2024, MMR, Maharashtra has contributed the highest annual sales share of residential units across the top 7 cities in India, ranging from 29% to 33%. On average, the sales in MMR, Maharashtra accounted for 31% of the total residential unit absorption during this time frame.
- Further, the residential market in MMR, Maharashtra stands out as the most expensive, amongst the top 7 cities in India.
Company is a leading player and amongst top 10 developers in terms of supply in select micro-markets of, and an established developer in, MMR, Maharashtra.
- Company is an established developer of new and redevelopments projects in MMR, Maharashtra which is India’s commercial capital and also one of the highest density cities in the country. Additionally, Mumbai is the biggest and most expensive real estate market in India.
- Historically, a significant proportion of our projects have been in the western suburbs of MMR, we have also developed projects in the eastern suburbs of Mumbai, Maharashtra and in south Mumbai.
- Company is amongst the top-10 developers in the Borivali West micro-market and have a 2% share in the total supply and 6% share in the total absorption of cumulatively from 2022 to Q1 2024.
Moving up the value chain to Premium / Luxury residential premises.
- Company’s primary focus has always been to deliver value luxury affordable residential premises to our buyers in high-density regions of MMR, Maharashtra while placing a premium on construction quality and catering to aspirational life-style choices.
- Company has, generally, undertaken projects with 1 acre and upward of land, which allows us to offer aspirational life-style amenities and choices to our customers.
- Company is further proposing to augment our value proposition and move up the value chain by undertaking projects that are developed over a larger land area which will enable to us to inter alia construct more premium properties with greater amenities and facilities and opportunities for recreational activities.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 237.1 | 224.0 | 635.7 |
| Net Profit | 50.7 | 50.8 | 123.0 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Arkade Developers Ltd | 10 | 8.08 | 15.84 | 46.90% | 21.28 |
| Keystone Realtors Ltd | 10 | 9.82 | 74.85 | 6.40% | 157.81 |
| Godrej Properties Ltd | 5 | 26.08 | 111.53 | 7.76% | 359.40 |
| Macrotech Developers Ltd | 10 | 15.99 | 78.46 | 10.32% | 180.80 |
| Suraj Estate Developers Ltd | 5 | 19.39 | 40.92 | 22.97% | 148.30 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 16th September 2024 |
| Issue Closes on | 19th September 2024 |
| Issue Price | Rs.121-128 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35 % |
| Minimum Lot | 110 Shares |
| Minimum Investment | Rs. 14,080 |
| Issue Constitutes | 17.25 % |
| Issue Size | Rs.410 cr ($ 49 million ) |
| Market Cap | Rs. 2377 cr ($ 282 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 3,20,31,250 (Rs.410 cr) |
| Equity Shares Prior to the Issue | 15,36,26,016 |
| Equity Shares after the Issue | 18,56,57,266 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 8.08 | 15.84 | 46.90% | 21.28 | 0.21 |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Arkade Developers Ltd is a prominent real estate development company based in Mumbai, Maharashtra, India’s commercial hub. The company specializes in premium, aspirational lifestyle residential projects. Arkade’s business is divided into two main areas: (i) new project development on land they acquire, and (ii) redevelopment of existing properties. The company’s strong track record has solidified its position as a major player in redevelopment, particularly in the western suburbs of Mumbai.
As of June 30, 2024, Arkade Developers Ltd has completed 2.20 million square feet of residential development, including through partnerships where they hold a majority stake. Between 2017 and Q1 2024, the company launched 1,220 residential units, of which 1,045 were sold in various markets across the Mumbai Metropolitan Region (MMR). Arkade focuses on strategic locations within these micro-markets, making it one of the top 10 developers in terms of supply in select areas. Investors can apply in this IPO for moderate listing gains. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 20th September 2024 |
| Initiation of Refunds | on or Before 23rd September 2024 |
| Credit of Equity Shares: | on or Before 23rd September 2024 |
| Listing Date: | on or Before 24th September 2024 |
| Company Contact Info: |
|---|
| Arkade Developers Ltd Arkade House, Opp. Bhoomi Arkade, Near Children’s Academy, A S Marg, Ashok Nagar, Kandivali (East), Mumbai – 400101, Maharashtra, India. Tel: +91 (22) 28874742 Email: cs@arkade.in Website: www.arkade.in |
| Registrar to the Issue: |
|---|
| Bigshare Services Private Limited Office No. S6 -2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri East, Mumbai – 400093, Maharashtra, India Tel: +91-22-62638200 E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
