Realty firm Signature Global likely to launch ₹1,000 cr IPO by December-end

The realty firm last week received a nod from capital markets regulator SEBI for its initial public offer (IPO) to raise up to ₹1,000 crore to clear debt and land acquisition. SEBI issued its observation letter on November 24, according to the latest update on the regulators’ website.

Earlier in July, Signature Global, which focuses on affordable and mid-housing segments, had filed the Draft Red Herring Prospectus (DRHP) with SEBI to launch its maiden public issue.

In SEBI’s parlance, an issuance of the observation letter implies the go-ahead from the regulator for the proposed IPO.

As per the DRHP, the IPO will comprise a fresh issue of equity shares worth up to ₹750 crore and an Offer for Sale (OFS) of up to ₹250 crore. Promoter Sarvpriya Securities and investor International Finance Corporation will sell equity shares worth up to ₹125 crore each.

Signature Global has proposed to utilise the net proceeds from the fresh issue towards payment of debt, inorganic growth through land acquisitions and general corporate purposes.

The funds will also be used to pay the debt of subsidiaries Signature Global Homes, Signature Infrabuild, Signature Global Developers and Sternal Buildcon.

The Delhi-NCR based Signature Global commenced operations in 2014 through its subsidiary Signature Builders with the launch of ‘Solera’ project on 6.13-acre of land in Gurugram, Haryana.

“We have grown our operations over the years and in less than a decade, and as of March 31, 2022, we had sold 23,453 residential and commercial units, all within Delhi-NCR region, with an aggregate saleable area of 14.59 million square feet,” the DRHP said.

The company’s sales bookings (net of cancellation) have grown at a Compound Annual Growth Rate (CAGR) of 142.62 per cent, from ₹440 crore in 2019-20 to ₹2,590 crore in 2021-22.

“As of March 31, 2022, we have sold 21,478 residential units with an average selling price of ₹2.81 million per unit,” it added.

“We have strategically focused on central and state government policies supporting affordable housing, specifically the Affordable Housing Policy (AHP), 2013 notified by the Town and Country Planning Department, Government of Haryana and the Affordable Plotted Housing Policy or the Deen Dayal Jan Awas Yojana (DDJAY-APHP),” the DRHP said.

These policies are focused on affordable and mid segment housing. On financial front, Signature Global’s total income rose to ₹939.6 crore in 2021-22 from ₹154.7 crore in the previous fiscal year.

Total expenses rose to ₹1,076 crore in last fiscal year from ₹246.65 crore a year ago. Signature Global posted a net loss of ₹115.5 crore during last financial year. Its net loss stood at ₹86.27 crore 2020-21. 

(With inputs from PTI)