SIGNATURE GLOBAL FILES DRHP WITH SEBI FOR RS. 1000 cr. IPO
Signature Global (India) Limited (Signature Global), has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”) on 12th July 2022 for an IPO aggregating up to Rs.1000 crore. The Offer comprises fresh issue up to Rs.750 crore (Fresh Issue) and Offer for Sale of (OFS) up to Rs.250 crore.
Signature Global is the largest real estate development company in Delhi-NCR, focussed on affordable and mid segment housing in terms of unit supplied (in the below Rs.80 lakh price category) between 2019 and 2021 with a market share of 19% (Source: Anarock Report).
The Company commenced its operations in 2014 through its subsidiary– Signature Builders Pvt. Ltd with acquisition of 6.13 acres of land in Gurugram, Haryana for its “Solera project “. The company has grown its operations over the years and in less than a decade, as on March 31, 2022, Signature Global had sold 23,453 residential and commercial units within Delhi-NCR region out of which 21.478 are the residential units with average selling price of Rs.28.1 lakh per unit. The company’s sales have grown at a CAGR of 142.47% from Rs.440.57 crore in fiscal 2021 to Rs.2,590.22 crore in fiscal 2022.
The Company proposes to utilise the net proceeds from the Fresh Issue towards payment of certain borrowings; Infusion of funds in Subsidiaries, namely Signature global Homes, Signature Infrabuild, Signature global Developers and Sternal Buildcon for payment, borrowings availed by Subsidiaries, inorganic growth through land acquisitions and general corporate purposes. The Offer for Sale comprises equity shares (face value of Re. 1 per equity share) by Promoter Selling Shareholder – Sarvpriya Securities Limited – aggregating up to Rs. 125 crore; and equity shares by Investor Selling shareholder – International Finance Corporation – aggregating up to Rs. 125 crore.
Signature Global is strategically focussed on GOI and Haryana state government policies of supporting Affordable Housing Policy (AHP) and Deen Dayal Jan Awas Yojna (DDJAY). Most of Signature Global’s completed, ongoing and forthcoming projects with saleable area of 84.78% are located in Gurugram and Sohna in Haryana. Almost all its projects are being undertaken under AHP or DDJAY-APHP schemes. In term of sales in Gurugram , Signature Global had market share of 40% in the affordable and mid segment and 29% in all budget categories in the period 2019 to 2021 ( Source: Anarock Report)
ICICI Securities Limited, Axis Capital Limited and Kotak Mahindra Capital Company Limited are the Book Running Lead Managers (BRLMs).