Signature Global (India) Limited IPO: All you need to know

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Signature Global (India) Limited IPO

Signature Global (India) Limited is offering shares to the public from 20 September 2023 to 22 September 2023. Each share costs between ₹366 and ₹385 and has a face value of ₹1. You can buy a minimum of 38 shares for ₹14,630. They plan to list these shares on 4 October 2023. The total value of this offering is ₹730 Crores, which includes a fresh issue worth ₹603 Crores and an offer for sale worth ₹127 Crores.

Signature Global (India) Limited IPO: Business Overview

Signature Global (India) Limited is a company that started in 2000, and it builds homes in the Delhi area. They began with a project called Solera in Gurugram on a piece of land that's 6.13 acres big. Now, they've sold almost 28,000 homes and other buildings in Delhi. From 2021 to 2023, their sales increased by 42.46%, going from Rs. 16,902.74 million to Rs. 34,305.84 million. They use government programs aimed at making housing affordable to help people buy their homes. Some of these programs include the Affordable Housing Policy of 2013 and the Deen Dayal Jan Awas Yojana.

 The company wants to provide homes that are both affordable and well-designed with good features. They also aim to make their housing projects better and offer a nicer living space for people.

Signature Global (India) Limited IPO: Details

IPO Date20 September 2023 to 22 September 2023
Allotment DateSeptember 27, 2023
Listing DateOctober 4th, 2023
Issue SizeRs 730 Crores
Price BandRs 366-385 per share
Lot Size:38 Shares

(Source: DRHP)

Signature Global (India) Limited IPO: Reservations

QIB Shares OfferedNot more than 75% of the Net Offer
NII (HNI) Shares OfferedNot less than 15% of the Net Offer
Retail Shares OfferedNot less than 10% of the Offer

(Source: DRHP)

ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited have been appointed as the book-running lead managers for the Signature Global (India) Limited IPO, while Link Intime India Private Ltd will serve as the registrar to the issue. The shares are expected to be listed on both BSE and NSE, with a tentative listing date of October 4, which falls on a Wednesday.

The Objective of the Issue:

The net proceeds from the issue will be utilized towards:

1.       Re-payment or prepayment, in full or in part, of certain borrowings availed by the Company;

2.       Infusion of funds in certain of our Subsidiaries, namely Signature Global Homes, Signature Infrabuild, Signature Global Developers, and Sternal Buildcon for re-payment or prepayment, in full or in part, of certain borrowings availed by the Subsidiaries;

3.       Inorganic growth through land acquisitions and general corporate purposes.

Signature Global (India) Limited IPO: Financial Performance

ParticularsFY23(in Rs Crores)FY22(in Rs Crores)FY21(in Rs Crores)
Total Revenue1585.87939.6154.71
Profit/Loss After Tax-63.71-115.5-86.27
Current Assets5665.424034.643410.83
Current Liabilities4622.633873.493000.93

(source: RHP)

The Current Assets have increased from ₹ 4034.64 Crores in March 2022 to ₹ 5665.42 Crores in March 2023, with an increase of 40.41% indicating overall Asset performance.

In terms of revenue, the Company has experienced significant growth in operating revenue resulting in an increase in Total revenue, rising from ₹ 939.6 Crores in FY22 to ₹ 1585.87 Crores in FY23, with a conspicuous increase of 68.78%. Moreover, the company has a dominant market share in affordable housing in the Delhi NCR region,  Net loss has been decreasing, going from ₹ -115.5 Crores in FY22 to ₹ -63.71 Crores in FY23, which is a good sign.

Key Performance IndicatorValues
EPS (Rs)-5.44

(source: DRHP)

Signature Global (India) Limited IPO: Strengths

·       The leading developer of budget-friendly and middle-tier properties in Delhi NCR.

·       A recognized brand with a robust distribution system and online marketing skills, leading to quicker sales.

·       Fast growing with the ability to scale up rapidly

·       They offer a desirable way of living with great features, all at reasonable prices and in key locations.

·       Consistent product choices, fast results, and complete in-house expertise for handling projects from start to finish.

·       They have a good cash flow from operations and not much debt.

Signature Global (India) Limited  Peer Comparison

Name of the CompanyRevenue (In Crore)PAT (In Crore)EPS ( in Rs)P/E RatioMcap (In Crore)
Signature Global (India) Limited1585.87-63.71-5.44NANA
DLF Limited1575.7569.68.2265.691,31,785.60
Godrej Properties Limited1838.92453.8720.5582.445,457.76
Microtech Developers Limited3271.71746.1810.176.2375,412.08
Prestige Estates Projects Limited2938505.423.4927.5424,580.84
Sobha Limited1240.148.610.994.186358.47