Signature Global Limited IPO is scheduled for December 2022.

Signature Global IPO to hit the market by December end

Signature Global IPO

The IPO route is gradually becoming the hottest route for unlisted companies to launch themselves in the stock market. With a slew of IPOs coming up every day, investors keep themselves updated with the latest IPO to hit the block. In this context, Signature Global is the next big IPO expected to launch by year-end. Let’s have a look at the developments so far.

Signature Global – the company

Signature Global is a realty company engaged in developing affordable housing projects. It started its business in 2014 through one of its subsidiaries, Signature Builders. The company’s first project was Solera in Gurugram on 6.13-acre land.

Signature Global is engaged in commercial and residential property projects and has developed over the years after its launch.

According to the DRHP that the company filed with SEBI, here are some highlights of the company –

  • Signature Global has sold more than 23,000 residential and commercial units with an area of 14.59 million square feet. The units were all located in Delhi-NCR.
  • Sales (net of cancellations) grew at a CAGR of 14.62% between 2019-20 and 2021-22. Sales in 2019-20 stood at Rs.440 crores and then grew to Rs.2590 crores by 2021-22.
  • The company has sold 21,478 residential units at an average per unit price of Rs.2.81 million.
  • The total income of Signature Global grew from Rs.154.7 crores in 2020-21 to Rs.939.6 crores in 2021-22.
  • Total expenses increased from Rs.246.65 crores in 2020-21 to Rs.1076 crores in 2021-22.
  • In the last financial year, Signature Global reported a net loss of Rs.15.5 crores. In 2020-21, the figure was reported at Rs.86.27 crores.

Related - Find out how to check your IPO allotment status

About the upcoming IPO

Signature Global aims to raise Rs.1000 crores with its upcoming IPO. Of this, Rs.750 crores will be a fresh issue of equity shares, while Rs.250 crores will be an Offer for Sale (OFS). The company’s promoter Sarvpriya Securities and the investor International Finance Corporation will dilute their stakeholding through the OFS. Both entities will sell their stakes worth Rs.125 crores each.

The funds raised from the IPO will be used for the following purposes –

  • Debt repayment
  • Company’s growth through land acquisitions
  • General corporate uses
  • Debt repayment of Signature Global’s subsidiaries which include the following –
  • Signature Infrabuild
  • Signature Global Homes
  • Sternal Buildcon
  • Signature Global Developers

The company had previously filed for its IPO in July and also received approval from SEBI. However, the company will now file an updated Draft Red Herring Prospectus with SEBI and intends to launch the IPO by December end.

Keep an eye out for the prospective IPO dates if you wish to subscribe to the IPO and invest in the company.

Related - Check out the difference between an IPO and an NFO

The IPO route is gradually becoming the hottest route for unlisted companies to launch themselves in the stock market. With a slew of IPOs coming up every day, investors keep themselves updated with the latest IPO to hit the block. In this context, Signature Global is the next big IPO expected to launch by year-end. Let’s have a look at the developments so far.

Signature Global – the company

Signature Global is a realty company engaged in developing affordable housing projects. It started its business in 2014 through one of its subsidiaries, Signature Builders. The company’s first project was Solera in Gurugram on 6.13-acre land.

Signature Global is engaged in commercial and residential property projects and has developed over the years after its launch.

According to the DRHP that the company filed with SEBI, here are some highlights of the company –

  • Signature Global has sold more than 23,000 residential and commercial units with an area of 14.59 million square feet. The units were all located in Delhi-NCR.
  • Sales (net of cancellations) grew at a CAGR of 14.62% between 2019-20 and 2021-22. Sales in 2019-20 stood at Rs.440 crores and then grew to Rs.2590 crores by 2021-22.
  • The company has sold 21,478 residential units at an average per unit price of Rs.2.81 million.
  • The total income of Signature Global grew from Rs.154.7 crores in 2020-21 to Rs.939.6 crores in 2021-22.
  • Total expenses increased from Rs.246.65 crores in 2020-21 to Rs.1076 crores in 2021-22.
  • In the last financial year, Signature Global reported a net loss of Rs.15.5 crores. In 2020-21, the figure was reported at Rs.86.27 crores.

Related - Find out how to check your IPO allotment status

About the upcoming IPO

Signature Global aims to raise Rs.1000 crores with its upcoming IPO. Of this, Rs.750 crores will be a fresh issue of equity shares, while Rs.250 crores will be an Offer for Sale (OFS). The company’s promoter Sarvpriya Securities and the investor International Finance Corporation will dilute their stakeholding through the OFS. Both entities will sell their stakes worth Rs.125 crores each.

The funds raised from the IPO will be used for the following purposes –

  • Debt repayment
  • Company’s growth through land acquisitions
  • General corporate uses
  • Debt repayment of Signature Global’s subsidiaries which include the following –
  • Signature Infrabuild
  • Signature Global Homes
  • Sternal Buildcon
  • Signature Global Developers

The company had previously filed for its IPO in July and also received approval from SEBI. However, the company will now file an updated Draft Red Herring Prospectus with SEBI and intends to launch the IPO by December end.

Keep an eye out for the prospective IPO dates if you wish to subscribe to the IPO and invest in the company.

Related - Check out the difference between an IPO and an NFO

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