Signoria Creation is coming up with an IPO worth INR 9.28 crores, consisting of a fresh issue of 14.28 lakh shares. The company plans to utilize the funds raised to meet the working capital requirement.
Signoria Creation Limited IPO – Important Details
| Signoria Creation IPO Date | March 12, 2024 to March 14, 2024 |
| Signoria Creation IPO Listing Date | March 19, 2024 |
| Signoria Creation IPO Price | INR 61 to 65 per share |
| Signoria Creation IPO Lot Size | 2000 Shares |
| Signoria Creation IPO Total Issue Size | INR 9.28 crores |
| Signoria Creation IPO Basis of Allotment | March 15, 2024 |
| Signoria Creation IPO Initiation of Refunds | March 18, 2024 |
| Signoria Creation IPO Credit of Shares to Demat | March 18, 2024 |
| Signoria Creation IPO Issue Type | Book Built Issue IPO |
| Signoria Creation IPO Listing At | NSE SME |
Signoria Creation Limited IPO – Company Profile
The Company Signoria Creation Limited manufactures and markets women’s apparel like Kurtis, pants, tops, Co-ord Sets, dupattas, and Gowns. The company is popularly known and identified in the apparel market by the brand name “Signoria.” The brand is known for its Kurtis, with traditional designs having a wide range of colours, patterns, and sizes. The Company caters to those who are looking for clothing that is comfortable, stylish, and trendy. The clothes are perfect for women who want to make a statement and stand out from the crowd.
The company is managed by the promoters and directors, Mr. Vasudev Agarwal, who has an experience of around 7 years, and Mrs. Babita Agarwal has around 4 years of experience. Mr. Mohit Agarwal has experience and exposure of around 7 years in the Textile and apparel industry, and the President, Ms. Kritika Chachan has an experience of around 4 years in the cloth industry.
The manufacturing unit-I is situated at 324, Ayekar Nagar II, Near RICCO Industrial Area, Mansarovar, Jaipur, Rajasthan, and unit-II is situated at H1-74, RIICO Industrial Area, Mansarovar, Jaipur.
Signoria Creation IPO – Fundamental Analysis
Signoria Creation Ltd’s IPO reveals significant growth in revenue and equity, with a fluctuating profitability trend. Despite recent dips, the company shows potential, warranting a cautious investment approach considering its varying financial performance and increasing leverage.
Revenue Growth:
The company witnessed a significant increase in revenue from ₹1,181.60 lakhs in FY2022 to ₹1,914.92 lakhs in FY2023. However, there’s a notable drop in revenue to ₹652.85 lakhs by September 2023, suggesting potential seasonal fluctuations or market challenges.
Equity Growth:
Equity has seen a substantial increase, indicating investor confidence and potential capital injections to support growth. The growth from ₹150.88 lakhs in FY2022 to ₹647.25 lakhs by September 2023 highlights a solid backing.
Profitability:
Profit after tax improved significantly in FY2023 but saw a reduction by September 2023. This fluctuation in profitability, especially the decrease in RoNW to 9.96%, might concern investors looking for consistent performance.
Diluted EPS:
The EPS saw a significant rise in FY2023 but decreased in the following half-year, reflecting the observed revenue and profitability trends.
Asset and Liability Management:
Total assets have more than doubled, indicating business expansion. However, liabilities have also increased, raising the debt-equity ratio, suggesting the company is leveraging to fuel its growth.
Liquidity and Inventory Management:
The current ratio indicates a healthy liquidity position, although it dips by September 2023. The inventory turnover ratio’s decrease suggests slower inventory movement, which could impact cash flow.
Signoria Creation Ltd IPO Financial Information
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 September 2023 |
| Revenue (₹ in lakhs) | 1,181.60 | 1,914.92 | 652.85 |
| Equity (₹ in lakhs) | 150.88 | 583.23 | 647.25 |
| Expenses (₹ in lakhs) | 1,088.18 | 1,604.06 | 557.05 |
| Profit and Loss After Tax (₹ in lakhs) | 67.53 | 231.05 | 64.52 |
| RoNW (%) | 44.76% | 39.62% | 9.96% |
| Diluted EPS only (₹) | 13.51 | 27.70 | 5.81 |
| NAV per Equity Share (₹) | 30.18 | 52.54 | 58.36 |
| Total Assets (in lakhs) | 950.76 | 2,334.92 | 2,614.56 |
| Total Liabilities (in lakhs) | 799.88 | 1,751.69 | 1,966.81 |
| Debt Equity Ratio (in times) | 2.50 | 1.80 | 1.95 |
| Current Ratio (in times) | 1.77 | 1.90 | 1.50 |
| Inventory Turnover Ratio (in times) | 2.72 | 4.05 | 1.36 |
Signoria Creation Ltd IPO Peer Comparison
Signoria Creation Ltd, with a total revenue of ₹1914.92 lakhs and an RoNW of 39.62%, stands out against Nandani Creations Limited, showcasing higher profitability and a stronger return on equity, despite a lower NAV per equity share.
| Company | Total Revenue (₹ in lakhs) | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Signoria Creation Limited | 1914.92 | 10.41 | 10.41 | 39.62% | 52.54 |
| Nandani Creations Limited | 4475.61 | 0.11 | 0.11 | 0.39% | 21.59 |
Signoria Creation IPO Objective
The main objective of Signoria’s IPO is to fund working capital requirements, the company aims to utilize INR 6.27 crores for expanding operations, supporting increased production and sales, and serving a larger customer base. The remaining funds will be allocated to general corporate purposes including strategic initiatives and acquisitions.
- To fund the working capital requirements: The expansion and increased business activities of the company required higher levels of working capital to support larger sales volumes, increased production, and serve a larger customer base. For this purpose, the company plans to utilize INR 6.27 crores.
- General Corporate Purpose: The Company plans to deploy the balance funds towards the general corporate goals, including but not restricted to strategic initiatives, partnerships, joint ventures and strategic entity/business acquisitions, branding, marketing, and new client referral fees meeting exigencies.
Signoria Creation Limited IPO Risks And Challenges
Signoria Limited faces risks from evolving market trends, consumer preferences, and competition beyond its control, potentially impacting financial performance. Reliance on six key products exposes vulnerability to market fluctuations in a highly competitive industry.
- Changes in market trends, fashion and consumer preferences, and competition increases that are largely beyond the company’s control could adversely affect the business, financial condition, results of operations, and prospects.
- The company’s reliance on six major products comprises substantial sales and any factor affecting the sales of these major products could have an adverse effect on the business.
- The company operates in a highly competitive market.
Signoria Creation IPO – Industry & Market Potential
The women’s apparel market is expected to grow from INR 1,63,291 Cr (US$ 21.8 Bn) in FY 2020 to INR 2,53,733 Cr (US$ 33.8 Bn) by the end of FY 2025. This market is projected to grow owing to factors like sustained growth of Indian daily wear; casualization of fashion leading to growth of new categories like fusion wear, denims, and loungewear; rising share of organized retail; design innovations and changing consumer demographics.
Indian apparel fashion is uniquely an India-focused opportunity and one that provides a natural and sustainable advantage to homegrown players to seize it. This advantage is reflected in the structure of the Indian wear.
Signoria Creation Ltd IPO – Type of Offer
Signoria Creation is set to launch an IPO valued at INR 9.28 crores, featuring a fresh issue of 14.28 lakh shares. The company intends to use the proceeds to fulfill its working capital needs.
Signoria Creation IPO Offer Size
The offer size of Signoria Creation Limited’s IPO is INR 9.28 crores. The net proceeds will be used to meet working capital needs.
Signoria Creation Limited IPO Allotment Structure
Signoria Creation’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for eligible employees.
● 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 lakhs.
● 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 lakhs.
● Eligible Employee Portion: A portion of the issue up to 72,000 shares is reserved for eligible employees.
How to apply for a Signoria Creation IPO?
To apply for the Signoria Creation IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
1. Check for IPO Details: Once your account is active, you can check for the Signoria Creation IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.
You can apply for the Signoria Creation IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Signoria Creation’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Signoria Creation IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Signoria Creation IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Signoria Creation IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Signoria Creation IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Signoria Creation Ltd IPO Offer Registrar
The registrar for the Signoria Creation Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S-2, 6th Floor, Pinnacle Business Park,
Mahakali Caves Road,
Next to Ahura Centre, Andheri (East), Mumbai – 400093
Website: www.bigshareonline.com
Email: [email protected]
Signoria Creation IPO – FAQs
The allotment date of the Signoria Creation Limited IPO is March 15, 2024.
The price band of the issue is INR 61-65 per share.
Signoria Creation is coming up with an IPO worth INR 9.28 crores, consisting of a fresh issue of 14.28 lakh shares. The company plans to utilize the funds raised to meet the working capital requirement.
The listing date of Signoria Creation’s IPO is Mach 19, 2024.
