Real estate developer Signature Global has secured Rs 318.5 crore from anchor investors, including Nomura, ahead of its IPO. The company's offering, which runs until September 22, seeks to raise Rs 730 crore. The IPO's price range is set at Rs 366 to Rs 385 per share. Proceeds will be primarily used to reduce debt. Signature Global, which focuses on affordable and mid-income housing, has seen a 32 percent growth in sales bookings, reaching Rs 3,430.58 crore in the last fiscal year due to strong housing demand. It will offer 112 residential units in its upcoming phase two.
Signature Global, a real estate developer poised for its inaugural public issue, has garnered a substantial investment of Rs 318.5 crore from anchor investors, with Noruma taking the lead. A regulatory disclosure reveals that 82,72,700 equity shares in the Anchor Investors (AIs) segment of the public issue have been subscribed to at a rate of Rs 385 per equity share. The prominent contributor to this segment was Nomura Trust and Banking Co. Ltd., which secured the highest share acquisition with 18,70,094 shares. Other significant participants in this initiative include Kotak India EQ Contra Fund, Kotak Mahindra Trustee Co. Ltd., Goldman Sachs Singapore, Quant Mutual Fund, Morgan Stanley Asia, Nippon India Equity Opportunities AIF, Bandhan Core Equity Fund, BNP Paribas Arbitrage, and Societe Generale.
Signature Global, backed by HDFC Capital and IFC, is gearing up for its IPO launch on September 20, aiming to raise Rs 730 crore. This offering will remain open for subscription until September 22. The IPO has been priced within a range of Rs 366 to Rs 385 per share, with a primary focus on utilizing the proceeds for debt reduction. The previous fiscal year witnessed a remarkable surge in sales bookings for Signature Global, registering a substantial 32 percent growth, totalling an impressive Rs 3,430.58 crore. The driving force behind this exceptional performance has been the escalating demand for housing. Headquartered in Gurugram, Signature Global specializes in affordable and mid-income housing.
During this fiscal year, customer collections soared to Rs 1,920 crore, marking a significant rise from the preceding fiscal year, which recorded collections of Rs 1,282.14 crore. Signature Global has allocated a significant portion of the funds, approximately Rs 432 crore, for debt reduction, with the balance earmarked for fostering inorganic growth, including land acquisitions and addressing general corporate needs. Following the IPO, the promoter group's stake is expected to be reduced from the current 78.35 percent to around 69–70 percent. Additionally, the International Finance Corporation (IFC) is planning to divest a portion of its shares through the Offer for Sale (OFS) mechanism, as it currently holds a 5.38 percent stake in the company.
The recently published Red Herring Prospectus (RHP) highlights that Signature Global's total income for the last fiscal year has surged to Rs 1,585.87 crore, compared to Rs 939.60 crore in the previous year. Concurrently, the net loss has experienced a noteworthy reduction, decreasing from Rs 115.5 crore in the previous fiscal year to Rs 63.71 crore in the fiscal year 2022–23. Established in 2014, Signature Global has successfully sold 27,965 residential and commercial units by March 31, 2023, encompassing an impressive saleable area of 18.90 million square feet, all within the Delhi-NCR region. Over the same period, the company achieved the sale of 25,089 residential units, with an average selling price of Rs 36 lakh per unit.
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