Signatureglobal India IPO 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 are selling shares of Rs 125 crore each. It is the largest affordable and lower-mid and mid segment real estate developer in Delhi NCR. The review could not be posted in time due to unavoidable circumstances and also overcrowding of IPOs.
| IPO opens | Sep 20, 2023 |
| IPO Closes | Sep 22, 2023 |
| IPO Size (Rs.) | ₹730.00 Cr |
| IPO Size (shares) | 18,961,039 shares |
| Breakup | Fresh issue ₹603.00 Cr + OFS ₹127.00 Cr |
| Face Value: | ₹ 1 |
| IPO Price in Rs : | ₹366 to ₹385 |
| Minimum Lot | 38 Shares |
| Anchor & QIB Quota | 75% |
| NII Quota | 15% |
| Retail Quota | 10% |
| Lead Manager | Icici, Axis,Kotak |
| Registrar | BigshareLink Intime |
About Signatureglobal India IPO:
- Signatureglobal India are the largest real estate development company in the National Capital Region of Delhi (“Delhi NCR”) in the affordable and lower mid segment housing in terms of units supplied (in the below ₹ 8 million price category) between 2020 and the three months ended March 31, 2023, with a market share of 19%. (Source: Anarock Report)
- As of March 31, it was the largest real estate developer under the AHP in the Gurugram and Sohna region, with a market share of 18% in terms of total supply of units in the period from 2020 to the three months ended March 31, 2023. (Source: Anarock Report)
- 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).
Financials: Signatureglobal India IPO
| Particulars / Rs cr. | FYE23 | FYE22 | FYE21 |
| Sales | 1553.57 | 901.3 | 82.06 |
| OPM (%) | 0.4 | -9.4 | -40.1 |
| OP | 6.05 | -84.87 | -32.91 |
| Other income | 32.31 | 38.3 | 23.67 |
| PBIDT | 38.36 | -46.57 | -9.24 |
| Interest | 72.92 | 69.13 | 70.88 |
| PBDT | -34.57 | -115.69 | -80.13 |
| PBT | -56.75 | -136.42 | -91.94 |
| Net profit | -63.86 | -116.41 | -86.02 |
Anchor: Signatureglobal India IPO
Partial List
Signatureglobal India IPO: Salient Points
- Affordable housing today is an integral part of the national agenda with significant significance in urban areas. Entire NCR
- saw housing sales increase by 73% from 23,209 units in 2020 to 40,053 units in 2021.
- Signatureglobal India operations are majorly focused in the Delhi NCR region and in particular, Gurugram and Sohna in Haryana.
- It is also present in Karnal in Haryana, and have Forthcoming Projects in Manesar.
- The Company is the largest affordable and lower-mid and mid segment real estate developer in Delhi NCR
- All the projects are located in the well-developed Delhi NCR region. These have connectivity to other parts of Delhi NCR.
- Major 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 etc.
- Signatureglobal India IPO sales grew at a CAGR of 42.46% from ₹ 16,902.74 million in FY21 to ₹ 34,305.84 million in FY23. However it has not been able to report a positive bottom line.
- Company has a track record of fast-paced execution and there is good demand in the region where the company operates.
- Signatureglobal India IPO has reported losses.
- While company is reporting losses, management claims that individual projects are operating at a profitable level
- Management has indicated that they are hopeful of turning the business profitable in short to medium term,
- I have put in some amount in Signatureglobal India IPO based on reasonable response to the IPO on Day 3. This is quite a risky bet.
- GMP as reported on social media is Rs. 25.
- Listing in IPO market may be under pressure due to excessive number of IPOs.
- The review could not be posted in time due to unavoidable circumstances and also overcrowding of IPOs.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.