Signature Global IPO

Signature Global IPO

Signature Global’s IPO aims to raise INR 1,000 Crore, with a fresh issue of INR 750 Crore and an offer for sale (OFS) of INR 250 Crore by the promoters. The IPO’s main objective is to prepay or repay a portion of the company’s outstanding borrowings and to meet common corporate objectives​​​.

Signature Global IPO – Important Details

Signature Global IPO Date September 20, 2023 to September 22, 2023
Signature Global IPO Listing Date September 27, 2023
Signature Global IPO Price INR 366 to 385 per share
Signature Global IPO Lot Size 38 Shares
Signature Global IPO Total Issue Size Approx ₹1000 Crores
Signature Global IPO Basis of Allotment September 27, 2023
Signature Global IPO Initiation of Refunds September 29, 2023
Signature Global IPO Credit of Shares to Demat October 3, 2023
Signature Global IPO Issue Type Book Built Issue IPO
Signature Global IPO Listing At BSE, NSE

Signature Global IPO – Company Profile

Signature Global, established in 2005, is a Gurgaon-based real estate development company steered by co-founders Amit Oberoi and Pradeep Aggarwal. Both founders have significant experience in the real estate industry, with Oberoi being an alumnus of the Indian Institute of Technology, Delhi, and Aggarwal, a graduate of the Indian Institute of Management, Ahmedabad.

Since its inception, the company has developed over 100 projects in the National Capital Region (NCR), collectively valued at over ₹10,000 crore. Signature Global prides itself on its commitment to quality and customer satisfaction. It has steadily built its reputation, gaining recognition through numerous accolades like the “Best Residential Developer” award at the CNBC Awaaz Real Estate Awards 2022 and ranked 1st in the “Top 100 Developers in India” by the Economic Times in 2022.

Signature Global IPO – Objective

The key objective behind Signature Global’s IPO is to support the company’s robust growth plans. With the capital raised, the company aims to:

  • Develop new projects: With a proven track record of over 100 successful projects in the NCR region, Signature Global plans to utilize the IPO proceeds to build more residential and commercial properties.
  • Acquire land: Land acquisition forms a significant part of their growth strategy. The additional funds will allow the company to secure prime lands strategically for future developments.
  • Expand operations: With a vision to become a pan-India company, the IPO funds will boost Signature Global’s expansion plans, enabling them to mark their presence in other key Indian markets.

Signature Global India Ltd IPO – Risks And Challenges

Investing in IPOs comes with its own set of risks and challenges. For Signature Global, these are some of the major risks and challenges:

  • Real Estate Market Fluctuations: The performance of Signature Global is highly dependent on the real estate market in India, particularly in the Delhi NCR region. Market fluctuations caused by economic changes, government policies, or other external factors could impact the company’s revenue and profitability.
  • Project Execution Risk: The timely completion and delivery of real estate projects is critical for Signature Global. Any delays in project execution due to legal hurdles, supply chain issues, labor shortages, or other unforeseen circumstances could affect the company’s reputation and financial performance.
  • High Debt Levels: As of FY 2022, Signature Global had a debt-to-equity ratio of 1.23. While the company plans to use part of the IPO proceeds to repay some of its debt, high debt levels can still threaten its financial stability.

Signature Global Peer Comparison

Company Total Income (₹ in million) Face Value per Equity Share (₹) P/E EPS (Basic) (₹) EPS (Diluted) (₹) RoNW (%) NAV per Equity Share (Basic) (₹)
Signatureglobal Limited 9,396.00 1 NA -10.23 -10.23 NA -30.96
DLF Limited 61,378.5 2 62.78 6.06 6.06 2.33% 146.90
Godrej Properties Limited 25,856.9 5 131.87 12.68 12.67 4.04% 312.09
Macrotech Developers Limited 95,791.7 10 42.82 26.28 26.25 9.98% 251.40
Prestige Estates Projects Limited 66,002 10 17.21 28.69 28.69 13.36% 226.85
Sobha Limited 28,216 10 57.59 12.32 12.32 4.65% 264.82

Signature Global Limited Financial Information

Particular As at 31 March 2020 As at 31 March 2021 As at 31 March 2022
Revenue (₹ in Million) 2,630.30 1,547.19 9,396.00
Equity (₹ in Million) 817.57 1,958.19 3,463.49
Expenses (₹ in Million) 3,375.33 2,466.55 10,760.17
Profit and Loss After Tax (₹ in Million) NA NA NA
RoNW (%) NA NA NA
Diluted EPS only (₹) 5.07 7.56 10.23
NAV per Equity Share (₹) 8.18 18.18 30.96
Total Assets (in million) 29,305.21 37,623.66 44,308.51
Total Liabilities (in million) 29,305.21 37,623.66 44,308.51

Signature Global Limited IPO – Industry & Market Potential

Signature Global operates in one of India’s most dynamic industries – real estate. The sector is poised for growth, with a projected Compound Annual Growth Rate (CAGR) of 12% over the next five years. Key growth drivers include rising disposable incomes, increasing urbanization, growing demand for housing, and government initiatives boosting the real estate sector.

Signature Global’s projects encompass residential, commercial, and landmark developments spread across prime locations in the NCR region. The company’s diversified project portfolio and its focus on quality make it well-positioned to harness the potential of India’s burgeoning real estate industry.

The company’s strategy of focusing on the affordable and mid-segment housing categories and the robust demand in the Delhi NCR region presents considerable market potential for Signature Global.

Key data points highlighting the market potential include:

  • The company held a market share of 19% in the affordable and mid-segment housing category (priced below INR 80 lakh) between 2019 and 2021.
  • In terms of sales in Gurugram, Signature Global had a market share of 40% in the affordable and mid segments and a 29% market share across all budget categories between 2019 and 2021.
  • The majority of its projects are located in Gurugram and Sohna in Haryana, with 84.58% of its saleable area in this region.

Signature Global India IPO – Type of Offer

Signature Global’s IPO combines a fresh issue and an offer for sale (OFS).

  • Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 750 Crore. This fund will fuel new projects and repay some of the company’s outstanding debts.
  • Offer For Sale (OFS): Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company, intending to raise INR 250 Crore. The specific number of shares and the sellers’ identities have not been disclosed as of now.

Therefore, the total money expected to be raised through this IPO is INR 1,000 Crore​1​.

Signature Global IPO Offer Size

The Signature Global IPO aims to raise a total of INR 1,000 Crore. This includes a fresh issue of INR 750 Crore and an offer for sale (OFS) of INR 250 Crore by the promoters. The funds from this IPO will be used to prepay or repay a portion of the company’s outstanding borrowings, fund new projects, and meet common corporate objectives​​.

Signature Global IPO Allotment Structure

The IPO allotment structure for Signature Global is planned as follows:

  • Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
  • Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lahks.
  • Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lahks.

How to apply for a Signature Global IPO through Alice Blue?

  • Select the IPO you wish to apply for from the list of open issues.
  • Once you have selected your preferred IPO, you can view all the details such as the issue open date, closing date, issue size, price, market lots, etc.
  • Enter the UPI ID linked to your personal bank account. The application may be subject to rejection if the applicant’s identity differs from the individual linked to the bank account used for the application.
  • When placing bids, only quantities that are multiples of the lot size are allowed. If you want to apply at the cut-off price, simply click the text box next to the ‘cut-off’ price. If you wish to place a bid at a different price, enter the desired price in the ‘Price’ field.
  • After completing all the steps, read the declaration and click ‘Submit’.

Additional Steps to Follow:

  • After submitting the request, you will receive a mandate request on your UPI application. Accept the mandate request. Sometimes, it may take a few hours to receive the request. This action will reserve the required amount for the application until the allotment date. If the quantity is allotted, the funds will be debited from your bank account, and the shares will be credited to your demat account at Alice Blue.
  • Upon submitting the IPO bid request, you will receive an SMS from the exchange to confirm your application.
  • To check the status of your application, you can select the applied IPO, and you will be able to see the most recent bids updated in your application.
  • If you do not receive an allotment, the blocked funds will be released on the allotment date. The list of IPOs can also be viewed on the NSE website.

How to Check Signature Global IPO Allotment Status on Alice Blue?

To verify the IPO allotment status for your PAN numb