Last Updated on October 10, 2023 by BFSLTeam BFSLTeam
Signature Global (India) Limited is a prominent real estate brand centred in the Delhi-NCR region. The company gained its reputation for innovative and advanced construction technologies, affordable prices and amenities. Keeping in mind its plan to grow business, Signature Global (India) Limited IPO is all set to launch its Initial Public Offering (IPO). The company has received a green signal from SEBI and is set to launch a Rs. 730 crore IPO primarily to raise funds for debt repayment and general corporate purposes.
This blog will give you a thorough idea about Signature Global (India) Limited to help you make an informed decision on whether to invest in its IPO.
Also Read: How To Apply For An IPO?
Table of Content
IPO Details
Signature Global (India) Limited IPO opens on September 20, 2023 and closes on September 22, 2023. As a book-built IPO, the company shall accept bid prices equivalent to or above its floor price.
Here are some essential details about Signature Global (India) that you must know before investing.
| IPO Open Date | September 20, 2023 |
| IPO Close Date | September 22, 2023 |
| Issue Type | Book Built Issue |
| Listed on | BSE and NSE |
| Face Value | Rs. 1 per share |
| Price Band | Rs. 366- Rs. 385 per equity share |
| Minimum Lot Size | 38 shares |
| Total Issue Size | Aggregating up to Rs. 730 crore |
| Fresh Issue | Aggregating up to Rs. 603 crore |
| Offer for Sale | 32,98,701 equity shares (aggregating up to Rs. 127 crore) |
About the Company
Signature Global (India) Limited commenced its operation in 2014 through Signature Builders Private Limited. Today, it is a well-established real estate brand with a robust presence in Delhi NCR and is popular for revolutionary construction technologies, affordable prices and amenities.
Within a decade, Signature Global (India) Limited has grown its business significantly. According to their DRHP, as of March 2022, they have sold 23,453 residential and commercial properties in the Delhi NCR area alone. Their CAGR has grown to 142.62% from Rs. 4400.10 million in FY 2020 to Rs. 25,900.38 million in FY 2022.
Signature Global (India) Limited aims to provide “value homes” with unique designs and features. The major target audience of Signature Global (India) Limited are the middle and upper-middle-class population. Their ongoing projects comprise 6,282 residential units and 566 commercial units. They have also received occupational certificates for the same.
IPO Tentative Timeline
The table below displays the tentative dates for the upcoming Signature Global (India) Limited IPO.
| IPO Open Date | Wednesday, September 20, 2023 |
| IPO Close Date | Friday, September 22, 2023 |
| Cut-off time for UPI mandate confirmation | 5 pm, September 22, 2023 |
| Basis of Allotment | Wednesday, September 27, 2023 |
| Initiation of Refunds | Friday, September 29, 2023 |
| Credit of Shares to Demat accounts | Tuesday, October 3, 2023 |
| Listing Date | Wednesday, October 4, 2023 |
IPO Lot Sizes
As an investor, you can bid for a minimum of 38 shares and multiples of each lot while buying IPO shares. The table below highlights the minimum and maximum lot sizes for you to strategise your investment.
| Applications | Lots | Shares | Amount |
| Retail (min) | 1 | 38 | Rs. 14,630 |
| Retail (max) | 13 | 494 | Rs. 1,90,190 |
| S-HNI (min) | 14 | 532 | Rs. 2,04,820 |
| S-HNI (max) | 68 | 2584 | Rs. 9,94,840 |
| B-HNI (min) | 69 | 2622 | Rs. 10,09,470 |
Also Read: How Can You Analyse An IPO?
Company Financials
Take a look at the table below to learn about the important financial metrics before investing in Signature Global (India) Limited IPO.
| Particulars | For the Financial Year Ending (in Rs. Million) | ||
| March 31, 2022 | March 31, 2021 | ||
| Total Assets | 59,991.28 | 44,308.51 | 37,623.66 |
| Total Liabilities | 59,489.50 | 47,772.00 | 39,581.85 |
| Total Expenses | 16,426.28 | 10,760.17 | 2,466.55 |
| Total Revenue | 15,858.78 | 9,396.00 | 1,547.19 |
| Profit/Loss After Tax | (637.15) | (1155.00) | (862.78) |
| EBITDA | 383.58 | (465.66) | (147.70) |
Strengths
Here are the strengths of Signature Global (India) Limited that you must know before investing in its IPO.
- Talking about affordable mid-segment housing brands, Signature Global (India) Limited is the leading brand in Delhi NCR region. All of their projects are located in the Delhi-NCR region.
- The company owns a well-established brand image, a well-knit distribution network and digital marketing potential to increase its sales. It is also engaged in several ad campaigns and celebrity endorsements to grow its brand image.
- Signature Global (India) Limited’s previous track records demonstrate the company’s ability to scale up its reach rapidly. It has also successfully replicated its business models across micro-markets in Gurugram, Delhi-NCR and Haryana. The company’s track record also highlights the company’s successful execution of business strategies during challenging periods like the COVID-19 pandemic.
- The company promises and strives to fulfil customer’s desires for an aspirational urban lifestyle with premium amenities at affordable prices and strategic location. Its projects under DDJAY-APHP comprise real estate amenities and features dedicated to fulfilling your urban needs. This comprises swimming pools, skating arenas, jogging tracks, parking areas, gymnasiums for kids and adults and much more.
- Standardised product offerings, end-to-end in-house project initiation expertise and quick turn-around are some of the company’s noteworthy features that act as its strengths.
Risks Involved
Besides the above strengths, you also should be aware of the risks associated with Signature Global (India) Limited. Here are some of the crucial risks involved with Signature Global (India) IPO.
- Signature Global (India) Limited’s business and revenue are majorly dependent on the performance of the real estate market in the Delhi-NCR region. The main micro-markets are in Gurugram, Sohna and Haryana. Any change or shift in real estate market conditions in these areas can adversely affect its business, operation and revenue.
- Any major social or global crisis like the COVID-19 pandemic holds the potential to adversely affect its business. It can pose a hindrance to smooth cash flow as the demand for this company’s projects falls significantly.
- The projects under Signature Global (India) Limited rely heavily on governmental policies like the Haryana Affordable Housing Policy and Deen Dayal Jan Awas Yojana. Withdrawal of any of these policies can affect Signature Global’s business prospects and revenue from operations.
Also Read: Risk of investing in IPO
Summary
The points above cover all the necessary details of the DRHP. This will help you gain an idea about the company and its prospects. Thus, you can go through this blog to devise an investment strategy if you are planning to invest in Signature Global (India) Limited IPO.
The company plans to utilise its net proceeds to repay or pre-pay its debts partially or completely. It also plans to invest its IPO earnings to grow its business through land acquisition and other corporate purposes.
