The public issue of Signature Global India received a decent response from investors on the first day of bidding, which was much better than Sai Silks (Kalamandir) which witnessed a 7 percent subscription. Both the public issues opened on September 20, though they are from different industries.
The initial public offering was subscribed 54 percent with bids for 60.4 lakh equity shares against an IPO size of 1.12 crore equity shares, as per the subscription data available with the exchanges.
Retail investors have bought 89 percent equity shares of the allotted quota which is 10 percent of the total offer size, while high networth individuals (non-institutional investors) were aggressive on the debut, subscribing 1.42 times the reserved portion which is 15 percent of the IPO size.
Qualified institutional investors (QIB) have bid for 0.1 percent shares of the part set aside for them.
The Delhi NCR-based real estate developer, which has reserved 75 percent of the offer for QIB, has already raised Rs 318 crore from anchor investors on September 18, a day before the issue opening, including Morgan Stanley, Nomura Trust, Troo Capital, Segantii India Mauritius, BNP Paribas Arbitrage - ODI, Goldman Sachs, Copthall Mauritius Investments, Kotak Mahindra Trustee, Nippon India, and Max Life Insurance Company.
The company aims to raise Rs 730 crore through the public issue at the upper end of the price band of Rs 366-385 per share.
Also read: Signature Global IPO: 10 things to know before subscribing to Rs 730-crore issue
The offer comprises a fresh issue of Rs 603 crore worth of shares, and an offer-for-sale of 32.98 lakh shares worth Rs 127 crore by International Finance Corporation (IFC). IFC holds 5.38 percent or 67.14 lakh shares in the company.
The company will repay its own debt, amounting to Rs 264 crore, and its four subsidiaries, at Rs 168 crore, from the net fresh issue proceeds. The remaining money will be utilised for inorganic growth through land acquisitions and general corporate purposes.
Click Here To Read Moneycontrol's Exclusive Note on Signature Global IPO
The affordable housing company had sold 27,965 residential and commercial units since 2014 till March 2023, all within the Delhi NCR region, with a total saleable area of 18.90 million square feet. Its sales (net of cancellation) grew at a CAGR (compounded annual growth rate) of 42.46 percent during FY21-FY23, to Rs 3,430.58 crore in FY23.
All its projects are located in the Delhi NCR region. Its 29 ongoing projects have a saleable area of 17.2 million square feet and 19 forthcoming projects have 21.29 million square feet of saleable area.
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