Signatureglobal India IPO: All You Need To Know
The real estate developer plans to raise Rs 730 crore via a fresh issue and an offer for sale.
Signatureglobal (India) Ltd. will launch its initial public offering on Sept. 20.
The real estate developer plans to raise Rs 730 crore via a fresh issue and an offer for sale.
The fresh issue will be of Rs 603 crore worth of equity shares, while the offer for sale will be of shares worth Rs 127 crore. The price band is fixed between Rs 366-385 per share.
Of the total IPO size, 75% is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% is to be allotted to retail individual investors.
Issue Details
Issue opens: Sept. 20.
Issue closes: Sept. 22.
Total offer size: Rs 730 crore.
Fresh issue size: Rs 603 crore.
Offer for sale size: Rs 127 crore.
Face value: Re 1 apiece.
Fixed price band: Rs 366–385 per share.
Listing: NSE, BSE.
Business
Signatureglobal (India) is a real estate development company operating mainly in the National Capital Region, Delhi. The company's main concentration lies in the supply of affordable and lower mid-segment housing, specifically in the price category below Rs 80 lakh. Between 2020 and March 31, 2023, the company has attained 19% market share, according to Anarock Property Consultants Pvt.
As of March 31, the company had sold 27,965 residential and commercial units, all within the Delhi NCR region, with an aggregate saleable area of 18.90 million square feet.
The company strategically emphasises government policies like the Affordable Housing Policy, 2013, and Deen Dayal Jan Awas Yojana. It also promotes sustainable development with green features, including water-saving measures, waste management and solar panels in its projects.
Most of the firm's projects are located in Delhi NCR, with connectivity to other parts of the region. Some of the key completed projects are located in Gurugram, Haryana and some of their notable ongoing projects include City 37D and Prime located in Gurugram, and Sunrise in Karnal.
Use Of Proceeds
The funds that will be raised will be employed for the following purposes:
Repayment or prepayment of certain borrowings.
Payment of borrowing prevailed by subsidiaries—Signatureglobal Homes Pvt., SignatureGlobal Developers Pvt., Signatureglobal Business Park Pvt. and Sternal Buildcon Pvt.
Inorganic growth through land acquisitions and general corporate purposes.
The company has sold 25,089 residential units with an average selling price of Rs 3.60 million per unit, as of March 31.
Risk Factors
The firm's business and profitability are significantly dependent on the performance of the real estate market in the Delhi NCR region, particularly in Gurugram and Sohna micro-markets in Haryana. Fluctuations in market conditions may affect their ability to sell projects at expected prices, which could affect company revenue and earnings.
The withdrawal of certain benefits under the Haryana Affordable Housing Policy, 2013 and the Deen Dayal Jan Awas Yojna may have an impact on the business, prospects and results of operations.
Some of the firm's projects are in the preliminary stages of planning and require approvals and renewals. Any delay in acquiring the necessary approvals may cause the company to reschedule ongoing projects and forthcoming projects.
Significant increases in prices, shortage or delay in supply of construction materials, contract labour and equipment can affect estimated construction costs and timelines, resulting in cost overruns.
