The real estate sector is expected to grow at a CAGR of approximately 25.60% and reach $828.75 billion by 2028. Investors have an opportunity to be part of this real estate boom in the form of the latest IPO offering from Signature Global India Limited IPO.
Signature Global India Limited IPO will open for subscription from 20th September 2023 to 22nd September 2023.
Here are all the important details of Signature Global India Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Signature Global India Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are:
|IPO Opening Date||20th September 2023|
|IPO Closing Date||22nd September 2023|
|Issue Type||Book Built Issue IPO|
|Face Value of Shares||Re. 1 per share|
|IPO Price Band||Rs. 366 – Rs. 385 per share|
|IPO Size||Rs. 730 crores|
|Offer for Sale||Rs. 127 crores|
|Fresh Issue||Rs. 603 crores|
- IPO Dates
The important dates for Signature Global India Limited IPO are highlighted below:
|Opening date||20th September 2023|
|Closing Date||22nd September 2023|
|Allotment date||27th September 2023|
|Refund Date||29th September 2023|
|Share Credit Date||03rd October 2023|
|Listing Date||4th October 2023|
- IPO Lot Sizes
Investors can subscribe to Signature Global India Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
|Investments in lots||Minimum – 1 lot|
Maximum – 13 lots
|Investment amount||Minimum – Rs. 13,908 – 14,630|
Maximum – Rs. 1,90,190
|Shares||Minimum – 38|
Maximum – 494
- IPO Reservation
Here’s the summary of reservation for different applicant categories in this IPO:
|Category of Investor||Reservation Percentage|
|Retail Individual Investor||10%|
|QIB (Qualified Institutional Buyer)||75%|
|NII (Non-Institutional Bidders)||15%|
Signature Global India Limited IPO Objectives
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below,
- The proceeds will be used for repayment or partial pre-payment of the company’s borrowings.
- The company will further use the proceeds to infuse funds into specific subsidiaries (Signature Global Homes, Signature Global Developers, Signature Global Business Park, and Sternal Buildcon) for their borrowings’ repayment or partial pre-payment
- The balance proceeds will be used to pursue inorganic growth by acquiring land and addressing general corporate needs.
Top things to know about Signature Global India Limited IPO
Signature Global India Limited holds the position of being the largest real estate development firm in the National Capital Region of Delhi (Delhi NCR) for affordable and lower mid-range housing units (priced below ₹ 8 million) supplied from 2020 to March 31, 2023, boasting a significant 19% market share.
The company’s strategic focus centres on Affordable Housing (AH) within the Rs. 4 million price category and Middle Income Housing (MH) in the Rs. 4 million to Rs. 2.5 million price range, primarily driven by government policies at both the central and state levels, particularly in Haryana, where AH and MH development is permitted under various policies.
The majority of our completed, ongoing, and upcoming projects are concentrated in Gurugram and Sohna, Haryana, accounting for 88.49% of our Saleable Area as of March 31, 2023, and are predominantly carried out under the Affordable Housing Policy (AHP) or Deen Dayal Jan Awas Yojana – Affordable Plotted Housing Policy (DDJAY – APHP). In Gurugram, the company has secured a 31% market share in the affordable and lower mid-range segments, and a 24% market share across all budget categories, spanning from 2020 to March 31, 2023.
The company has adopted an integrated real estate development model, equipped with in-house capabilities and resources to oversee projects from inception to completion, enabling us to offer projects at competitive price points. A key strength lies in our ability to efficiently execute projects on acquired land, with project launches typically occurring within 18 months of land acquisition. This approach has allowed for positive cash flow in a relatively short timeframe, supporting further development initiatives.
Signature Global India Limited has an extensive distribution network that is finely tuned to cater to our target customer segments, with 593 channel partners and a dedicated team of 41 direct sales employees and 100 employees handling indirect sales, as of March 31, 2023. This robust network has played a pivotal role in achieving our current scale of offerings. Additionally, we have harnessed technology effectively for inventory sales.
Is Signature Global India Limited profitable – Know the financial performance of Signature Global India Limited
Signature Global India Limited’s financials are given in the table below:
|Year||Assets (Rs. in cr)||Revenue (Rs. in cr)||Profit After Tax (Rs. in cr)||EPS (Diluted)||Net worth (Rs. in cr)||Total Borrowing (Rs. in cr)|
What are the strengths of Signature Global India Limited?
Some of the key strengths of Signature Global India Limited IPO that investors can take note of are
|Business model||The company manages a comprehensive distribution network tailored to specific customer segments and adeptly utilizes technology for streamlined inventory sales strategies.Signature Global India Limited is the foremost real estate developer in Delhi NCR for affordable and lower mid-range housing units, having completed projects spanning 7.64 million square feet and with 1.37 million square feet in ongoing projects.Signature global India Limited strategically focuses on the Affordable Housing (AH) and Middle Income Housing (MH) segments within the private category, leveraging an integrated development approach with in-house resources to offer competitive project pricing.|
What is the risk of investing in Signature Global India Limited IPO?
Here are some of the risks that investors of Signature Global India Limited IPO should know:
|Business viability and profitability||Potential removal of incentives from the Haryana Affordable Housing Policy, 2013, and the Deen Dayal Jan Awas Yojna may have adverse effects on the company’s business, which heavily depends on the residential development sector, especially in affordable housing.The company’s funding needs and intended utilization of Net Proceeds are determined by management estimates and may be altered by various factors, while not meeting project completion deadlines could substantially harm the company’s business.|
|Other concerns||Significant increases in construction-related costs or supply disruptions and land price hikes or scarcity could have adverse effects on the company’s estimated construction expenses and revenue, respectively.|
What is the Grey Market Premium (GMP) of Signature Global India Limited?
As of September 18th, 2023, the grey market premium for the shares of Signatureglobal India Limited IPO is Rs. 40 as per market observers. This means the shares are expected to list at a premium of Rs. 40 over the listing cap price of Rs. 385.
Is Signature Global India Limited IPO safe for investment?
The company is a dominant name in the construction of affordable housing in the Delhi NCR Region. However, the company has also suffered losses in the past and is in the process of recovering them fully. Investors should, therefore, focus on the core fundamentals of the company and its historical performance to evaluate the investement opportunity.
How to apply for Signature Global India Limited IPO?
Investors can invest in this IPO through the Fisdom app.