Signature Global IPO

SIGNATURE GLOBAL Company Profile – Key products, finance, management team, strategic insights

SIGNATURE GLOBAL Operation:

SIGNATURE GLOBAL was founded in the name of ‘Ridisha Marketing Private Limited’ in the year 2000. The Company changed its name to ‘Signature global (India) Private Limited in year 2014, according to a special resolution passed by the Shareholders on January 6, 2014. SIGNATURE GLOBAL was converted from a private limited company to a public limited company on February 14, 2022, and the name of our Company was changed to ‘Signatureglobal (India) Limited’.

Headquartered in New Delhi, India, the company is one of the largest real estate development companies in the National Capital Region of Delhi. Signature global focuses on affordable and mid-segment housing segments. The price of the house units is usually in the below ₹ 8 million categories. The company holds a market share of 19% in the region. Signature global sold 23,453 residential and commercial units, all within the Delhi NCR region, with an aggregate Saleable Area of 14.59 million square feet, as of March 31, 2022. Signature Global is a well-known brand in the region. As of March 31, 2022, the company has 484 channel partners and an in-house team of 43 employees engaged in direct sales and 96 employees for indirect sales.

Signature global Key Products & Services:

Signature global offers projects mainly under two categories, Affordable Plotted Housing Policy (AHP) and the Deen Dayal Jan Awas Yojana (DDJAY – APHP). The Affordable Plotted Housing Policy (AHP) permits greater density, which is the number of people per acre, that enables us to build smaller unit sizes leading to improved salability. The company claims to be the largest real estate developer under the AHP in the Gurugram and Sohna region. The market share of Signature global is 23% in terms of the total supply of units in the period from 2019 to 2021 in the region. All the projects of the company are located in the well-developed Delhi NCR region.

All the projects under the AHP are typically priced below ₹ 3.00 million per unit. This price includes amenities such as recreational areas, gardens, open spaces, and community halls. The company also has projects under the Deen Dayal Jan Awas Yojana (DDJAY – APHP). These projects are typically priced between ₹ 4.00 million and ₹ 8.00 million per unit including facilities such as gymnasiums, recreational spaces, entertainment centers, swimming pools, and sporting facilities. The company also claims to be the largest real estate developer under the DDJAY – APHP in the Gurugram and Sohna region. The market share of the company is 49% of the total supply of units under DDJAY – APHP floors in the period from 2019 to 2021.

Signature global is also into developing commercial property. Infinity Mall and Signature Global Mall are a few commercial properties in the Delhi-NCR region that were developed by the company. SCO 36 and SCO 37D are other commercial properties the company has developed in the region. The company claimed to deliver the projects on time.

Signature global Management team:

Signature Global is led by the Chairman and Whole-time Director, Pradeep Kumar Aggarwal. Mr. Pradeep has over eight years of experience in the real estate business. He is one of the founders of the company. Pradeep Kumar Aggarwal was previously associated with 8 companies such as SMC Global Securities Limited, SMC Comtrade Limited, Signature Builders Private Limited, Sternal Buildcon Private Limited, and Forever Buildtech Private Limited, Maa Vaishno Net – Tech Private Limited, SMC Real Estate Advisors Private Limited, Sarvpriya Securities Private Limited.

Lalit Kumar Aggarwal is the Vice Chairman and Whole-time Director of the company. He has more than seven years of experience in the real estate business and is responsible for the construction, marketing, and human resources aspects of the company. Mr. Lalit is one of the founders of the company. He is a Graduate of Humanities.

Ravi Aggarwal is the Managing Director of the company. He has over nine years of experience. Mr. Ravi is responsible for the overall business development of our Company.

Financial snapshot:

Signatureglobal’s total revenue increased from INR 2630.3 million in FY 2020 to INR 9396 million in FY 2022. The company revenue takes a 4-time jump during this period. However, total expenses have also increased significantly from INR 3375.33 million in FY 2020 to INR 10760.17 million in FY 2022. Above all, the company has been incurring losses during the mentioned period. Signature global total loss has increased from INR 565.74 million in FY 2020 to INR 1155 million in FY 2022 due to an increase in the cost of sales. Around 80% of the expenses incurred are due to the higher cost of sales which is INR 8198.69 million in FY22 as against total expenses of INR 10760.17 million during the same time.

Parameters (INR Million -Year ended March 31)202020212022
Total Income2630.31547.199396
Total Expenses3375.332466.5510760.17
Loss after Tax-565.74-862.78-1155
Source: DRHP filed by Signature global with SEBI

Industry Outlook:

Affordable housing is an integral part of the national agenda with policy pushes from both states as well as the central government of India. Urbanization and smart city initiative by Government further push this industry. PMAY is a flagship mission by the Government of India being implemented by the Ministry of Housing and Urban Affairs to provide houses to all. The government of India’s initiative “Housing for All by 2022” further boosted this industry.

Budget housing units that provide basic amenities with access to affordable transportation, education, and quality healthcare is the need of the hour. There has been a gap in demand and supply of urban housing in India with a housing shortage of 18.78 million houses during the 12th-period plan. As per UNDP, by 2046 approximately 50% of the population in India will be urban. This will further fuel the need for housing in the cities.

Total supply of affordable units where ticket size is less than ₹ 4 million and mid-segment units where ticket size is between ₹ 4 million – ₹ 8 million has been increasing. In the top seven cities, the supply was approximately 0.68 million units, which is 72% of the total supply from 2017 to 2021. That indicates the significant preference for the affordable and mid-segment category of housing.

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Growth Strategy:

Signature Global has completed its project on time. With the support of government policies, the company has been performing well. However, the business and profitability are significantly dependent on the performance of the real estate market in the Delhi-NCR region. Signature global is mainly concentrated in the area of the Delhi-NCR region, particularly in Gurugram and Sohna micro-markets in Haryana. The performance of the company will depend on the fluctuations in market conditions and pandemic conditions like Covid 19.

The withdrawal of certain government benefits under the housing development scheme will affect the business, prospects, and results of the company operations. The company is focusing on residential properties and changes in demand will further hamper the future growth prospects. In my view, investing in real estate companies is always a risk as several unforeseen factors affect their performance. Again, this company is completely focused on one region, hence the performance of the company will depend on the local govt. policies along with other factors.

Signature Global is coming up with Initial public offering (IPO) to meet its expansion plan. You can refer here for more details on the upcoming IPO of Signature global.

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