Realty firm Signature Global Ltd, which mainly focuses on affordable housing, is likely to launch its Initial Public Offer (IPO) by end of this month to raise up to Rs 1,000 crore.
On November 24, Signature Global (India) Ltd received a nod from capital markets regulator Sebi for its IPO. In July, Signature Global had filed the Draft Red Herring Prospectus (DRHP) with Sebi to launch its maiden public issue.
According to sources, the company will soon file an updated DRHP and is looking to hit the capital market with its IPO by end of this month. As per the DRHP, the public issue comprises 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. 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 Rs 440 crore in 2019-20 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,” 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 Rs 939.6 crore in 2021-22 from Rs 154.7 crore in the previous fiscal year.
Total expenses rose to Rs 1,076 crore in last fiscal year from Rs 246.65 crore a year ago. Signature Global posted a net loss of Rs 115.5 crore during last financial year. Its net loss stood at Rs 86.27 crore 2020-21.
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