Realty firm Signature Global (India) Ltd, which is planning to launch Rs 1,000-crore public issue, posted a net loss of Rs 115.5 crore during the last financial year. Its net loss stood at Rs 86.27 crore in the 2020-21 fiscal year. Its net loss stood at Rs 86.27 crore in the 2020-21 fiscal year.
Last month, the Delhi-based firm had filed the Draft Red Herring Prospectus (DRHP) with capital markets regulator Sebi to raise up to Rs 1,000 crore through an Initial Public Offering (IPO). "We incurred losses after tax of Rs (565.74) million, Rs (862.78) million and Rs (1,155.00) million for fiscal 2020, 2021 and 2022, respectively," Signature Global said in the DRHP.
However, total income rose to Rs 939.6 crore in the 2021-22 fiscal year from Rs 154.7 crore in the previous fiscal. Total expenses rose to Rs 1,076 crore in the last fiscal year from Rs 246.65 crore in the 2020-21 financial year. Signature Global focuses on affordable and mid-housing segments with a market share of 19 per cent.
As per the DRHP, the IPO will comprise a fresh issue of equity shares worth up to Rs 750 crore and an Offer for Sale (OFS) of up to Rs 250 crore. Promoter Sarvpriya Securities and investor International Finance Corporation will sell equity shares worth up to Rs 125 crore each. The company proposes to utilise the net proceeds from the fresh issue towards payment of the 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. Signature Global commenced operations in 2014 through its subsidiary Signature Builders Pvt Ltd with the launch of 'Solera' project on 6.13 acres 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 the 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 Compounded Annual Growth Rate (CAGR) of 142.62 per cent, from Rs 440 crore in 2019-2020 to Rs 2,590 crore in 2021-22.
"As of March 31, 2022, we have sold 21,478 residential units with an average selling price of Rs 2.81 million per unit. 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. Each of the policies is focused on affordable and mid segment housing.
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