SignatureGlobal India Ltd IPO
Signature Global IPO Synopsis
Realty firm Signature Global (India) Ltd has received a nod from capital markets regulator Sebi for its initial public offer (IPO) to raise up to Rs 1,000 crore to clear debt and land acquisition. The issue will comprise a fresh issue of equity shares worth up to Rs 750 crore and an Offer for Sale (OFS) of up to Rs 250 crore. Promoter Sarvpriya Securities and investor International Finance Corporation will sell equity shares worth up to Rs 125 crore each.
ICICI Securities, Kotak Mahindra Capital and Axis capital are the lead managers for the issue.
Objective of issue
The net proceeds from the issue will be utilised towards:
• payment of debt and debt of subsidiaries Signature Global Homes, Signature Infrabuild, Signature Global Developers and Sternal Buildcon
• inorganic growth through land acquisitions
• general corporate purposes
About SignatureGlobal India Ltd
Signature Global is the largest real estate development company in the National Capital Region of Delhi (“Delhi NCR”) focussed on affordable and mid segment housing in terms of units supplied (in the below ₹ 8 million price category) between 2019 and 2021 with a market share of 19%.
As of March 31, 2021 the company sold 21,478 residential units with an average selling price of ₹2.81 million per unit.
It strategically focuses on central and state government policies supporting affordable housing, specifically the Affordable Housing Policy (AHP), 2013 notified by the Town and Country Planning Department, Government of Haryana and the Affordable Plotted Housing Policy or the Deen Dayal Jan Awas Yojana (DDJAY-APHP).
It is also focused on sustainable development and inculcate green concepts and techniques as part of its projects such as sustainable water management facilities and low flow fixtures that result in water saving, solid waste management and use of solar panels
All the projects are located in the well-developed Delhi NCR region, with connectivity to other parts of Delhi NCR. Some of the key completed projects include Solera, Serenas and Synera, each located in Gurugram, Haryana. Certain of the notable Ongoing Projects include City 37D, Sunrise and Prime, located in Gurugram, Karnal and Gurugram, respectively.
SignatureGlobal India Ltd Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Revenue | 901.3 | 82.1 | 241.6 |
| EBITDA | -46.6 | -14.8 | -14.7 |
| PAT | -115.5 | -86.3 | -56.6 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Total Assets | 4430.9 | 3762.4 | 2930.5 |
| Share Capital | 11.4 | 5.7 | 5.7 |
| Total Borrowings | 1157.5 | 1176.4 | 969.4 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 205.2 | 36.4 | 72.5 |
| Net cash from / (used in) investing activities | -53.8 | -26.2 | -71.8 |
| Net cash flow from / (used in) financing activities | -268.5 | 96.5 | 7.8 |
| Net increase (decrease) in cash and cash equivalents | -9.5 | 106.7 | -8.5 |
Peer Comparison
| Name of the Company | Total Income (in Rs. crores) | Basic EPS | CMP Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Signatureglobal (India) Limited | 939.60 | -10.23 | -30.96 | NA | 0.00% |
| DLF Limited | 6,137.85 | 6.06 | 146.9 | 62.78 | 2.33% |
| Godrej Properties Limited | 2,585.69 | 12.68 | 312.09 | 131.87 | 4.04% |
| Macrotech Developers Limited | 9,579.17 | 26.28 | 251.4 | 42.82 | 9.98% |
| Prestige Estates Projects Limited | 6,600.20 | 28.69 | 226.85 | 17.21 | 13.36% |
| Sobha Limited | 2,821.60 | 12.32 | 264.82 | 57.59 | 4.65% |
Signature Global IPO Key Points
-
Strengths
• Largest affordable and mid segment real estate developer in Delhi NCR
• Well-established brand, strong distribution network and digital marketing capabilities translating into faster sales
• Fast growing with ability to scale up rapidly
• Ability to provide aspirational lifestyle and amenities at affordable pricing and at strategic locations
• Standardized product offerings, quick turnaround and end-to-end in-house project execution expertise
• Positive operating cash flows with low levels of debt
-
Risks
• The business and profitability is significantly dependent on the performance of the real estate market in the DelhiNCR region, generally, and particularly in Gurugram and Sohna micro-markets in Haryana.
• Withdrawal of certain benefits under the Haryana Affordable Housing Policy, 2013 and the Deen Dayal Jan Awas Yojna
• There may be an increase in the price of land and/ or shortages of land available for development
• Rescheduling of the ongoing projects and forthcoming projects due to delay in e preliminary stages of planning and require approvals and renewals of certain approvals
• Unaware of legal uncertainities and defects related to the purchased lands even after due diligence
• Unsuccessfully identifying and acquiring suitable land or entering into collaboration agreements
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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Please keep below documents handy:
- PAN Card
- Aadhar Card
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Signature Global IPO FAQs
What is the minimum lot size and investment required for the Signature Global IPO?
The Signature Global IPO lot size is ___ shares per lot. A retail-individual investor can apply for up to 13 lots (____)
What is the price band of the IPO?
The price band of the IPO is yet to be updated.
When does the Signature Global issue open and close?
The Signature Global issue opens on _____ and closes on _____.
What is the size of Signature Global IPO issue?
The issue will comprise a fresh issue of equity shares worth up to Rs 750 crore and an Offer for Sale (OFS) of up to Rs 250 crore
Who are the promoters/key personnels of Signature Global?
Signature Global is promoted by Pradeep Kumar Aggarwal, Lalit Kumar Aggarwal, Ravi Aggarwal, Devender Aggarwal, Pradeep Kumar Aggarwal HUF Lalit Kumar Aggarwal HUF, Ravi Aggarwal HUF, Devender Aggarwal HUF and Sarvpriya Securities Private Limited.
What is the allotment date of Signature Global IPO?
The allotment date of the Signature Global IPO is yet to be updated.
What is the Signature Global IPO listing date?
The listing date for the issue is yet to be updated.
Who are the book runners for Signature Global IPO?
ICICI Securities, Kotak Mahindra Capital and Axis capital are the book running lead managers to the issue.
What is the objective of the issue?
The net proceeds from the issue will be utilised towards:
• payment of debt and debt of subsidiaries Signature Global Homes, Signature Infrabuild, Signature Global Developers and Sternal Buildcon
• inorganic growth through land acquisitions
• general corporate purposes
How to apply for the Signature Global IPO?
To apply for the IPO, follow the steps given below
• Login to your 5paisa account and select the issue in the current IPO section
• Enter the number of lots and price at which you wish to apply for
• Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
• You will receive a mandate notification to block funds in your UPI app
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