Signature Global (India), a real estate development company, is set to launch its initial public offering (IPO) worth Rs 730 crore. The IPO subscription will open on September 20 and close on September 22, offering shares in the price range of Rs 366-385 per share, with a lot size of 38 equity shares and multiples thereafter.
Signature Global specializes in affordable and lower mid-segment housing and is the largest real estate development player in the National Capital Region of Delhi (Delhi-NCR). The company focuses on developing commercial, residential, and retail projects in northern cities such as Gurugram, Ghaziabad, and Karnal.
The IPO consists of fresh equity shares worth Rs 603 crore and an offer-for-sale (OFS) of shares worth Rs 127 crore by selling shareholder International Finance Corporation, a member of the World Bank Group. Signature Global reduced its issue size by about 28% from its initial plan to raise around Rs 1,000 crore through the primary markets.
The net proceeds from the fresh share sale will be utilized to repay debts amounting to Rs 432 crore, with the remaining funds allocated for inorganic growth through land acquisitions and general corporate purposes. The OFS proceeds will go to the selling shareholder.
As of March 2023, Signature Global had sold 27,965 residential and commercial units in the Delhi NCR region. The company focuses on leveraging central and state government policies that support affordable housing to help customers achieve their dream of home ownership.
For the fiscal year ending March 31, 2023, Signature Global reported a net loss of Rs 63.7 crore and consolidated revenue from operations of Rs 1,553.6 crore. In the previous financial year 2021-22, the company had a net loss of Rs 115.5 crore and revenue of Rs 901.3 crore.
On September 18, Signature Global raised Rs 318.5 crore from 19 anchor investors, including Nomura Trust, Eastspring Investments, Lion Global Investment, Troo Capital, Segantii India Mauritius, Morgan Stanley, BNP Paribas Arbitrage – ODI, Goldman Sachs, and Copthall Mauritius Investments. The allocation included 82,72,700 equity shares at Rs 385 per share.
The IPO has a 75% reservation for qualified institutional bidders, 15% for non-institutional investors (NIIs), and the remaining 10% for retail investors. ICICI Securities, Kotak Mahindra Capital Company, and Axis Capital are the book-running lead managers for the IPO, with Link Intime India serving as the registrar. The company’s shares will be listed on both BSE and NSE.
