Arkade Developers IPO Basis of Allotment

Our Company was originally incorporated as ‘Arkade Developers Private Limited', at Mumbai as a private limited company under the Companies Act, 1956 and received a certificate of incorporation issued by the RoC, on May 13,1986. Thereafter, our Company was converted into a public limited company, pursuant to a special resolution passed by our Shareholders on June 5,2023, and the name of our Company was changed to its present name pursuant to a fresh certificate of incorporation issued by the RoC on July 7,2023. For further details in relation to changes in the Registered Office of our Company, see ‘History and Certain Corporate Matters' on page 242 of the Prospectus dated September 20,2024 ("Prospectus").

Our Company has filed the Prospectus dated September 20, 2024 with the RoC (the "Prospectus") and the Equity Shares (as defined below) are proposed to be listed on the National Stock Exchange of India Limited ("NSE") and BSE Limited ("BSE") and the trading will commence on Tuesday, September 24,2024.

INITIAL PUBLIC OFFER OF 3,20,37,601 EQUITY SHARES OF FACE VALUE OF M 0 EACH (EQUITY SHARES) OF ARKADE DEVELOPERS LIMITED (COMPANY) FOR CASH AT A PRICE OF Rs.128 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 118 PER EQUITY SHARE) (ISSUE PRICE) AGGREGATING UP TO Rs. 4,100.00 MILLION (ISSUE). THE ISSUE CONSTITUTES 17.26% OF THE POST-ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

OUR COMPANY HAS, IN CONSULTATION WITH THE BRLM, UNDERTAKEN A PRE-IPO PLACEMENT OF 1,626,016 EQUITY SHARES AT AN ISSUE PRICE OF Rs.123 PER EQUITY SHARE (INCLUDING A PREMIUM OFM13 PER EQUITY SHARE) AGGREGATING Rs.200.00 MILLION (PRE-IPO PLACEMENT). THE SIZE OF THE FRESH ISSUE OF Rs. 4,300.00 MILLION HAS BEEN REDUCED BYRs. 200.00 MILLION PURSUANT TO THE PRE-IPO PLACEMENT AND THE REVISED SIZE OF THE FRESH ISSUE IS Rs. 4,100.00 MILLION. FOR RISKS REGARDING APPREHENSION / CONCERNS OF THE LISTING OF OUR EQUITY SHARES OF THE STOCK EXCHANGES, SEE ‘RISK FACTORS - THERE IS NO GUARANTEE THAT OUR EQUITY SHARES WILL BE LISTED ON THE BSE AND THE NSE IN ATIMELY MANNER OR AT ALL' ON PAGE 60 OF THE PROSPECTUS.

THE ISSUE INCLUDED A RESERVATION OF 162,601 EQUITY SHARES AGGREGATING Rs. 20.00 MILLION (CONSTITUTES 0.09% OF OUR POST-ISSUE EQUITY SHARE CAPITAL), FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (EMPLOYEE RESERVATION PORTION). OUR COMPANY, IN CONSULTATION WITH THE BRLM, OFFERED A DISCOUNT OF 3.91% OF THE ISSUE PRICE (EQUIVALENT OF Rs. 5.00 PER EQUITY SHARE) TO THE ELIGIBLE EMPLOYEES BIDDING IN THE EMPLOYEE RESERVATION PORTION (EMPLOYEE DISCOUNT), SUBJECT TO NECESSARY APPROVALS AS MAY BE REQUIRED. THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS HEREINAFTER REFERRED TO AS THE NET ISSUE. THE ISSUE AND THE NET ISSUE CONSTITUTES 17.26 % AND 17.17 % OF OUR POST-ISSUE PAID-UP EQUITYSHARE CAPITAL, RESPECTIVELY

A DISCOUNT OF Rs.5 PER EQUITY SHARE WAS OFFERED TO ELIGIBLE EMPLOYEES BIDDING IN THE EMPLOYEE RESERVATION PORTION.

1. Project / Land Identification Risk: We are primarily engaged in the redevelopment of existing structures and new development projects. We may not be able to successfully identify redevelopment projects or identify and acquire suitable land for our proposed new projects which may have an adverse impact on our business and the growth of our Company.

2. Objects related risk: We propose to deploy a part of the Net Proceeds towards acquisition of unidentified land and general corporate purposes. We cannot assure you that the land that we acquire will be viable or that the project developed on such land will be profitable.

3. Cash Flow Risk: We have had negative cash flows in the past and it may occur in future too. Set out below is certain information in relation to our cash flows with respect to operating activities, investing activities and financing activities for Fiscal 2024, Fiscal 2023 and Fiscal 2022. (in Rs. million)

4. Risk associated with contractual default: We are subject to penalty clauses under the agreements entered into with our customers for any delay in the completion of our projects. We may also face potential claims for defects, liquidated damages for non-fulfilment, and third-party liability for injuries or damages on our properties.

5. Lack of long term contracts with suppliers: We do not enter into long term agreements for supply of labour and key materials for construction of our projects. Any significant increase in the prices, or shortage of, or delay or disruption in supply of labour or key materials for our construction may result in time or cost overruns and may impact our business prospects.

6. Third-party contractor risk: We rely on third-party contractors whom we do not control to construct our projects. If a contractor fails to meet obligations or terminates their contract, we might face delays, additional costs, reduced profits, and potential penalties.

7. Sale of inventory risk: As a real estate development company, our revenue from operations is Primarily dependent on the number of units sold and the time taken to clear our inventories. If we are not able to sell our project inventories in a timely manner, then it may adversely affect our business, results of operations and financial condition.

8. Competition Risk: We operate in a highly competitive market within Mumbai contending with international, national, and regional developers. Failure to compete could negatively impact our market share, financial condition, and profitability.

9. Concentration Risk: We are a Mumbai based real estate developer with operations and projects spread across the MMR region. During Fiscal 2024, Fiscal 2023 and Fiscal 2022 our entire revenue from operations was generated from our operations in the MMR region. Any event or circumstance that adversely affects the real estate market in the MMR region will have an adverse effect on our business, results of operation and ourfinancial condition.

10. Delay in timely completion of projects: Inability to complete our projects by their expected completion dates or at all could have an adverse effect on ourbusiness, results of operations and financial conditions.

11. Weighted average cost of acquisition of all Equity Shares transacted in the 3 years, 18 months and 1 year preceding the date of the Prospectus.

12. Insurance Risk: Our operations are subject to various risks and hazards such as loss of or damage to machinery at construction sites, property located on or adjacent to our construction sites, or fire damage or burglary, which may adversely affect revenue generation and profitability.

13. Non-Appraisal of Objects Risk: The objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution and are based on management estimates.

14. Approvals Risk: Some of our Ongoing Projects require us to obtain approvals or permits, and we are required to fulfil certain conditions precedent in respect of some of them. Any failure to obtain the necessary approvals in time or at all may result in material delays in our Ongoing Projects and could have an adverse impact on our results of operations and prospects.

15. Cost Overrun Risk: Our redevelopment projects have long gestation periods and any delays and cost overruns could adversely affect our prospects, business and results of operations.

16. The average cost of acquisition per Equity Share for our Promoter is Rs. 1.28. 17. Weighted Average Return on Net Worth for Fiscals 2024,2023 and 2022 is 39.94%.

18. The BRLM associated with the Issue has handled 8 main board public issues and 8 SME public issues, in the past 3 financial years out of which None of the issues have closed below the offer price on the listing date.

1. On July 11,2024, Mangilal Ratanchand Jain and Sajjan Mangilal Jain, members of the Promoter Group of our Company have transferred, by way of gift, 10,259,924 Equity Shares each aggregating 6.68% toArpitVikram Jain, one of our Whole Time Directors and Sandeep Ummedmal Jain. On July 22,2024, Amit Mangilal Jain, Promoter of the Company has transferred, by way of gift, 2,659,924 Equity Shares aggregating 1.73% toAarin AmitAmbavat, (one of the members of the Promoter Group), and 160,000 each aggregating to 0.10% to Anisha Bhavesh Jain and Anuja Nitesh Jain (members of the Promoter Group). The details of the Transfers are set out below:

* Arpit Vikra m Jain is one of the Whole Time Direcrot our Company. * * Sandeep Ummedmal Jain is our Chief Operating Office randone of the members of KMP of our Company

2. Shareholding of Mangilal Ratanchand Jain, Sajjan Mangilal Jain, Arpit VikramJain, Sandeep Ummedmal Jain Amit Mangilal Jain, Aarin AmitAmbavat, Anisha Bhavesh Jain andAnuja Nitesh Jain in the Company, priortoand posttheTransfers, are setout below:

DETAILS OF PRE-IPO PLACEMENT

The details of the Equity Shares of face value of0 each allotted by the Company on July 22,2024 for cash in the Pre-IPO Placement are set out below:

*Arpit Vkram Jain is the Whole Time Directarof our Company. "Sandeep Ummedmal Jain is our Cheif Operating Officer and one of the members of the KMP of our Company.

The Issue was made in terms of Rule 19(2)(b)ofthe Securities Contacts (Regulation) Rules, 1957 (SCRR), read with Regulation 31 oftheSEBI ; ICDR Regulations. The Issue was made in accordance with Regulation 6(1) of the SEBIICDR Regulations, through the Book Building Process i wherein not more than 50% of the Issue was made available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs) (such ;portion referred to as QIB Portion), provided that our Company, in consultation with the BRLM allocated up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (Anchor Investor Portion), out of which one-third was reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the price at which : allocation was made to Anchor Investors (Anchor Investor Allocation Price), in accordance with the SEBI ICDR Regulations. Further, 5% of the Net QIB Portion was made available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion was available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids i being received at or above the Issue Price. Further, not less than 15% of the Issue was made available for allocation on a proportionate basis to Non-lnstitutional Investors out of which (a) one-third of such portion was reserved for applicants with application size of more than 70.20 million and up to Rs. 1.00 million; and (b) two-third of such portion was reserved for applicants with application size of more than Rs. 1.00 million, provided that the unsubscribed portion in either of such sub-categories was allocated to applicants in the other sub-category of Non-lnstitutional Investors and ; not less than 35% of the Issue was made available for allocation to Retail Individual Investors in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price. Further, 162,601 Equity Shares were allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation portion. All potential Bidders (except Anchor Investors) were required to : mandatorily use the Application Supported by Blocked Amount (ASBA) process providing details of their respective ASBA accounts, and UPI ID in case of UPI Bidders, if applicable, in which the corresponding Bid Amounts was blocked by the SCSBs or by the Sponsor Banks under the UPI I Mechanism, as applicable, to the extent of the respective Bid Amounts. Anchor Investors were not permitted to participate in the Issue through the ASBA process. For further details, see 'Issue Procedure' on page 441 of the Prospectus.; The bidding for Anchor Investor opened and closed on Friday, September 13, 2024. The company received 12 applications from 12 Anchor

Investors for 13,022,880 Equity Shares. The Anchor investor price was finalized at Rs. 128 per Equity Share. A total of 9,562,500 shares were allocated underthe Anchor Investor Portion aggregating to Rs. 1,224,000,000 :

The Issue received 5,021,073 applications for 2,636,467,220 Equity Shares (prior to rejections) resulting in 82.29 times subscription. The details ; of the applications received in the Issue from various categories are as under: (before rejections): :

Final Demand

A summary of the final demand as at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE on Friday, September 20,2024

A. Allotment to Retail Individual Investors (After Rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Investors, who have bid at the Cut-Off Price or at the Issue Price of f 128 per Equity Share, was finalized in consultation with the BSE. This category has been subscribed to the extent of 58.03 times. The total number of Equity Shares Allotted in Retail Portion is 11,156,250 Equity Shares to 101,420 successful Retail Individual Investors. The category-wise details of the Basis of Allotment are as under:

B. Allotment to Non-lnstitutional Bidders (more than Rs.0.20 million and up to Rs.1.00 million) (After Rejections) (including ASBAApplications):

The Basis of Allotment to the Non-lnstitutional Investors (more than f0.20 million Up to f 1.00 million), who have bid at the Issue Price off 128 per Equity Share or above, was finalized in consultation with BSE. This category has been subscribed to the extent of 184.31 times. The total number of Equity Shares allotted in this category is 1,593,750 Equity Shares to 965 successful applicants. The category-wise details of the Basis of ; Allotment are as under: (Sample) :

C. Allotment to Non-lnstitutional Investors (more than f 1.00 million) (After Rejections) (including ASBAApplications)

The Basis of Allotment to the Non-lnstitutional Investors (more than M.00 million), who have bid at the Issue Price of f 128 per Equity Share or above, was finalized in consultation with BSE. This category has been subscribed to the extent of 169.19 times. The total number of Equity Shares allotted in this category is 3,187,500 Equity Shares to 1,931 successful applicants. The category-wise details of the Basis of Allotment are as under: (Sample)

D. Allotment to Eligible Employees (After Rejections) (including ASBAApplications)

The Basis of Allotment to the Eligible Employee Portion, who have bid at the Issue Price net of Employee Discount, i.e. f123 per Equity Share was finalized in consultation with BSE. This category has been subscribed to the extent of 1.07 times. The total number of Equity Shares allotted in this category is 162,601 Equity Shares to 135 successful applicants. The category-wise details of the Basis of Allotment are as under

Basis of Allotment of remaining 19,711 shares are as under:

E. Allotment to QIBs

Allotment to QIBs, who have Bid at the Issue Price of f 128 per Equity Share or above, has been done on a proportionate basis in consultation with the BSE. This category has been subscribed to the extent of 171.66 times of QIB Portion. The total number of Equity Shares Allotted in the QIB Portion is 6,375,000 Equity Shares. The category-wise details of the Basis of Allotment are as under:

F. Allotment to Anchor Investors

The Company, in consultation with the BRLM, have allocated 9,562,500 Equity Shares to 9 Anchor Investors (through 12 Applications) at the Anchor Investor Issue Price of Rs. 128 per Equity Share in accordance with the SEBI Regulations. This represents 60% of the QIB Portion.

The IPO Committee of our Company on September 20, 2024 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being BSE and has allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum- Intimations and/ or notices will be dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Issue Account have been issued on Friday, September 20, 2024 and payment to non-Syndicate brokers have been issued on Monday, September 23, 2024. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Equity Shares Allotted to the successful Allottees have been uploaded on Monday, September 23, 2024 tor credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing application with BSEandNSEon Monday, September 23,2024. The Company has received listing and trading approval from BSE and NSE and the trading will commence on or about Tuesday, September 24,2024.

Note: All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus..

The details of the allotment made will be hosted on the website of the Registrar to the Issue, Bigshare Services Private Limited at www.bigshareonline.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied tor, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address given below:

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF ARKADE DEVELOPERS LIMITED.

ARKADE DEVELOPERS LIMITED has filed the Prospectus dated September 20, 2024 with the RoC. The Prospectus is available on the website of the Company at www.arkade.in, SEBI at www.sebi.gov.in, the websites of the Stock Exchanges, i.e., the BSE Limited and the National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively, and on the website of the BRLM, i.e., Unistone Capital Private Limited at www.unistonecapital.com. Any investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section entitled "Risk FactorsRs. on page 31 of the Prospectus. Potential Bidders may rely on the information disclosed in the Prospectus as being true and correct. This announcement does not constitute an invitation or offer of securities for sale in any jurisdiction. The Equity Shares offered in the Issue have not been and will not be registered underthe U.S. Securities Act of 1933, as amended (U.S. Securities Act) or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in ‘offshore transactions" as defined in, and in compliance with, Regulation S under the U.S. Securities Act and pursuant to the applicable laws of the jurisdictions where those offers and sales are made. There will be no public offering of the Equity Shares in the United States.