Signature Global raises Rs 318.5 cr from anchor investors ahead of IPO

Realty firm Signature Global, which is launching its maiden public issue on Wednesday, has raised Rs 318.5 crore from anchor investors, including Nomura.

In a regulatory filing, Signature Global informed that under Anchor Investors (AIs) portion in the public issue, 82,72,700 equity shares have been subscribed at Rs 385 per equity share.
 

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

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 are other major investors.
 

Signature Global -- backed by HDFC Capital and IFC -- will hit capital markets on September 20 with its IPO to raise Rs 730 crore. The offer will close on September 22.
 

In July last year, Signature Global had filed the Draft Red Herring Prospectus (DRHP) with capital markets regulator Sebi to launch its IPO.
 

The company has fixed the price band at Rs 366-385 per share for its maiden public issue.
 

According to the red herring prospectus (RHP) filed recently, the total size of the IPO is up to Rs 730 crore, comprising fresh issue of shares worth up to Rs 603 crore and an offer for sale (OFS) of up to Rs 127 crore. The bulk of the proceeds will be used to reduce debt.
 

Signature Global achieved 32 per cent growth in sales bookings to Rs 3,430.58 crore in last fiscal year on strong housing demand.
 

Gurugram-based Signature Global, which focuses on affordable and mid-income housing segment, had clocked Rs 2,590 crore worth sales bookings in the previous fiscal.
 

Signature Global's collection from customers rose to Rs 1,920 crore last fiscal from Rs 1,282.14 crore in the previous year.

It launched 6.21 million square feet area during 2022-23 as against 4.21 million square feet in the previous year.
 

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

"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 had told reporters recently.
 

The balance fund will be used for inorganic growth through land acquisitions and general corporate purposes, he had said.

At present, the promoter group holds 78.35 per cent stake in the company. Their shareholding will come down to around 69-70 per cent post listing.
 

Through OFS, International Finance Corporation is selling its shares partly. At present, IFC holds 5.38 per cent stake in the company.
 

As per the RHP, the company's total income rose to Rs 1,585.87 crore last fiscal from Rs 939.60 crore in the previous year.

Net loss narrowed to Rs 63.71 crore in 2022-23 from Rs 115.5 crore in the previous year.
 

Signature Global commenced operations in 2014 through its subsidiary Signature Builders Pvt Ltd with the launch of 'Solera' project on a 6.13-acre land in Gurugram, Haryana.
 

As of March 31, 2023, it had sold 27,965 residential and commercial units, all within Delhi-NCR, with an aggregate saleable area of 18.90 million square feet.
 

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