Signature Global to float its IPO on Sept 20 to raise Rs 730 crore

New Delhi, Real estate developer Signature Global (India) will float its public issue on September 20 to raise Rs 730 crore. The price band will be announced in the coming days.

The IPO of the International Finance Corporation-backed affordable housing company will consist of fresh shares worth Rs 603 crore from the company and an offer-for-sale (OFS) of Rs 127 crore from the International Finance Corporation (IFC). The offer will close on September 22. The issue size has been reduced at the time of filing the draft IPO papers from Rs 1,000 crore in July last year.

IFC held 5.38 percent in the company. The outstanding compulsory convertible debentures (CCDs) that had been issued to the IFC as well as HDFC Capital Affordable Real Estate Fund 1 (HCARE) were converted by the company into equity shares prior to filing of the draft red herring prospectus with the RoC which will improve the company’s debt-equity ratio.

SignatureGlobal (India) Ltd. is the largest real estate development company in the National Capital Region of Delhi (“Delhi NCR”) in the affordable and lower mid segment housing in terms of units supplied (in the below ? 8 million price category) between 2020 and the three months ended March 31, 2023, with a market share of 19%. (Source: Anarock Report).

The Company commenced operations in 2014 through its Subsidiary, Signature Builders Private Limited, with the launch of our Solera project on 6.13 acres of land in Gurugram, Haryana. It has grown its operations over the years and in less than a decade, and as of March 31, 2023, it had sold 27,965 residential and commercial units, all within the Delhi NCR region, with an aggregate Saleable Area of 18.90 million square feet.

The Company’s Sales (net of cancellation) have grown at a compounded annual growth rate (“CAGR”) of 42.46%, from ? 16,902.74 million in Fiscal 2021 to ? 34,305.84 million in Fiscal 2023. As of March 31, 2023, it sold 25,089 residential units with an average selling price of ? 3.60 million per unit.

SignatureGlobal (India) adopted an integrated real estate development model, with in-house capabilities and resources to execute projects from inception to completion which enables it to offer projects at competitive prices.

Among its core strengths is the Company’s ability to efficiently turnaround projects on land that it ties-up and it typically launched projects within a period of 18 months from the date of acquisition of the land.