NE BUSINESS BUREAU
CHENNAI, JULY 21
Gurugram-based realty major Signature Global (India) Limited has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise Rs 1,000 crore through an initial public offering (IPO), says a release.
The IPO will comprise a fresh issue of equity shares worth up to Rs 750 crore and an Offer for Sale (OFS) of up to Rs 250 crore, according to the draft red herring prospectus (DRHP) filed last Tuesday.
- The company proposes to utilise the net proceeds from the fresh issue towards payment of the debt, inorganic growth through land acquisitions and general corporate purposes
- As a part of the OFS, promoter Sarvpriya Securities and investor International Finance Corporation will sell equity shares worth up to Rs 125 crore each.
- Also, funds will be used to pay the debt of subsidiaries — Signatureglobal Homes, Signature Infrabuild, Signatureglobal Developers and Sternal Buildcon.
- Signature Global is strategically focussed on the Government of India (GOI) and Haryana state government policies of supporting Affordable Housing Policy (AHP) and Deen Dayal Jan Awas Yojna (DDJAY)
As a part of the OFS, promoter Sarvpriya Securities and investor International Finance Corporation will sell equity shares worth up to Rs 125 crore each.
The company proposes to utilise the net proceeds from the fresh issue towards payment of the debt, inorganic growth through land acquisitions and general corporate purposes.
Also, funds will be used to pay the debt of subsidiaries — Signatureglobal Homes, Signature Infrabuild, Signatureglobal Developers and Sternal Buildcon.
Gurugram-based property developer Signature Global is focused on affordable and mid-housing segments with a market share of 19 percent.
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).
Signature Global is strategically focussed on the Government of India (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)
As of March 2022, Signature Global had sold 23,453 residential and commercial units within the Delhi-NCR region, out of which 21.478 are residential units with an average selling price of Rs 28.1 lakh per unit.
The company’s sales have grown at a CAGR of 142.47 percent from Rs 440.57 crore in fiscal 2021 to Rs 2,590.22 crore in fiscal 2022.
Kotak Mahindra Capital Company, ICICI Securities and Axis Capital are the book-running lead managers to the issue.
