Arkade Developers IPO analysis - Apply or avoid? | Vibhor Varshney #ipogmp

Summary

The video discusses the analysis of several new IPOs after a previous batch cleared, focusing on market stability and opportunities for retail investors. The host, a SEBI-registered analyst, provides insights on Arkade Developers' IPO, highlighting the company's real estate focus in Mumbai. He compares this IPO with others, examines financial details, and shares projections on oversubscription and potential listing gains. The video emphasizes the importance of understanding company assets, margins, and debt before investing, and advises using multiple accounts to maximize application chances.

Takeaways

• 😀 Three new IPOs have arrived after the previous four IPOs were concluded, indicating market stability.
• 📈 Both FIIs and retail investors are actively buying, driving market activity.
• 🏢 Arcade Developers, a real estate-focused company in Mumbai and Maharashtra, is launching an IPO.
• 🛠️ The company's main business involves acquiring land, constructing residential buildings, and redeveloping older properties.
• 💰 Arcade Developers aims to raise ₹410 crore entirely through a fresh issue.
• 📅 Key IPO dates: Opens on September 16, closes on September 19, allotment on September 20, refunds by September 23, and listing on September 24.
• 💵 The price band is set between ₹121 to ₹128 per share, and applying at the upper band of ₹128 is recommended.
• 🏗️ Over the last two decades, the company completed 28 projects, with strong growth in assets and margins.
• 📊 The company has consistent profit margins of around 19%-20%, and its financials indicate a strong potential for growth.
• 🔥 Expected listing gains are projected between ₹30 to ₹50 per share, with an oversubscription of 50 times or more.

Q & A

What is the main topic of the video transcript?

The main topic is the analysis and comparison of several IPOs, including the latest IPO of Arcade Developers, and whether or not to apply for them based on various financial metrics and market conditions.

Why does the speaker suggest applying for the Arcade Developers IPO?

The speaker suggests applying because Arcade Developers has strong financials, good margins (19-20%), and is growing without heavy debt, which makes it a promising investment opportunity in the real estate sector.

What is the primary focus area of Arcade Developers' business?

Arcade Developers primarily focuses on high-end residential development in Mumbai, Maharashtra. Their business includes both new developments and the redevelopment of existing buildings.

What are the key financial highlights of Arcade Developers mentioned in the transcript?

Arcade Developers has completed 28 projects, sold 1,000 residential units, and developed 2.2 million square feet of residential projects. Their revenues grew significantly, with a threefold increase from 224 crore to 630 crore. Profit margins remained strong at 19-20%.

What are some concerns or risks associated with Arcade Developers?

One key concern is that the company is geographically focused only on Mumbai, which could pose risks if there are political issues or market fluctuations in the area. Additionally, the promoter's involvement in multiple ventures, including joint developments, may create distractions.

What is the estimated listing gain for Arcade Developers according to the speaker?

The speaker estimates that the listing gain could range between 30-50% based on the expected oversubscription and market demand.

How does the speaker expect the Arcade Developers IPO to be oversubscribed?

The speaker expects the Arcade Developers IPO to be oversubscribed by 50 times or more, due to the release of blocked funds from previous IPOs and the company's strong financials.

What is the price band for Arcade Developers' IPO?

The price band for Arcade Developers' IPO is set between ₹121 to ₹128 per share, with a lot size of 110 shares.

What are the key dates associated with the Arcade Developers IPO?

The IPO opens on September 16, 2024, closes on September 19, with allotment on September 20, refunds on September 23, and listing on September 24.

What is the speaker's view on applying multiple times for the IPO using different accounts?

The speaker advises against applying multiple times using the same PAN card, as it would lead to rejection of all applications. However, they suggest applying through multiple accounts using different PAN cards (e.g., family members) to increase chances.