2 Initial Public Offers i.e. IPOs will open from tomorrow (September 16) for listing in the stock market. This includes Arcade Developers Limited and Northern Arc Capital Limited. Investors will be able to bid for both the IPOs till September 19. On September 24, the shares of both these companies will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). 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 crores through this IPO. For this, the company is issuing 32,031,250 fresh shares worth a total of ? 410 crores. The existing investors of the company are not selling a single share through the Offer for Sale (OFS). Retail investors can bid for a maximum of 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 ? 128 of the IPO, then you will have to invest ? 14,080 for this. 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 as per the upper price band. Arcade Developers is a real estate development company Arcade Developers Limited is a real estate development company, which mainly does sophisticated lifestyle residential development in Maharashtra. As of 31 July 2023, the company has built more than 18 lakh square feet of houses. 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 in Mumbai and surrounding areas and sold 792 homes. Arcade Developers Limited’s premium in the grey market is 37.5% Before the IPO opening, the company’s shares have reached a premium of 37.5% i.e. ?48 per share in the grey market. In such a situation, according to the upper price band of ?128, its listing can happen at ?176. However, this can only be estimated, the listing price of the share is different from the grey market price. 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 upper price band of the IPO 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 as per the upper price band. 35% of both IPOs reserved for retail investors
Both the companies have reserved 75% of their IPOs for Qualified Institutional Buyers (QIB). Apart from this, around 10% share is reserved for retail investors and the remaining 15% share is reserved for non-institutional investors (NII). What is an IPO? When a company issues its shares to the general public for the first time, it is called Initial Public Offering i.e. IPO. The company needs money to expand its business. In such a situation, instead of taking 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 an IPO.
