Signature Global – the company and management:
Real estate company Signature Global is coming up with an IPO later this year. The company has filed a draft red herring prospectus (DRHP) with SEBI to raise ₹1,000 crores through the initial public offering. 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. Signature global offers projects mainly under two categories, Affordable Plotted Housing Policy (AHP) and the Deen Dayal Jan Awas Yojana (DDJAY – APHP).
Suggested reading – Read the complete company insights here – “SIGNATURE GLOBAL Company Profile – Key products, finance, management team, strategic insights”
Signature Global Promoters:
Promotes of the company are Pradeep Kumar Aggarwal, Lalit Kumar Aggarwal, Ravi Aggarwal, and Devender Aggarwal. Apart from the above, Pradeep Kumar Aggarwal HUF, Lalit Kumar Aggarwal HUF, Ravi Aggarwal HUF, Devender Aggarwal HUF, and Sarvpriya Securities Private Limited are also promoters of the group.
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. Lalit Kumar Aggarwal is the founder, Vice Chairman, and Whole-time Director of the company. He has more than seven years of experience. 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.
Signature Global Financial analysis:
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.
Read financial details of the company here – “SIGNATURE GLOBAL Company Profile – Key products, finance, management team, strategic insights”
Signature Global IPO pricing and issue size:
Signature Globa real estate company is coming up with an initial public offering with both a fresh issue and an offer for sales. Fresh issues size is equity shares aggregating up to ₹7,50 crores. The offer for sale size is equity shares aggregating up to ₹2,50 crores. The total IPO issue size is up to INR 1000 crores of fresh issues. Within offer for sales, both promoters and investors are selling their holdings. Promoter Sarvpriya Securities Private Limited is selling equity shares aggregating up to INR 1,25 crores while investor ‘International Finance Corporation’ is offering equity shares aggregating up to INR 1,25 crores for sale. The face value of the Equity Shares is INR 1.
Signature Global is proposing its shares be listed on both the Stock Exchanges- BSE and NSE. Book Running Lead Managers of this IPO are ICICI SECURITIES LIMITED, AXIS CAPITAL LIMITED, and KOTAK MAHINDRA CAPITAL COMPANY LIMITED. The registrar for this IPO is LINK INTIME INDIA PRIVATE LIMITED.
The company’s equity shares outstanding before the initial public offer stand at 11,37,58,800 shares. Up to 75% of the offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, the “QIB Portion”). About 60% of the QIB Portion is to allocate to Anchor Investors on a discretionary basis out of which at least one-third shall be reserved for allocation to domestic Mutual Funds only. Up to 10% of the Offer shall be available for allocation to Retail Individual Bidders.
Competition for the company:
Signature global faces competition from both listed and unlisted companies. Major competitors include real estate developers DLF and EMAAR in the micro-markets that the company operates. The company also competition from various small unorganized operators in the residential segment.
Utilization of Net Proceeds:
Signature Global will not receive any amount out of the offer for sale. However, the company proposes to utilize the net proceeds of the fresh issue to reduce the debt while re-payment or pre-payment, in full or in part, of certain borrowings of the Company. The amount allocated for this purpose will be INR 330 crores. The total working capital requirement or loan in FY22 is INR 628 crores. The total outstanding amount of the company and its subsidiaries as of May 31, 2022, is INR 1622 crores.
The company is also planning to spend INR 140 crores to infusion funds in certain of our Subsidiaries, namely Signatureglobal Homes, Signature Infrabuild, Signatureglobal Developers, and Sternal Buildcon for re-payment or pre-payment, in full or in part, of certain borrowings availed by the respective Subsidiaries. The rest of the amount from net proceeds will be used for inorganic growth through land acquisitions and general corporate purposes.
|Subscription Dates||Coming soon|
|Anchor Investor Bidding Date||Coming soon|
|BID/OFFER Opens On||Coming soon|
|BID/OFFER closes On||Coming soon|
|Price Band||Coming soon|
|Offer for Sale||INR 250 Crores|
|Fresh Issue of Shares||INR 750 Crores|
|Equity Shares outstanding before the Issue||11,37,58,800 Equity shares|
|Minimum bid (lot size)||Coming soon|
|Face value||INR 1|
|Listing on||BSE and NSE|