Signature Global's IPO witnessed strong investor interest, with a subscription rate of 11.88 times on the final day. Institutional investors played a pivotal role in this success, resulting in bids for 13,36,05,074 shares against the offered 1,12,43,196. Non-institutional investors subscribed 13.54 times, QIBs 12.71 times, and RIIs 6.82 times. The IPO, totalling Rs 730 crore, included a fresh issue of Rs 603 crore and an Offer for Sale of Rs 127 crore. Proceeds will significantly reduce debt, with net debt at around Rs 1,100 crore. Post-listing, the promoter stake will decrease from 78.35 percent to 69–70 percent.
The final day of the Signature Global (India) Initial Public Offering (IPO) witnessed a remarkable surge in investor interest, leading to a subscription rate of 11.88 times. Enthusiastic participation from institutional investors, reflecting strong confidence in the company's prospects, bolstered this exceptional response. According to data from the National Stock Exchange (NSE), the public offering received bids for an astounding 13,36,05,074 shares, a substantial contrast to the 1,12,43,196 shares on offer. Noteworthy is the significant strength displayed in the non-institutional investors' segment, achieving a subscription rate of 13.54 times.
Equally impressive was the response from the Qualified Institutional Buyers (QIBs) category, which registered a subscription rate of 12.71 times. Even the Retail Individual Investors (RIIs) category, often indicative of broader market sentiment, garnered substantial interest, boasting a subscription rate of 6.82 times. This surge in investor enthusiasm follows a notable start, with the IPO initially witnessing a subscription rate of 1.61 times on the second day of bidding. The IPO, with a total size of up to Rs 730 crore, encompasses a fresh issue of shares valued at up to Rs 603 crore and an Offer for Sale (OFS) amounting to up to Rs 127 crore.
Ahead of the IPO, Signature Global, headquartered in Delhi-NCR, successfully raised Rs 318.5 crore from anchor investors, including the reputable Nomura. The backing of HDFC Capital and IFC further bolstered the company's position. This IPO journey commenced with the filing of the Draft Red Herring Prospectus (DRHP) with the capital markets regulator, Sebi, in July of the preceding year, setting the stage for its compelling narrative. The recently filed Red Herring Prospectus (RHP) outlines the allocation of a substantial portion of the proceeds to debt reduction.
Signature Global's Chairman, Pradeep Aggarwal, revealed that their net debt stood at approximately Rs 1,100 crore at the close of the previous fiscal year. From the IPO proceeds, they intend to channel Rs 432 crore towards debt reduction. The residual funds will be earmarked for strategic land acquisitions and general corporate requirements. At present, the promoter group maintains a 78.35 percent stake in the company. Post-listing, this stake is expected to diminish to approximately 69–70 percent. Signature Global, with its niche focus on affordable and mid-income housing segments, delivered commendable sales bookings worth Rs 2,590 crore in the preceding fiscal year.
The inception of Signature Global dates back to 2014. As of March 31, 2023, the company has proudly sold 27,965 residential and commercial units, all within the Delhi-NCR region. This translates to an impressive aggregate saleable area spanning 18.90 million square feet. Steering the IPO with expertise were renowned entities such as ICICI Securities, Axis Capital, and Kotak Mahindra Capital Company, all acting as managers to the offer. The culmination of these endeavours signifies not only a successful public offering but also a testament to the company's enduring commitment to excellence and growth in the real estate sector.
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