Signature Global lists at Rs 445, over 15% premium to IPO price

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Shares of Delhi NCR-based housing company Signature Global made a decent debut at 15.58 percent premium on the NSE and BSE on September 27. The stock started trading at Rs 444 on the NSE and Rs 445 on the BSE, against issue price of Rs 385 per share.

The listing was in-line with analyst expectations as the issue was well received by investors.

The public issue was subscribed 12.5 times, with retail portion subscribed 7.17 times, qualified institutional buyers portion 13.37 times and non-institutional investors 14.24 times. The offer comprised a fresh issue of shares worth Rs 603 crore and an offer-for-sale of shares worth Rs 127 crore by the International Finance Corporation.

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The company’s net loss narrowed to Rs 63.7 crore in FY23 from Rs 115.5 crore in FY22. Total income jumped to Rs 1,585.88 crore in the year ended March 2023 from Rs 939.6 crore in the year-ago period.

The real- estate company, focused on affordable housing in the Delhi-National Capital Region (NCR), has now made a pivot to the mid-income housing segment.

This shift is a result of COVID-19, following which people are wanting bigger homes, Signature Global founder and chairman Pradeep Aggarwal, and chief executive officer, Rajat Kathuria, told Moneycontrol in an exclusive interview.

Signature Global will use the IPO proceeds of Rs 730 crore for the re-payment or pre-payment, in full or in part, of certain borrowings and will infuse funds in certain of its subsidiaries, namely Signatureglobal Homes, Signatureglobal Developers, Signatureglobal Business Park and Sternal Buildcon for re-payment or pre-payment. The remaining funds will be utilised for inorganic growth through land acquisitions and general corporate purposes.

Its net debt stood at Rs 1,100 crore at the end of the last fiscal year.