Signature Global Ltd IPO: Check Issue Size, Date and Price Band
Introduction:
The Signature Global (India) IPO worth Rs. 730 crores closed for subscription on Friday, 22 September 2023. The Initial Public Offering (IPO) was oversubscribed by 12.50 times, with the retail quota getting subscribed by 7.15 times. The focus now shifts to the allocation and listing of the shares in the secondary markets.
Continue reading to know more about the Signature Global (India) IPO, including the details of the issuing company, IPO issue price, the latest grey market premium, and more.
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About the Signature Global Ltd:
Signature Global (India) Limited is a leading real estate developer with its business primarily concentrated in the National Capital Region (NCR) and Delhi. The company was incorporated in the year 2000 but commenced its real estate business only in 2014. It focuses predominantly on providing affordable housing units to families belonging to the lower and middle-income segments.
As of 31 March 2023, Signature Global India had sold 27,965 real estate units across Delhi, Gurugram, and Noida. It has been the largest real estate company in the capital city in terms of the units supplied in the affordable, lower, and mid-segment housing categories with a market share of more than 19% since 2020.
Currently, the company has several under-construction projects in various parts of Delhi NCR, including Gurugram and Sohana.
Key Strengths of Signature Global Ltd:
Below are the key strengths of Signature Global (India) Ltd. as highlighted in its Red Herring Prospectus (RHP):
- It is the largest real estate developer in Delhi NCR in the affordable housing segment
- A well-renowned brand in Delhi NCR with a strong distribution network and digital marketing capabilities
- Its projects are known for offering top-class amenities with sustainable practices, such as solar panels, LED lighting, etc.
- It offers standard housing units under government initiatives like PMAY and DDJAY
- Low debt levels and positive operating cash flow
- Boasts experienced promoters and a highly-qualified management team
- It can scale up rapidly
Key Risks or Weaknesses Highlighted:
The key risks or weakness associated with Signature Global (India) Ltd. include:
- The business is only limited to the Delhi NCR region
- Closure of government programs like PMAY can impact the business
- Operates in a capital-intensive industry
- Business is subject to several statutory and regulatory approvals
- A rise in the interest rate or inflation can lower the company’s profit
- The company has suffered losses in the last three financial years
- The presence of so many competitors is a threat
Financial Snapshot of Signature Global Ltd:
The table below depicts the financials of Signature Global (India) Limited for the last three financial years. All details are as per the company’s RHP dated 12 September 2023 on the Securities and Exchange Board of India (SEBI) website:
| Particulars | As of and for FY Ending March 31 | ||
| 2023 | 2022 | 2021 | |
| Equity Share Capital | 12 | 11 | 6 |
| Net Worth | 48 | -352 | -207 |
| Total Borrowings | 1710 | 1158 | 1176 |
| Revenue From Operations | 1554 | 901 | 82 |
| Net Profit/Loss | -64 | -116 | -86 |
| Earnings Per Share (Diluted) | -5 | -10 | -8 |
| Net Asset Value (In Rs/share) | 4 | -31 | -18 |
*Amount in Rs. Crores
Details of the IPO:
Signature Global (India) IPO opened for public subscription on Wednesday, 20 September 2023, and closed on Friday, 22 September 2023. It attracted good bidding from investors, with the retail quota being subscribed by 7.15 times, the Qualified Institutional Buyer’s (QIB’s) quota getting subscribed by 13.37 times, and the Non-Institutional Investor’s (NII’s) quota getting subscribed by 14.24 times.
The allotment of shares is expected to occur on Tuesday, 27 September 2023, and the refund will be initiated by 28 September. The shares will be listed on the stock exchanges on 3 October 2023.
At the issue price of Rs. 385, the company will generate Rs. 730 crores from the IPO. The other IPO details are as follows:
| IPO Date | 20 Sept to 22 Sept 2023 |
| Listing Date | 03-Oct-23 |
| Face Value | Re. 1 per equity share |
| Price Band | Rs. 366 to Rs. 385 per share |
| Lot Size | 38 shares |
| Total Issue Size | Rs. 730 crores |
| Fresh Issue | Rs. 600 crores |
| Offer for Sale | Rs. 130 crores |
| Issue Type | Book-built IPO |
| Listing At | NSE, BSE |
How to check allotment status and GMP?
As of 22 September 2023, Signature Global (India) shares commanded a Grey Market Premium (GMP) of Rs. 31 per share, indicating a listing gain of around 8% for investors. However, the GMP can rise or decline quickly before listing the shares.
Suppose you have applied for the Signature Global (India) IPO. In that case, you can check your allotment status on the website of the BSE or Link Intime India Private Limited, which is the registrar of the IPO.
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