On the final day of bidding for the Signature Global (India) IPO, which is worth Rs 730 crore, the subscription rate stood at 7.55 times the issue size. Investors submitted bids for 8.49 crore equity shares against the available 1.12 crore shares.
Retail investors applied for 5.94 times their allotted shares, while high net worth individuals (HNIs) subscribed 11.89 times. The qualified institutional buyers (QIB) portion, typically composed of medium-to-long-term investors, was oversubscribed 6 times.
To meet listing requirements, IPOs must achieve at least 90 percent subscription in the QIB category.
The IPO includes a fresh issue of Rs 603 crore in shares and an offer-for-sale of Rs 127 crore by the International Finance Corporation (IFC). The price band for the offering is set at Rs 366-385 per share.
Signature Global, an NCR-based real estate developer, intends to use the fresh issue proceeds to repay its own and its subsidiaries’ debt, amounting to Rs 432 crore. As of June 30, the company held a total debt of Rs 495.26 crore, while its four subsidiaries had borrowings of Rs 123.86 crore.
