Arkade Developers shares gain 37% on listing: Should you book profit or hold?

Arkade Developers stock opened at Rs 175 on the Bombay Stock Exchange, a 36.72% jump from its issue price of Rs 128. On the National Stock Exchange, the shares listed at Rs 175.90, reflecting a similar premium of 37.42%.

In Short

• Arkade Developers debuts at 37% premium over IPO issue price
• Grey market suggested higher listing gains, performance still strong
• Experts recommend partial profit booking after successful stock listing

Arkade Developers made a strong debut on Dalal Street today, with its shares listing at a premium of around 37% over the IPO issue price.

The stock opened at Rs 175 on the Bombay Stock Exchange (BSE), a 36.72% jump from its issue price of Rs 128. On the National Stock Exchange (NSE), the shares listed at Rs 175.90, reflecting a similar premium of 37.42%.

This strong opening, however, fell short of some market expectations.

Prior to its debut, Arkade Developers’ shares were trading at a grey market premium (GMP) of Rs 60 per share, suggesting potential listing gains of up to 50% for investors. Despite this, the company's robust performance on listing day indicates solid investor interest.

The IPO, which was offered at a price band of Rs 121–128 per share, saw overwhelming demand during its subscription period from September 16 to 19. Arkade Developers aimed to raise Rs 410 crore through this offering, which involved the fresh issuance of over 3.2 crore equity shares.

The IPO was oversubscribed by an impressive 113.49 times, highlighting strong interest from various investor categories. The retail portion was subscribed 53.78 times, while the Qualified Institutional Buyers (QIB) and Non-Institutional Investors (NII) categories were subscribed 172.60 times and 172.22 times, respectively.

Hold or book profits?

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., commented on the listing, saying, “Arkade Developers made an impressive entry into the stock market, listing at Rs 176 per share, which reflects a 37% premium over the issue price. This robust performance is a testament to the strong investor interest seen during the IPO’s oversubscription of 113 times.”

Nyati also highlighted the company’s strong position in Mumbai’s real estate market. "Arkade Developers is well-positioned with its focus on high-end, sophisticated residential developments in Mumbai. The company’s financial stability and growth potential have clearly struck a chord with investors."

For investors, experts recommend a cautious approach. “Investors may consider booking partial profits at this level given the strong listing. However, those who believe in the long-term prospects of the company may hold onto their shares with a stop-loss at the issue price of Rs 128,” Nyati added.

Arkade Developers, a well-established player in the real estate sector, is known for its upscale residential projects in Mumbai. With this successful listing, the company has further solidified its position in the market, and its future expansion plans remain promising.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)