2 Initial Public Offers ie IPOs will be open for listing on the stock market from tomorrow (September 16). These include Arcade Developers Limited and Northern Arc Capital Limited. Investors can bid for both the IPOs till September 19.
On September 24, the shares of these two companies will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Now let's know about the IPO of both the companies one by one.
1. Arcade Developers Limited
Arcade Developers Limited intends to raise a total of 410 crores through this IPO. For this the company is issuing 32,031,250 new shares worth 410 crores. Existing investors of the company are not selling a single share through Offer for Sale (OFS).
Retail investors can bid for a maximum of 1540 shares
Arcade Developers Limited has fixed the issue price band at ₹121-₹128. Retail investors can bid for a minimum of one lot i.e. 110 shares. If you apply for 1 lot as per IPO upper price band of 128, you have to invest 14,080.
While retail investors can apply for a maximum of 14 lots i.e. 1540 shares. For this investors have to invest 197,120 as per the upper price band.
Arcade Developers is a real estate development company
Arcade Developers Limited is a real estate development company primarily engaged in high-end lifestyle residential development in Maharashtra. By July 31, 2023, the company has built more than 18 lakh square feet of homes. This also includes the projects that they have done in collaboration with other companies. From 2017 to the first quarter of 2023, the company has launched more than 1040 homes and sold 792 homes in Mumbai and surrounding areas.
Arcade Developers Limited Premium 37.5% in gray market
Ahead of the IPO opening, the company's shares have touched a premium of 37.5% or ₹48 per share in the gray market. In such a scenario, according to the upper price band of ₹128, it may list at ₹176. Although this can only be estimated, the listing price of a share is different from the gray market price.
2. Northern Arch Capital Limited
Northern Arch Capital Ltd is looking to raise a total of ₹777 crore through this IPO. For this, the company is issuing 19,011,407 new shares worth ₹500 crore. Whereas, existing investors of the company are selling 10,532,320 shares worth ₹277 crore through Offer for Sale (OFS).
Retail investors can bid for a maximum of 741 shares
Northern Arch Capital Limited has fixed the issue price band at ₹249-₹263. Retail investors can bid for a minimum of one lot i.e. 57 shares. If you apply for 1 lot as per IPO upper price band of ₹128, you have to invest ₹14,991.
At the same time, retail investors can apply for a maximum of 13 lots i.e. 741 shares. For this, investors have to invest ₹194,883 as per the upper price band.
35% shares are reserved for retail investors in both the IPOs Both companies have reserved 75% of their respective IPOs for qualified institutional buyers (QIB). Apart from this, about 10% shares are reserved for retail investors and the remaining 15% shares are reserved for non-institutional investors (NIIs).
What is an IPO?
When a company issues its shares to the general public for the first time, it is called an initial public offering or IPO. A company needs money to grow its business. In such a situation, the company raises money by selling some shares to the public or by issuing new shares instead of borrowing from the market. For this the company brings IPO.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
