About Arkade Developers
Arkade Developers is a rapidly growing real estate company with a strong presence in Mumbai, Maharashtra. The company focuses on developing premium, aspirational lifestyle residential properties in Mumbai, India's commercial capital. As of July 31, 2023, Arkade Developers has developed 1.80 million square feet of residential property, including projects through majority-owned partnership entities.
Over the past two decades, Arkade Developers has completed 27 projects, including those by its promoter through proprietorship or joint development arrangements, totaling over 4 million square feet and serving around 4,000 customers.
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Ongoing Projects
Arkade Developers is currently working on five projects in prime locations across the western and eastern suburbs of Mumbai, Maharashtra, all at various development stages and expected to be completed within the next 3 to 5 years.
The company's upcoming projects include two redevelopment ventures in Vile Parle East and Malad West, MMR, Maharashtra. Additionally, Arkade has received letters of intent for four more redevelopment projects and has been confirmed as the preferred developer for another project in the MMR.
Issue Size of the upcoming IPO
Arkade Developers, a Mumbai-based real estate company, has received Sebi's approval for its proposed ₹430 crore IPO. The draft prospectus was filed in September last year. The price band and key dates will be announced later. The IPO will be a fresh issue of equity shares with no Offer for Sale component.
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Unistone Capital is the merchant banker for the IPO, and Bigshare Services is the registrar. The net proceeds will be used for developing ongoing and upcoming projects, funding future real estate acquisitions, and general corporate purposes.
Strengths
- Projects are strategically located in micro-markets of MMR, Maharashtra with high entry barriers.
- Leading developer in select micro-markets and an established presence in the MMR, Maharashtra.
- Experienced promoter and a strong, technically proficient management team.
- Expanding into the eastern region of MMR, Maharashtra and entering the Thane suburbs.
- Advancing to premium and luxury residential premises.
Financials of IPO-bound Arkade Developers
For the financial year ending March 31, 2023, Arkade Developers reported a total income of ₹2,240.13 million, compared to ₹2,371.82 million in 2022 and ₹1,131.85 million in 2021. The profit for the year stood at ₹506.61 million in 2023, slightly down from ₹508.44 million in 2022 but significantly higher than ₹217.18 million in 2021.
The Adjustable Return on Capital Employed (ROCE) for 2023 was 24.30%, a decrease from the 46.17% recorded in 2022 and 30.16% in 2021. This indicates a reduction in the efficiency with which the company utilized its capital over the years.
The Interest Coverage Ratio, which measures the company's ability to meet its interest obligations, improved significantly to 53.12 in 2023, from 16.15 in 2022 and 23.41 in 2021. This suggests a stronger financial position and better capability to cover interest expenses in 2023.
The Current Ratio, which assesses the company’s ability to pay short-term liabilities with short-term assets, also showed improvement. It was 1.92 in 2023, up from 1.60 in 2022 and 1.33 in 2021, indicating better liquidity and financial health.
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