Delhi-NCR based real estate developer Signature Global plans to develop residential projects comprising around 21 million square feet (msf) in the next six to seven years, the company’s Chief Executive Officer (CEO), Rajat Khaturia, told Moneycontrol.
Signature Global, which is set to launch its IPO on September 20, will develop 19 affordable and mid-income projects in Gurugram and adjoining areas, like Sohna Elevated Road, Manesar, etc.
“We will be developing 21.29 million square feet of affordable housing for the mid-income segment over 379.07 acres of land. The bulk of this land will be developed in the next six to seven years. Roughly 17.2 msf across 217 acres is already under development in our existing projects,” Khaturia said.
The company develops affordable group housing for the mid-income segment. According to the Affordable Housing Policy, 2013, of Haryana, the per square foot (psf) rate for apartments under this scheme is capped at Rs 5,200.
According to the Red Herring Prospectus (RHP) issued by the company, as of March 31, 2023, the company had completed 12 projects spread over 94.68 acres and an aggregate saleable area of 6.15 msf, and had sold 10,737 units. The firm’s sales had grown at a CAGR of 42 percent between FY20-21 and FY22-23, and stood at Rs 3,430.6 crore last fiscal.
The public issue will have new shares worth Rs 603 crore and will also include an offer-for-sale (OFS) of Rs 127 crore worth of shares belonging to the International Finance Corporation. The price band is set at Rs 366-385 per share. The issue will start on September 20 and close on September 22.
Khaturia said the company’s objective is that it should not take more than 18 months to launch a project after the land has been bought. He added that along with other locations, the three main areas where its projects will come up are Gurugram sectors 37D, 71, and areas along the Sohna Elevated Road.
“The projects along the Sohna Elevated Road will comprise a total area of about 138 acres, in sector 37D it is around 25 acres, while in sector 71 it is likely to be around 40 acres,” he said.
Also Read: IPO-bound Signature Global aims to be among top-5 real estate players
He explained that Signature Global uses aluminium foam sheets, which reduces the cost of construction and helps make the homes affordable.
Khaturia added that the company has no plans to expand to other states, nor other areas of Delhi-NCR like Noida, Faridabad, Greater Noida, etc.
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