Arkade Developers IPO Full Review | Arkade Developers IPO GMP | Arkade Developers IPO Apply Or Not??

Summary

The video discusses Rak Developers Limited's IPO, which is open from September 16th to 19th. The IPO is oversubscribed in the first day itself, indicating strong demand. The company, established in 1986, is a real estate development firm with a good reputation in Mumbai's real estate sector. The Indian real estate market is expected to grow rapidly, reaching a trillion-dollar market by 2030, supported by government initiatives. The IPO is priced between ₹120 and ₹128 per share, with a total issue size of ₹10 crore. The funds will be used for ongoing and new projects. The company's financials show impressive growth in revenue and profit after tax in the financial year 2024. The video concludes with a positive opinion on the IPO, considering the company's performance and industry potential.

Takeaways

• 📅 The IPO of RAKE Developers Limited is open for application from September 16 to September 19.
• 📈 On the first day, the IPO was oversubscribed in the retail category, indicating high demand.
• 💰 The current grey market premium (GMP) is around ₹80, suggesting a potential listing gain of approximately ₹6,200 per lot.
• 🏢 RAKE Developers is a real estate development company founded in 1986, known for construction and redevelopment projects.
• 🌆 The company is well-established in Mumbai's real estate market and focuses on modern designs and sustainable practices.
• 🏗️ India’s real estate market is projected to reach $1 trillion by 2030, boosted by government initiatives like the Smart City Mission and affordable housing schemes.
• 💵 The IPO price band is set between ₹120 and ₹128 per share, with a minimum investment of ₹14,080 for one lot of 110 shares.
• 📊 RAKE Developers has shown strong financial growth, with assets of ₹575 crore and significant revenue and profit increases in FY 24.
• 📉 The company’s debt has decreased from ₹150 crore in FY 23 to ₹70 crore in FY 24, a positive sign of financial health.
• 👍 Based on good financials, high demand, and growth prospects in the real estate sector, the speaker personally favors applying for the IPO but advises watching GMP and subscription levels before the final decision.

Q & A

What is the IPO period for RKE Developers Limited?

The IPO for RKE Developers Limited is open from September 16th to September 19th.

How was the IPO subscribed on its first day?

On the first day, the IPO was already oversubscribed more than 8 times in the retail category, indicating high demand.

What is the current Grey Market Premium (GMP) for RKE Developers' IPO?

The current GMP is around 80, suggesting an estimated listing gain of approximately ₹62 per share.

What type of business does RKE Developers Limited operate in?

RKE Developers is a real estate development company, involved in constructing new buildings and redeveloping existing ones.

How long has RKE Developers been in the real estate industry?

RKE Developers has been in the real estate industry since 1986, making it a well-established company with over 35 years of experience.

What is the estimated growth of the Indian real estate market by 2030?

The Indian real estate market is projected to reach around $1 trillion by 2030, supported by government initiatives like the Smart Cities Mission and Affordable Housing.

What is the price band and minimum investment for the IPO?

The price band for the IPO is set at ₹120 to ₹128 per share. Each lot contains 110 shares, requiring a minimum investment of approximately ₹14,080.

What are the objectives of the RKE Developers IPO?

The funds raised from the IPO will be used to develop ongoing projects, acquire new land, and fund future projects.

How has the company's revenue and profit grown over the last few years?

The company's revenue grew significantly in FY 2024, almost tripling compared to the previous year. The profit after tax also increased from around ₹50 crore in FY 22 and FY 23 to ₹122 crore in FY 24.

What is the debt situation of the company?

The company reduced its debt from ₹150 crore in FY 23 to around ₹70 crore in FY 24, showing a positive trend in managing its borrowings.

What are the key financial indicators of the company?

RKE Developers has a healthy ROE, ROCE, and low debt-to-equity ratio of 0.21, along with a profit margin of around 20%. Its P/E ratio is around 16, indicating a fair valuation.

What is the video creator's opinion on applying for the IPO?

The creator is personally interested in the IPO, citing strong financials, positive market outlook, and high demand. However, they recommend monitoring GMP and subscription rates until the last day before making a decision.