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Signature Global IPO to open on September 20; check price band, lot size and other details

Signature Global IPO

Signature Global IPO – Signature Global’s initial public offering (IPO) will begin bidding on Wednesday. The price band for the issue has been set by the real estate developer at Rs 366-385 per share. Potential investors may bid for a minimum of one lot of 38 equity shares and subsequent multiples. The three-day bidding period will end on Friday, September 22. 

Signature Global expects to raise Rs 730 crore via its initial stake sale, which will include a fresh issue of Rs 603 crore, while its shareholder International Finance Corporation, a World Bank Group member, would sell shares worth Rs 127 crore through the offer-for-sale (OFS) mechanism. Previously, the company planned to raise approximately Rs 1,000 crore through primary markets. 

Signature Global claims to be the largest real estate development company in Delhi’s National Capital Region (Delhi NCR) in the inexpensive and lower middle-income housing segments. The company primarily builds residential, commercial, and retail buildings in Gurugram, Karnal, and Ghaziabad. The net revenues from the new share sale would be used to repay debts totaling Rs 432 crore.  The remaining funds will be used for inorganic growth via land acquisitions and general company objectives.  

Signature Global IPO

The OFS amount will be paid to the company’s selling shareholder. The Anchor Book will be released on Monday, September 18. The company reported a net loss of Rs 63.7 crore for the fiscal year ended March 31, with consolidated revenue from operations of Rs 1,553.6 crore. However, its net loss in the preceding fiscal year was Rs 115.5 crore, with income from operations of Rs 901.3 crore. The company has reserved 75% of the net offer for qualified institutional bids (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. 

The issue’s book-running lead managers are ICICI Securities, Axis Capital, and Kotak Mahindra Capital Company, and the registrar is Link Intime India. The company’s shares will be listed on the main boards of both the BSE and the NSE