ET Developers, a mid-tier residential realty company focused on the suburban Mumbai market, plans to raise 10 crore through fresh equity
to fund development expenses.
The promoter gro up’s stake will fall to 70.8% after the IPO from 85.6%. The company has
negligible long-term borrowings despite operating in the capital Intensive sector since its projects are financed through internal accruals and promoter equity: It has developed over 4.5 million square feet of space across 28
IPO WATCH
projects spread over the past two decades, largely in the western suburbs of Mumbal. The company focuses on both new and redevelop- ment segments and has started opting for rental income in its new launches. Given these factors, long-term investors willing to have exposure to a niche
realty play in the count s most expensive real estate market may consider the IPO.
Business: Incorporated in 1966, Arkade has historically operated in the Mumbai suburbs of Vile Parle, Goregaon, Malad, Kandiva- 11, Borivali, and Mira Road. Recent- ly it has started executing projects in the eastern suburbs of Mulund and Bhandup New projects contri- buted 166.9% to the revenue in 2024 compared with 5% in the previo us year while the rest was from redevelopment projecta. New projects typically have higher profitability The average price per unit improved to r2.1 crore in FY24 from 17 crore in FY22. The compa ny has six ongoing projects and an equal number of upcoming pro jects with a total saleable carpet area of 1.3 million square feet. In the case of ongoing projects, it has sold over half of the carpet area. tion, and amartisation (Ebitda
nings before interest, tas, deprecia
margin) level fell by 200 basis points 1026.7% during the period while return on equity (RoE) improved by 600 basds points to 46.9%. The debt equity ratiodropped to 0.2 in FY24 from 04 in FYZZ
Valuation: The company demands a price-to-earnings (P/E) multiple of
up to 19.4, and a price-book (P/B) multiple of 3.2 based on post-IPO equity its enterprise value (EV) is 15 times Ebitda. Listed residential
realty companies operating in
Financials: Revenue from opera- tions incrvosed by 66.5% annually to 24.7 crore while net profit rose by 55.5% to crore between FY22 and FY24. The margin at the ear-
Mumbai including Keystone Real- tors (Rustomjee) and Sura) Estate Developers trade at a P/E of 79.5 and 493, P/Bof 49 and 6.4, and EV/ Ebitda of 648 and 16.9, respectively
