Signature Global, the renowned real estate development company focusing on affordable and lower mid-segment housing in the National Capital Region of Delhi (Delhi NCR), is all set to open its initial public offering (IPO) on September 20. The company has made some adjustments to its IPO plans, including a reduced IPO size and a modified price band.
Here are the key details of the Signature Global IPO:
- IPO Dates: The Signature Global IPO will be open for subscription from September 20 to September 22, providing investors with a three-day window to participate.
- Revised IPO Size: Signature Global initially aimed to raise Rs 1,000 crore through its IPO. However, the company has now decided to reduce the size, with the revised IPO seeking to raise Rs 730 crore.
- Price Band: The price band for the Signature Global IPO has been set at Rs 366 to Rs 385 per share. This range represents the cost at which investors can bid for the company’s shares.
- Lot Size: Investors can bid for a minimum of one lot of 38 equity shares and in multiples of the lot size thereafter.
- Utilization of Funds: The proceeds from the fresh share sale, amounting to Rs 603 crore, will primarily be used to repay debts totaling Rs 432 crore. The remaining funds will support inorganic growth through land acquisitions and general corporate purposes. International Finance Corporation, a World Bank Group member and a shareholder in Signature Global, will sell shares worth Rs 127 crore through the offer-for-sale (OFS) route.
- Anchor Book: The anchor book for the IPO is set to open on Monday, September 18, ahead of the main IPO launch.
Signature Global has established itself as a significant player in the real estate sector, particularly in Gurugram, Karnal, and Ghaziabad, where it develops residential, commercial, and retail projects.
While the company reported a net loss of Rs 63.7 crore for the fiscal year ending March 31, it achieved consolidated revenue from operations of Rs 1,553.6 crore during the same period. Comparatively, in the previous financial year, Signature Global recorded a net loss of Rs 115.5 crore with a revenue from operations of Rs 901.3 crore.
For the IPO, 75 percent of the net offer has been reserved for qualified institutional bidders (QIBs), 15 percent for non-institutional investors (NIIs), and 10 percent for retail investors.
ICICI Securities, Axis Capital, and Kotak Mahindra Capital Company serve as the book-running lead managers for the issue, while Link Intime India has been appointed as the registrar to the issue. Once listed, Signature Global shares will trade on the main boards of both BSE and NSE.
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