Signatureglobal (India) Ltd. is set to initiate its initial public offering (IPO) on September 20th. The IPO will consist of a fresh issue of equity shares worth Rs 603 crore, in addition to an offer for sale of shares valued at Rs 127 crore. The price range for the shares has been established at Rs 366-385 per share. In terms of the IPO allocation, 75% of the total size is earmarked for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% is designated for retail individual investors.
Key IPO Details:
– IPO Opening Date: September 20
– IPO Closing Date: September 22
– Total IPO Size: Rs 730 crore
– Fresh Issue Size: Rs 603 crore
– Offer for Sale Size: Rs 127 crore
– Face Value of Shares: Re 1 apiece
– Price Band: Rs 366–385 per share
– Listing: NSE, BSE
Business Focus:
Signatureglobal (India) specializes in developing affordable and lower mid-segment housing primarily priced below Rs 80 lakh. The company has gained a 19% market share between 2020 and March 31, 2023, with a focus on government policies like the Affordable Housing Policy, 2013, and Deen Dayal Jan Awas Yojana. It also places emphasis on sustainable development by incorporating green features such as water-saving measures, waste management, and solar panels in its projects. Most of its projects are strategically located in Delhi NCR, offering connectivity to various parts of the region.
Risk Factors:
The company’s fortunes are closely tied to the performance of the real estate market in the Delhi NCR region, particularly in Gurugram and Sohna micro-markets in Haryana. Market fluctuations can impact its ability to sell projects at anticipated prices, affecting revenue and earnings. Changes in government policies may also influence the business. Projects in early planning stages requiring approvals and renewals could face delays. Additionally, significant cost increases, material shortages, and labor delays may lead to construction cost overruns.
