Signature Global, a Delhi-NCR real estate firm, has seen strong interest in its IPO, aiming to raise capital for expansion. Priced at Rs 366-385 per share, the IPO totals around Rs 730 crore. On day one, it achieved a 54% subscription rate, and by day two, it was oversubscribed at 1.61 times. Non-institutional investors and retail individuals showed substantial interest with 1.42 and 89% subscription rates respectively on day one. The IPO proceeds will primarily be used to reduce debt, and post-listing, the promoter group's stake will decrease from 78.35% to around 69–70%. Signature Global focuses on affordable and mid-income housing segments and has a strong presence in Delhi-NCR.
Signature Global, a prominent realty firm based in Delhi-NCR, has witnessed a substantial response to its initial public offering (IPO) on the first and second day of bidding. The IPO is part of Signature Global's efforts to raise capital for its growth and expansion plans in the real estate sector. The company has chosen a price band of Rs 366-385 per share for the offer. The IPO's total size is approximately Rs 730 crore, comprising a fresh issue of shares valued at up to Rs 603 crore and an Offer for Sale (OFS) worth up to Rs 127 crore.
According to data published by the NSE, on day one, the IPO garnered a subscription rate of 54 percent, with bids pouring in for 60,34,704 shares out of the total offering of 1,12,43,196 shares. On day two, it was subscribed 1.61 times, with bids for 1,81,17,374 shares against 1,12,43,196 shares on offer.
On day one, non-institutional investors category experienced a subscription rate of 1.42 times, while the Retail Individual Investors (RIIs) category boasted an impressive 89 percent subscription rate. One day two the quota for non-institutional investors was subscribed 3.06 times while the portion of Retail Individual investors (RIIs) was subscribed 2.53 times and the category for Qualified Institutional Buyers (QIBs) garnered a 62 percent subscription.
Signature Global, backed by HDFC Capital and IFC, filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator Sebi in July last year to launch its IPO. The company has already secured Rs 319 crore from anchor investors, including Nomura. In a regulatory filing, Signature Global revealed that 82,72,700 equity shares were subscribed at Rs 385 per equity share in the Anchor Investors (AIs) portion of the public issue.
According to the recently filed Red Herring Prospectus (RHP), the bulk of the IPO proceeds will be used to reduce debt. This information was reiterated to the press by Signature Global’s Chairman Pradeep Aggarwal who stated that the company’s net debt at the end of the last fiscal year amounted to approximately Rs 1,100 crores, which they intend to reduce by Rs 400 crore by the end of the current fiscal year.
Currently, the promoter group holds a 78.35 percent stake in the company, which is expected to reduce to around 69–70 percent post-listing. The International Finance Corporation (IFC), an existing shareholder, will partially divest its shares through the Offer for Sale (OFS) route. IFC currently holds a 5.38 percent stake in Signature Global.
Signature Global has established a strong presence in the affordable and mid-income housing segments. In the previous fiscal year, the company achieved sales bookings worth Rs 2,590 crore, reflecting its commitment to providing quality homes at accessible price points. Since its inception in 2014, the company has consistently grown its footprint in the Delhi-NCR region. As of March 31, 2023, the company has successfully sold 27,965 residential and commercial units within Delhi-NCR, encompassing an aggregate saleable area of 18.90 million square feet.
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