Arkade Developers Limited has received its final Monitoring Agency Report from Crisil Ratings Limited for the quarter ended March 31, 2026, confirming the complete utilisation of proceeds raised through its Initial Public Offer (IPO). The report, filed with stock exchanges on May 12, 2026, under reference number CRL/MAR/AKDPL/2025-26/1772, marks the conclusion of IPO proceeds monitoring for the company.

IPO Issue Details

The IPO, which was open for subscription between September 16, 2024, and September 19, 2024, raised gross proceeds of Rs 4,100.00 million through a fresh issue of equity shares. The key financial parameters of the issue are summarised below:

During the quarter ended March 31, 2026, the net proceeds were revised from Rs 3,810.65 million to Rs 3,800.75 million. This revision was on account of actual issue expenses being higher than estimated as disclosed in the Prospectus, by Rs 9.90 million, with the difference adjusted against the General Corporate Purposes allocation.

Utilisation of IPO Proceeds

The Monitoring Agency confirmed that all proceeds were utilised in accordance with the objects disclosed in the Prospectus dated September 29, 2024. The following table captures the progress of utilisation across all heads during the quarter:

Proceeds under Funding Development Expenses were utilised towards construction costs related to various development projects. Notably, during the quarter, the company transferred Rs 5.15 million from its monitoring account to its other current account for operational ease, and these transferred proceeds stand fully utilised as at March 31, 2026.

Cost Revisions and Object-wise Breakdown

The revised cost allocation across the two primary objects of the issue, compared to original estimates, is presented below:

The amount allocated for land acquisition and General Corporate Purposes does not exceed 35% collectively (i.e., Rs 1,435.00 million) of the Gross Proceeds, and individually, General Corporate Purposes utilisation does not exceed 25% (i.e., Rs 1,025.00 million) of Gross Proceeds.

General Corporate Purposes Utilisation

For the quarter ended March 31, 2026, an amount of Rs 10.47 million was utilised under the General Corporate Purposes head towards expenses incurred in the ordinary course of business, specifically payments to vendors. The Board of Directors, vide resolution dated May 11, 2026, approved the quantum of utilisation of General Corporate Purposes towards the mentioned item heads, in line with the disclosure provided in the offer document dated September 29, 2024.

Final Report and Compliance Confirmation

The Monitoring Agency confirmed no deviation from the objects of the issue, no change in the means of finance, and no major deviations observed over earlier monitoring agency reports. No unfavourable events affecting the viability of the objects were noted. As on March 31, 2026, both the public issue account balance and the monitoring account balance stand at Nil. Crisil Ratings has accordingly issued this as the final Monitoring Agency Report for the proceeds raised through the IPO of Arkade Developers Limited. The report was prepared on the basis of a management undertaking and a statutory auditor certificate dated April 27, 2026, issued by M/s Mittal & Associates, Chartered Accountants (Firm Registration Number: 106456W).

Arkade Developers Limited has received an order from the Assistant Commissioner (Appeals Thane), Central Goods and Services Tax and Central Excise Thane Commissionerate, imposing a tax demand and penalty under the CGST Act, 2017. The disclosure was made to the stock exchanges on May 02, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Order Details

The order dated April 30, 2026, was received by the company late evening on the same date. The Assistant Commissioner, Division III, Central Goods and Services Tax and Central Excise Appeals, Thane Commissionerate, passed the order regarding the company's GST matters.

Financial Implications

The following table summarises the financial impact of the order:

Nature of Violation

The GST department has disallowed Input Tax Credit (ITC) for certain transactions for the periods FY 19-20, FY 20-21, and FY 21-22. The disallowed ITC forms the basis for the tax demand and penalty imposed under the applicable provisions of the CGST Act, 2017.

Company Response

Arkade Developers Limited has stated that there is no material impact on the financial and operational activities of the company. The company is currently in the process of obtaining necessary legal opinion and is considering filing an appeal against the order. The disclosure has been submitted to both BSE Limited and National Stock Exchange of India Limited for their records.

Annexure A Details

The complete details as disclosed under Schedule III of SEBI (LODR) Regulations, 2015, are as follows: