Real estate company Signature Global, which is preparing for its debut public offering on Wednesday, has seen a 32% increase in its sales bookings, reaching Rs 3,430.58 crore in the last fiscal year due to robust demand for housing. The Gurugram-based firm, which specializes in affordable and mid-income housing, recorded sales bookings worth Rs 2,590 crore in the 2021–22 fiscal year.
The company, with backing from HDFC Capital and IFC, is set to enter the capital market on September 20 with an IPO to raise Rs 730 crore, with the offering closing on September 22. In July of the previous year, Signature Global submitted the Draft Red Herring Prospectus (DRHP) to the capital markets regulator SEBI for its IPO.
For its maiden public offering, the company has set a price range of Rs 366–385 per share and aims to raise Rs 330 crore from anchor investors. As per the recently filed Red Herring Prospectus (RHP), the total IPO size is up to Rs 730 crore, comprising a fresh issue of shares up to Rs 603 crore and an offer for sale (OFS) of up to Rs 127 crore, with the majority of the proceeds intended for debt reduction.
Regarding operational performance, Signature Global’s collection from customers increased to Rs 1,920 crore in the last fiscal year, up from Rs 1,282.14 crore in the previous year. The company launched 6.21 million square feet of area in 2022–23, compared to 4.21 million square feet in the preceding year. Additionally, Signature Global delivered 4.01 million square feet of area last fiscal, up from 3.03 million square feet in the previous year.
Chairman Pradeep Aggarwal noted, “Our net debt stood at around Rs 1,100 crore at the end of the last fiscal year. We propose to utilize Rs 432 crore for debt reduction.” The remaining funds will be allocated to inorganic growth through land acquisitions and general corporate purposes.
Signature Global CEO Rajat Kathuria mentioned that the company intends to raise up to Rs 330 crore from anchor investors. Currently, the promoter group holds a 78.35 percent stake in the company, which will decrease to around 69–70 percent post-listing. Through the OFS, the International Finance Corporation is partially divesting its shares, holding a 5.38 percent stake in the company at present.
According to the RHP, the company’s total income increased to Rs 1,585.87 crore in the last fiscal year from Rs 939.60 crore in the previous year, and the net loss narrowed down to Rs 63.71 crore in the 2022–23 fiscal year from Rs 115.5 crore in the previous year.
Signature Global commenced its operations in 2014 through its subsidiary Signature Builders Pvt Ltd with the launch of the ‘Solera’ project on 6.13 acres of land in Gurugram, Haryana. As of March 31, 2023, the company had sold 27,965 residential and commercial units, all within the Delhi NCR region, with a total saleable area of 18.90 million square feet. As of the same date, it had sold 25,089 residential units with an average selling price of Rs 36 lakh per unit.
