Signature Global IPO got approval from market regulator SEBI. 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 ‘Signature global (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 IPO Review: Financial analysis:
Signature global’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 price and issue size:
Signature Global 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 ₹750 crores. The offer for sale size is equity shares aggregating up to ₹250 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 125 crores while investor ‘International Finance Corporation’ is offering equity shares aggregating up to INR 125 crores for sale. The face value of the Equity Shares is INR 1. Signature Global price band is yet to come.
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.
Signature Global Peers
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 IPO
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 Signature global Homes, Signature Infrabuild, Signature global 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.
Signature Global IPO Details
| Signature Global IPO Details | Signature Global IPO Price, date, allotment status |
|---|---|
| Signature Global IPO Subscription Dates | Coming soon |
| Anchor Investor Bidding Date | Coming soon |
| BID/OFFER Opens On | Coming soon |
| BID/OFFER closes On | Coming soon |
| Signature Global IPO Price Band | Coming soon |
| Signature Global IPO Offer for Sale | INR 250 Crores |
| Signature Global IPO Fresh Issue of Shares | INR 750 Crores |
| Equity Shares outstanding before the Issue | 11,37,58,800 Equity shares |
| Signature Global IPO Minimum bid (lot size) | Coming soon |
| Signature Global IPO Face value | INR 1 |
| Signature Global IPO Listing on | BSE and NSE |
Signature Global IPO Review: Do you invest?
While doing the Signature Global IPO Review, we found the below points that may help you to take a call on to invest in the company’s IPO.
- The company has a strong brand name linked with good projects in Delhi NCR region.
- Signature global focuses on affordable and mid-segment housing segments, which is a dream project of government of India.
- Strong market share of 20% in Delhi NCR region.
- The company is strong financial standpoint. The net cash generated from operation activities has gone up from INR 983.54 million in FY 2020 to INR 2,084.01 in FY 2022.
- However, EPS is negative through out the period mentioned here.
- Net Asset Value (“NAV”) per Equity Share of face value of ₹1 each is negative i.e. (30.96) in FY 2022.
- Signature global is confined in the Delhi NCR region only, does not pan India presence.
- Other listed competitors are there such as DLF properties, Godrej properties with strong brand value and pan India presence.
- Again, in a scenario where global economy is slowing, interest rate is rising or at high level, real estate business is risky bet.
- As a retail investor I would not put much in this IPO at this time. I will wait for the market to settle down. I may get much opportunity in the market in this domain.
Suggested Readings
We endeavor to help you to understand different aspects of a company before you invest in the company’s IPO. Here are some suggested readings on company insights BIBA Fashion Limited IPO, SSKL IPO, Mankind Pharma IPO.
Signature Global head office and lead managers of the IPO
| Corporate Office Contact Details | Lead Managers |
| Unit No.101, Ground Floor, Tower-A, Signature Tower South City-1, Gurugram, Haryana 122 001, India cs@signatureglobal.in www.signatureglobal.in Telephone Corporate Office: +91 124 4398 011 | 1. ICICI Securities Limited 2. KOTAK MAHINDRA CAPITAL COMPANY LIMITED 3. AXIS CAPITAL LIMITED |
Signature Global IPO allotment status
Signature Global IPO allotment status will be available on Link intime Limited website. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to E-mail: Signatureglobal.ipo@linkintime.co.in, Tel: +91 22 4918 6200.
Signature Global IPO Grey Market Premium (GMP)
| Date | Signature Global IPO GMP | IPO Price |