Arkade Developers Limited, leading real-estate developer in Mumbai, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The Company’s initial public offering comprises a fresh issue of Rs 430 crore.
The company proposes to utilize the net proceeds towards development of their ongoing Projects (viz. Arkade Nest), and their Upcoming Projects; and funding acquisition of future real estate projects and general corporate purposes.
Arkade Developers is a fast growing real estate development Company with a significant presence in Mumbai, Maharashtra. The Company operations are concentrated on the development of premium aspirational lifestyle residential premises in Mumbai, Maharashtra, India’s commercial capital. As of July 31, 2023, they have developed 1.80 million square feet of residential property (including through partnership entities in which Arkade hold the majority stake). They are engaged in the development of new projects and redevelopment of existing premises, and between 2017 and Q1 2023, have launched 1,040 residential units and sold 792 residential units in different markets in the MMR, Maharashtra. In particular, they have established a successful track record of completing their projects on time, and from CY 2003 to March 2023, have successfully completed redevelopment of 9 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai (through a partnership firm in which Arkade hold the majority stake) with a combined constructed area of 6,48,000 square feet. This track record has established Arkade as one of the major player of redevelopment in the Mumbai western suburbs. (Source: Anarock Report)
While company’s initial projects were stand-alone residential buildings, their current portfolio of ongoing projects includes gated communities such as Arkade Nest, Arkade Crown and Arkade Aspire, Arkade Prime and Arkade Aura.
Arkade Developer’s revenue in Fiscal 2023, Fiscal 2022 and Fiscal 2021 are ₹ 2,240.13 million, ₹ 2,371.82 million, and ₹ 1,131.85 million, respectively and revenue from operations has grown at a CAGR of 26.69% between Fiscal 2021 and Fiscal 2023. All of their projects have been, and are, in the MMR, Maharashtra.
Unistone Capital is the sole Book Running Lead Manager (BRLM) to the issue. The equity shares of the company will be listed on BSE and NSE.