Signature Global (India) Ltd has received a nod from capital markets regulator Sebi for its initial public offer (IPO) to raise up to Rs 1,000 crore to clear debt and land acquisition.
In July, Signature Global, which fuses on affordable and mid-housing segments, filed the Draft Red Herring Prospectus (DRHP) with Sebi to launch its maiden public issue. Sebi issued its observation letter on November 24, according to the latest update.
In Sebi's parlance, issuance of the observation letter implies the go-ahead from the regulator for the proposed IPO. As per the DRHP, the IPO will comprise a fresh issue of equity shares worth up to Rs 750 crore and an Offer for Sale (OFS) of up to Rs 250 crores. Promoter Sarvpriya Securities and investor International Finance Corporation will sell equity shares worth up to Rs 125 crores each.
The company proposes to utilise the net proceeds from the fresh issue towards payment of the debt, inorganic growth through land acquisitions, and general corporate purposes. The funds will also be used to pay the debt of subsidiaries -- Signature Global Homes, Signature Infrabuild, Signature Global Developers, and Sternal Buildcon. 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.
"We have grown our operations over the years and in less than a decade, as of March 31, 2022, we had sold 23,453 residential and commercial units, all within the Delhi-NCR region, with an aggregate saleable area of 14.59 mn sq ft," the DRHP said. The company's sales bookings (net of cancellation) have grown at a Compound Annual Growth Rate (CAGR) of 142.62 percent, from Rs 440 crore in 2019-2020 to Rs 2,590 crore in 2021-22.
"As of March 31, 2022, we have sold 21,478 residential units with an average selling price of Rs 2.81 million per unit. We have strategically focused on central and state government policies supporting affordable housing, specifically the Affordable Housing Policy (AHP), 2013 notified by the Town and Country Planning Department, Government of Haryana, and the Affordable Plotted Housing Policy or the Deen Dayal Jan Awas Yojana (DDJAY-APHP)," the DRHP said. Each of the policies is focused on affordable and mid-segment housing.
On the financial front, Signature Global's total income rose to Rs 939.6 crores in the 2021-22 fiscal year from Rs 154.7 crores in the previous fiscal. Total expenses rose to Rs 1,076 crores in the last fiscal year from Rs 246.65 crores in the 2020-21 financial year. Signature Global posted a net loss of Rs 115.5 crore during the last financial year. Its net loss stood at Rs 86.27 crores in the preceding year.
