Signature Global makes Dalal Street debut; 15.5% premium at ₹445 apiece on BSE

Signature Global is a well-established brand known for its strong presence in the Delhi-NCR region. The company has built a reputation for its innovative construction techniques, amenities, and affordable pricing strategies. In 2014, Signature Global began its operations through its subsidiary, Signature Builders Private Limited, with the launch of the Solera project, spanning 6.13 acres in Gurugram, Haryana. Since then, the company has steadily expanded its operations. As of March 31, 2023, Signature Global had successfully sold 27,965 residential and commercial units, all located within the Delhi NCR region. The company strategically focuses on the Affordable Housing segment and the middle-income housing segment in alignment with Government of India and state government policies. Most of its completed, ongoing, and upcoming projects are situated in Gurugram and Sohna, Haryana. Signature Global is committed to providing “value homes” characterized by attractive designs and a wide array of amenities.

Signature Global

The company aims to enhance the value of its projects by creating a superior living environment through the provision of comprehensive community facilities and collaborations with renowned architects. Signature Global’s affordable projects offer amenities such as recreational areas, gardens, open spaces, and community halls, while its mid-housing projects feature facilities like gyms, recreational spaces, entertainment centers, swimming pools, and sports facilities. Notably, all Affordable and Mid-housing projects include a retail component, designed to offer convenience to residents and enhance the overall project value without price restrictions.

Signature Global marked a strong debut in the Indian stock market on Wednesday. The shares of Signature Global were listed at ₹445.00 per share on the BSE, representing a premium of 15.58% over the issue price of ₹385 per share. Additionally, the listing price on the NSE stood at ₹444 per share, indicating a premium of 15.32%.

Signature Global, a real estate developer, conducted its ₹730-crore initial public offering (IPO) from September 20 to September 22. The IPO received an overall subscription of 11.88 times. Within the subscription, the retail investors’ portion was subscribed 6.82 times, the Non-Institutional Investors’ (NII) portion garnered a subscription rate of 13.54 times, and the Qualified Institutional Buyers (QIB) quota witnessed a subscription rate of 12.71 times. The total issue size for the Signature Global IPO was ₹730 crore, comprising a fresh issuance of 15,662,338 shares valued at ₹603 crore and an offer for sale (OFS) of up to 3,298,701 equity shares amounting to ₹127 crore by the promoter and promoter group.

The company’s plan for utilizing the net proceeds from the offering includes the following objectives:

  1. Repaying, either fully or partially, various borrowings it has undertaken.
  2. Providing financial injections to several subsidiaries, including Sternal Buildcon, Signatureglobal Homes, Signatureglobal Developers, Signatureglobal Business Park, and Signatureglobal Homes.
  3. Repaying, either fully or partially, borrowings incurred by these subsidiary entities.
  4. Supporting inorganic growth through potential acquisitions.

The book-running lead managers for the IPO were ICICI Securities Ltd, Axis Capital Ltd, and Kotak Mahindra Capital Company Ltd, while Link Intime India Pvt Ltd acted as the IPO registrar.