The IPO includes a new issue of shares worth up to Rs 750 crore. (Representative)
New Delhi:
Real estate company Signature Global (India) Ltd has received a nod from capital markets regulator Sebi for its initial public offering (IPO) to raise up to Rs 1,000 crore to clear debts and land acquisition.
In July, Signature Global, which focuses on affordable and mid-market housing segments, filed the Draft Red Herring Prospectus (DRHP) with Sebi to launch its first public release.
Sebi issued its observation letter on Nov. 24, according to the latest update on the regulators’ website.
In Sebi’s parlance, an issuance of the observation letter implies the regulator’s green light for the proposed IPO.
According to the DRHP, the IPO will include a new share issue 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 shares worth up to Rs 125 crore each.
The company proposes to use the net proceeds from the new issue for debt payment, inorganic growth from land acquisitions and general corporate purposes.
The money will also be used to pay the debts of subsidiaries: Signature Global Homes, Signature Infrabuild, Signature Global Developers and Sternal Buildcon.
Signature Global started operations in 2014 through its subsidiary Signature Builders Pvt Ltd with the launch of the ‘Solera’ project on 6.13 acres of land in Gurugram, Haryana.
“We have grown our business over the years and in less than a decade, and as of March 31, 2022, we had sold 23,453 residential and commercial units, all in the Delhi-NCR region, with a total marketable area of 14.59 million square feet,” the DRHP said.
The company’s sales bookings (excluding cancellation) have grown at a compound annual growth rate (CAGR) of 142.62 per cent, from Rs 440 crore in 2019-2020 to Rs 2,590 crore in 2021-22.
“As of March 31, 2022, we have sold 21,478 housing units with an average sales price of Rs 2.81 million per unit. We have strategically focused on the policies of the Central and State Governments in support of affordable housing, in particular the Affordable Housing Policy (AHP ), 2013 notified by the Department of Planning, the Government of Haryana and the Affordable Plotted Housing Policy or Deen Dayal Jan Awas Yojana (DDJAY-APHP),” the DRHP said.
Each of the policies focuses on affordable and mid-market housing.
On the financial front, Signature Global’s total revenue rose to Rs 939.6 crore in fiscal year 2021-22 from Rs 154.7 crore in the previous financial year.
The total cost rose from Rs 246.65 crore in FY 2020-21 to Rs 1,076 crore in the last fiscal year.
Signature Global posted a net loss of Rs 115.5 crore in the past financial year. The net loss was Rs 86.27 crore in the previous year.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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