Mumbai based Arkade Group is planning an IPO to raise about Rs 600 crore in a fresh issue of shares, Chairman and Managing Director Amit Jain said. The IPO with a 20 percent dilution of promoter equity will value the company at around Rs 3,000 crore. The total funds to be raised will also include a pre- IPO placement to some strategic investors.
The company which is focused on residential realty recently invested Rs 300 crore for four new projects to be launched shortly. With a total development area of Rs 14.8 lakh sq ft these projects have the potential to generate revenue of Rs 1,525 crore. It is currently executing projects of Rs 12 lakhs sq ft from which it expects to generate revenue of Rs 1,200 crore.
IPO expected to be launched around March 2024 will be funding its next growth phase which will be gradual and through the organic route. It houses are priced across the spectrum from affordable to premium depending on the locality.
The company has been in existence over three decades and has delivered 25 projects and 4000 units with an area of over 40 lakh sq ft. The company has ongoing projects in Mumbai’s suburbs of Santacruz, Andheri, Malad and Borivali. The upcoming projects will be in Santacruz, Vile Parle and Mulund. The company is expecting to end with sales worth Rs 500 crore during the current fiscal and double that in the next fiscal.
Arkade Group has also received letters of intent from two housing societies for development projects both in Mumbai‘s western suburbs of Malad and Goregaon. Jain said that redevelopment would be one of the company’s focus areas with an expected internal rate of return of 20 percent anualised. However he plans to keep away from slum redevelopment projects as they tend to take a longer time and are often prone to run into delays.
