IPO-bound Signature Global’s sales bookings up 32% to Rs 3,430 cr

Realty firm Signature Global, which is launching its maiden public issue on Wednesday, has achieved 32 per cent growth in its sales bookings to Rs 3,430.58 crore in the last fiscal year on strong housing demand.

The Gurugram-based Signature Global, which focuses on affordable and mid-income housing segment, had clocked Rs 2,590 crore worth of sales bookings in the 2021-22 fiscal.

The company, backed by HDFC Capital and IFC, will hit the capital market on September 20 with its IPO to raise Rs 730 crore. The offer will close on September 22.

In July last year, Signature Global filed the Draft Red Herring Prospectus (DRHP) with capital markets regulator Sebi to launch its IPO.

The company has fixed the price band at Rs 366-385 per share for its maiden public issue and aims to raise Rs 330 crore from anchor investors.

According to the Red Herring Prospectus (RHP) filed recently, the total size of the IPO is up to Rs 730 crore, comprising a fresh issue of shares up to Rs 603 crore and an offer for sale (OFS) of up to Rs 127 crore. The bulk of the proceeds will be used to reduce debt.

On operational performance, Signature Global’s collection from customers rose to Rs 1,920 crore last fiscal from Rs 1,282.14 crore in the previous year.

It launched 6.21 million square feet area during 2022-23 as against 4.21 million square feet in the previous year.

Signature Global delivered 4.01 million square feet area last fiscal, up from 3.03 million square feet in the previous year.

“Our net debt stood at around Rs 1,100 crore at the end of the last fiscal year. We propose to utilise Rs 432 crore for debt reduction,” Signature Global Chairman Pradeep Aggarwal told reporters recently.

The balance fund will be used for inorganic growth through land acquisitions and general corporate purposes, he had said.

Signature Global CEO Rajat Kathuria said the company had said the company proposed to raise up to Rs 330 crore from anchor investors.

At present, the promoter group holds a 78.35 per cent stake in the company. Their shareholding will come down to around 69-70 per cent in the company post-listing.

Through OFS, International Finance Corporation is selling its shares partly. At present, IFC holds a 5.38 per cent stake in the company.

As per the RHP, the company’s total income rose to Rs 1,585.87 crore last fiscal from Rs 939.60 crore in the previous year. The net loss has narrowed down to Rs 63.71 crore in the 2022-23 fiscal year from Rs 115.5 crore in the previous year.

Signature Global commenced operations in 2014 through its subsidiary Signature Builders Pvt Ltd with the launch of ‘Solera’ project on 6.13 acres of land in Gurugram, Haryana.

As of March 31, 2023, it had sold 27,965 residential and commercial units, all within the Delhi NCR region, with an aggregate saleable area of 18.90 million square feet.

As of March 31, 2023, it sold 25,089 residential units with an average selling price of Rs 36 lakh per unit.