According to the DRHP (Draft Red Herring Prospectus), the IPO will comprise a fresh issue of equity shares of OFS (Offer for Sale) up to Rs 250cr and worth up to Rs 750 crore.
NEW DELHI: Realty estate company, Signature Global has received a signal from capital markets regulator Sebi for its IPO (initial public offer) to raise Rs 1,000 crore to clear their land acquisition and accounts. Signature Global focuses on mid-housing segments and affordable segments.
Securities and Exchange Board of India
In July, it filed the DRHP (Draft Red Herring Prospectus) with Sebi (Securities and Exchange Board of India) to launch its maiden public issue. According to the current update on the website, the Securities and Exchange Board of India issued its observation letter on 24 November 2022.
The corporation will sell equity shares worth up to Rs 125 crore each. In Sebi’s talk, an allocation of the observation letter implies the go-ahead from the regulator for the proposed initial public offer. Both the International Finance Corporation and Promoter Sarvpriya Securities will sell equity shares with a value of up to Rs 125 crore each.
Signature Global proposes to utilize the net amount towards payment of general corporate purposes, remaining debt, and land acquisitions. These funds will also be used to pay the debt of subsidiaries like Signature Global Developers, Signature Infrabuild, Signature Global Homes, and Sternal Buildcon.
Signature Global operations in the year 2014 by launching the Solera project on 6.2 acres of land in Gurgaon, Haryana. It is commenced through its subordinate Signature Builders Pvt Ltd.
Signature Global’s had Rapid Growth
The DRHP said we had sold approx. 23,453 both commercial and residential units all over the region of Delhi-NCR. It will cover the total saleable area of 14.59 million sq. ft. DRHP also said, over the years, we have grown our operations in less than a decade as of March 31, 2022. As per the financial front, the total income of Signature Global’s total had rapid growth from Rs 939.6 crore in the year 2021-2022 to Rs 154.7 crore in the previous year.
Compound Annual Growth Rate
Also, the sales bookings or net of cancellation of the company have grown at a CAGR (Compound Annual Growth Rate) of 142.62 percent, from Rs 440 crore in the year 2019-2020 to Rs 2,590 crore in the year 2021-2022. The DRHP said, we have mainly focused on state government policies and central government policies that support DDJAY (Deen Dayal Jan Awas Yojana) or Affordable Plotted Housing Policy, (AHP) affordable housing policy 2013, by the Town and Country Planning Department and the government of Haryana. Each of the policies is focused on the mid segment and affordable housing.
As of March 31, 2022, we have sold about 21,478 residential units with an average selling price of Rs 2.81 million per unit. The total expenses in the financial year 2020-2021 were Rs 246.6 cr. But it had increased to Rs 1,076 crore compare to last year. In the last financial year, Signature Global had a net loss of Rs 115.5 crore. Also, in the preceding year, it had a net loss stood at Rs 86.27 crore.
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