Arkade Group gears up to launch its IPO in December 2023:

In a strategic move, Mumbai's Arkade Group is navigating the financial landscape, unveiling a plan to present a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) by August 31. With sights set on a transformative debut, the real estate powerhouse is poised for an initial public offering (IPO) in December 2023, aimed at amassing an impressive capital of approximately 600 crores.

Envisaging an approximate valuation of Rs 4,000 crore, the IPO will encompass a 15 percent reduction in promoter equity. Arkade Group is bustling with activity, overseeing five ongoing projects across micro-markets such as Borivali, Goregaon, Santacruz, Andheri, and Mulund. The company's focal point remains residential initiatives and the revitalization of aging structures in Mumbai's eastern and western suburbs.

Company official have indicated that after a prosperous IPO, their roadmap includes venturing into the domain of commercial real estate. While their ongoing residential projects already encompass commercial and retail spaces, the pivotal transformation entails embarking on a commercial property leasing model, diverting from conventional direct property sales. This tactical evolution holds the promise of a consistent and enduring rental income flow over the course of time.

The company's sales momentum has been promising with an impressive 50 percent surge in project sales from one quarter to the next. This remarkable expansion is credited to the upgraded offerings introduced this year, setting the stage for an outstanding sales performance in this fiscal year. Regarding their project approach, the company appears to have redirected their attention from creating 1 BHK apartments, a trend that was prevalent five years ago. Among their ongoing projects, they have exclusively introduced 1 BHK apartment in Andheri, while the remaining developments consist of 2 BHK apartments or larger configurations.

An initial public offering (IPO) is the procedure of issuing shares of a private company to the public in a new stock release. To conduct an IPO, firms must meet criteria established by exchanges and the Securities and Exchange Commission (SEC). This route enables companies to raise capital by selling shares via the primary market. Enterprises engage investment banks to handle tasks such as marketing, assessing demand, setting IPO terms, and more. An IPO can also serve as an exit strategy for the firm's founders and initial investors, allowing them to realize full gains from their private investments.

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Arkade Group gears up to launch its IPO in December 2023:

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