Signature Global’s Rs 730 crore IPO subscribed 11.88 times on last day of offer, ET RealEstate

September 22, 2023

NEW DELHI: The Initial Public Offer (IPO) of Signature Global (India) was subscribed 11.88 times on the final day of subscription on Friday, helped by encouraging participation from institutional investors. The public issue received bids for 13,36,05,074 shares against 1,12,43,196 shares on offer, as per NSE data.

The portion for non-institutional investors was subscribed 13.54 times while the Qualified Institutional Buyers (QIBs) part received 12.71 times subscription. The category for Retail Individual Investors (RIIs) was subscribed 6.82 times.

The IPO of Signature Global was subscribed 1.61 times on the second day of bidding on Thursday.

The total size of the IPO is up to Rs 730 crore, with a fresh issue of shares worth up to Rs 603 crore and an Offer for Sale (OFS) of up to Rs 127 crore.

The price band for the offer was Rs 366-385 per share. Delhi-NCR-based Signature Global has raised Rs 318.5 crore from anchor investors, including Nomura.

In a regulatory filing late Monday, Signature Global informed that under the Anchor Investors (AIs) portion in the public issue, 82,72,700 equity shares have been subscribed at Rs 385 per equity share.

Signature Global — backed by HDFC Capital and IFC — had in July last year filed the Draft Red Herring Prospectus (DRHP) with capital markets regulator Sebi to launch its IPO.

According to the Red Herring Prospectus (RHP) filed recently, the bulk of the proceeds will be used to reduce debt.

“Our net debt stood at around Rs 1,100 crore at the end of the last fiscal year. We propose to utilise Rs 432 crore for debt reduction,” Signature Global Chairman Pradeep Aggarwal told reporters recently.

The balance fund will be used for inorganic growth through land acquisitions and general corporate purposes.

At present, the promoter group holds a 78.35 per cent stake in the company. Their shareholding will come down to around 69-70 per cent in the company post-listing.

Signature Global, which focuses on the affordable and mid-income housing segment, had clocked Rs 2,590 crore worth of sales bookings in the preceding fiscal.

Signature Global commenced operations in 2014.

As of March 31, 2023, it has sold 27,965 residential and commercial units, all within Delhi-NCR, with an aggregate saleable area of 18.90 million square feet.

ICICI Securities, Axis Capital and Kotak Mahindra Capital Company were the managers to the offer.

  • Published On Sep 22, 2023 at 07:30 PM IST

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