Upcoming IPO: A Detailed Look At The Signature Global Stock Offering

As Signature Global IPO rolls out, will you bet on the prospects of an affordable housing boom or be cautious about profitability?

Signature Global (India) Limited is a real estate company that is coming up with its Initial Public Offering (IPO). Let's look at the details of the IPO, followed by insights into the company and its financial performance.

• Signature Global is the market leader in the Delhi NCR affordable housing market

• The IPO opens today, so it is time for a quick IPO snapshot

• The company’s lack of profitability is a cause of concern

• The anchor investment in the IPO is impressive

Signature Global (India) IPO Details

• The IPO opens on 20 September 2023 and closes on 22 September 2023

• Allotment and refund will take place on 27 and 29 September, while demat credit of shares and listing will happen on 3 and 4 October 2023, respectively

• The shares of face value Rs 1 are priced between Rs 366 to Rs 385

• The lot size of the IPO is 38 shares

• The total IPO issue size is Rs 730 crores, with fresh issues of Rs 603 crores

• After the IPO, the promoter shareholding will reduce from 78.36% to 69.63%

• The objective of the IPO is borrowing repayment and prepayment, subsidiary funding, land acquisition, and general corporate purposes 

• Shares offered include 43.63% to anchor investors, 31.37% to qualified institutional investors, 15% to high-net-worth individuals and 10% to retail investors

• ICICI Securities, Axis Capital and Kotak Mahindra Capital are the lead managers of the IPO, while Link Intime India is the registrar    

Also Read: Why REITs Are A Smart Investment Strategy For Commercial Real Estate?

About Signature Global (India)

Signature Global is the largest real estate company in Delhi NCR’s affordable and lower mid-range housing, with a 19% market share. The company started operations through its subsidiary in 2014, with the Solera project in Gurgaon, Haryana.

The company has so far completed 12 projects and is working on 29 more. 19 more projects are in the pipeline.

Financial Performance of Signature Global (India)

While the revenue of the company has increased significantly in the previous four financial years, profit remains elusive for the company –

• The revenue of the company has increased from Rs 263 lakhs in FY2020 to Rs 1,586 crores in FY2023

• The loss after tax in this period has increased from Rs 56.57 crores to Rs 63.72 crores

• The assets of the company were valued at Rs 2,930 crores in FY2020, and Rs 5,999 crores in FY2023

• The total borrowing of the company has increased from Rs 969 crores to Rs 1,709 crores in FY 2023

• The debt-equity ratio of the company is 1.79, compared to 3.04 and 5.61 in the years before

• The earning per share in FY2023 was Rs (5.44), increasing from (10.23) in FY2022 and (7.56) in FY2021

Conclusion

Despite its large market share, the continued losses may be a cause of concern for investors. Investors must do thorough research before deciding on the IPO.

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Also Read: Jaw-Dropping Statistics: Luxury Real Estate Sales Skyrocket Despite Economic Uncertainties

Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.