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Signature Global raises Rs 318.5-Cr from anchor investors ahead of public issue

Real estate firm Signature Global has secured Rs 318.5 crore from anchor investors, including Nomura, for its upcoming maiden public issue on Wednesday. According to a regulatory filing by Signature Global, 82,72,700 equity shares under Anchor Investors’ (AIs) portion in the public issue have been subscribed for Rs 385 each.   

The Nomura Trust and Banking Co Ltd bought a maximum of 18,70,094 shares.

Other significant investors include Kotak Mahindra Trustee Co Ltd, Kotak India EQ Contra Fund, Quant Mutual Fund, Nippon India Equity Opportunities AIF, Bandhan Core Equity Fund, Morgan Stanley Asia, Societe Generale, BNP Paribas Arbitrage, and Goldman Sachs Singapore.

The IPO for Signature Global, backed by HDFC Capital and IFC, will launch on September 20 to raise Rs 730 crore.

To begin its initial public offering (IPO), Signature Global filed the Draft Red Herring Prospectus (DRHP) with the capital markets regulator Sebi in July last year.   

The company has set a price range of Rs 366-385 per share for its maiden public issue.   

Following a recently filed red herring prospectus (RHP), the IPO’s total size might reach Rs 730 crore, made up of an offer for sale (OFS) of up to Rs 127 crore and a fresh issue of shares up to Rs 603 crore. A significant portion of the proceeds raised will be used to reduce debt.   

On the back of robust housing demand, Signature Global saw a 32% increase in sales bookings to Rs 3430.58 crore in the last fiscal year.   

The Gurugram-based Signature Global recorded sales bookings totalling Rs 2,590 crore in the previous fiscal year. Signature Global focuses on the affordable and mid-income housing segment.   

In the previous fiscal year, Signature Global’s customer collections increased from Rs 1,282.14 to Rs 1,920 crore.   

During 2022–2023, it opened 6.21 million sq ft as opposed to 4.21 million sq ft in the previous year.   

In the last fiscal year, Signature Global delivered 4.01 million square feet, up from 3.03 million square feet.

“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.

He had stated that the remaining funds would be used for general corporate objectives and inorganic growth through land acquisitions.   

The promoter group currently owns a 78.35 per cent stake in the company. Their shareholding in the company will decline to 69 – 70 per cent in the listing.

International Finance Corporation is selling a portion of its shares through OFS. IFC currently owns a 5.38 per cent stake in the company.

The company’s total revenue increased last fiscal year from Rs 939.60 crore to Rs 1,585.87 crore, according to the RHP. 

The net loss from Rs 115.5 crore the previous year narrowed down to Rs 63.71 crore in the fiscal year 2022–23. 

With the opening of the “Solera” project on 6.13 acres of land in Gurugram, Haryana, Signature Global’s operations were launched in 2014 through its subsidiary Signature Builders Pvt Ltd.   

As of March 31, 2023, it had sold 27,965 residential and commercial units, totalling 18.90 million square feet, all located in the Delhi-NCR.   

As of March 31, 2023, it had sold 25,089 residential units, with an average selling price of Rs 36 lakh per unit.

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BRL Editorhttps://businessreviewlive.com
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