Signature Global's Rs 730 cr IPO receives 54% subscription on first day

The Initial Public Offer (IPO) of realty firm Signature Global (India) received 54 per cent subscription on the first day of bidding on Wednesday.
 

The public issue received bids for 60,34,704 shares against 1,12,43,196 shares on offer as per data available with the NSE.

The portion for non-institutional investors was subscribed 1.42 times and the category for Retail Individual Investors (RIIs) got 89 per cent subscription.
 

The total size of the IPO is up to Rs 730 crore, comprising a fresh issue of shares worth up to Rs 603 crore and an Offer for Sale (OFS) of up to Rs 127 crore.
 

The public issue will close on September 22. The price band for the offer has been fixed at Rs 366-385 per share.

Delhi-NCR-based Signature Global has raised Rs 318.5 crore from anchor investors, including Nomura.
 

In a regulatory filing late Monday, Signature Global informed that under the Anchor Investors (AIs) portion in the public issue, 82,72,700 equity shares have been subscribed at Rs 385 per equity share.
 

Signature Global -- backed by HDFC Capital and IFC -- had in July last year filed the Draft Red Herring Prospectus (DRHP) with capital markets regulator Sebi to launch its IPO.
 

According to the Red Herring Prospectus (RHP) filed recently, the bulk of the proceeds will be used to reduce debt.
 

"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.
 

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.
 

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

Signature Global commenced operations in 2014.
 

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

ICICI Securities, Axis Capital and Kotak Mahindra Capital Company are the managers to the offer.