Today is the third day of investment in the Initial Public Offer (IPO) of Arcade Developers Limited and Northern Arc Capital Limited. In two days, the IPO of Arcade Developers was subscribed a total of 17.41 times. The issue was subscribed 21.40 times in the retail category, 0.47 times in qualified institutional buyers (QIB) and 29.99 times in the non-institutional investors (NII) category.
At the same time, Northern Arc Capital's IPO was subscribed a total of 10.61 times in two days. The issue was subscribed 11.32 times in the retail category, 0.20 times in qualified institutional buyers (QIB) and 22.55 times in the NII category. The shares of both the companies will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on September 24. Let us now know about the IPOs of both the companies one by one.
1. Arcade Developers Limited
Arcade Developers Limited wants to raise a total of ₹410 crore through this IPO. For this, the company is issuing 32,031,250 fresh shares worth the entire ₹410 crore. The existing investors of the company are not selling a single share through the Offer for Sale (OFS).
Retail investors can bid for maximum 1540 shares
Arcade Developers Limited has fixed the price band of this issue 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 the upper price band of the IPO of ₹128, then you will have to invest ₹14,080 for it.
At the same time, retail investors can apply for a maximum of 14 lots i.e. 1540 shares. For this, investors will have to invest ₹ 197,120 according to the upper price band.
Arcade Developers is a real estate development company
Arcade Developers Limited is a real estate development company that mainly develops sophisticated lifestyle residential developments in Maharashtra. As of July 31, 2023, the company has built more than 18 lakh square feet of homes. This also includes projects that they have built 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 Ltd. Premium 67.19% in Grey Market
Before listing, the company's stock has reached a premium of 67.19% i.e. ₹ 86 per share in the grey market. In such a situation, according to the upper price band of ₹ 128, its listing can happen at ₹ 214. However, this can only be estimated, the price of the listing of the stock is different from the price of the grey market.
2. Northern Arc Capital Limited
Northern Arc Capital Limited wants to raise a total of ₹ 777 crore through this IPO. For this, the company is issuing 19,011,407 fresh shares worth ₹ 500 crore. Whereas, the 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 Arc Capital Limited has fixed the price band of this issue 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 the IPO's upper price band of ₹128, then you will have to invest ₹14,991 for it.
At the same time, retail investors can apply for a maximum of 13 lots i.e. 741 shares. For this, investors will have to invest ₹ 194,883 according to the upper price band.
Northern Arc Capital Limited's premium in the grey market is 67.68%
Before listing, the company's stock has reached a premium of 67.68% i.e. ₹ 178 per share in the grey market. In such a situation, according to the upper price band of ₹ 263, its listing can happen at ₹ 441. However, this can only be estimated, the listing price of the stock is different from the price of the grey market.
35% share in both IPOs is reserved for retail investors
Both the companies have reserved 75% of their IPO for qualified institutional buyers (QIB). Apart from this, about 10% is reserved for retail investors and the remaining 15% is reserved for non-institutional investors (NII).
What is IPO?
When a company issues its shares to the general public for the first time, it is called Initial Public Offering or IPO. The company needs money to expand its business. In such a situation, instead of taking a loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings IPO.
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