Signature Global to hit capital markets with Rs 730 crore IPO on Sept 20

Realty firm Signature Global (India) Ltd will hit the capital markets on September 20 with its Initial Public Offering (IPO) to raise Rs 730 crore. In July last year, the Delhi-based firm had filed the Draft Red Herring Prospectus (DRHP) with capital markets regulator Sebi.

According to the Red Herring Prospectus (RHP), which was filed on Tuesday, the total size of the IPO is up to Rs 730 crore, comprising fresh issue of shares up to Rs 603 crore and offer for sale of up to Rs 127 crore.

The company said it plans to utilise Rs 264 crore for repayment or prepayment of certain borrowings, in full or in part. It plans to infuse Rs 168 crore into subsidiaries for repayment or prepayment, in full or in part, certain borrowings availed of by them. The remaining fund will be used for inorganic growth through land acquisitions and general corporate purposes.

Signature Global started 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 sold 23,453 residential and commercial units, all in the Delhi-NCR, with an aggregate saleable area of 14.59 million sq ft," the DRHP said.

The company's sales bookings (net of cancellation) have grown at a compounded annual growth rate of 142.62 per cent, from Rs 440 crore in 2019-2020 to Rs 2,590 crore in 2021-22, it said.

As of March 31, 2022, we have sold 21,478 residential units with an average selling price of Rs 28.1 lakh per unit, as per the DRHP.

"We have strategically focused on central and state government policies supporting affordable housing, specifically the Affordable Housing Policy, 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," it added.

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