SignatureGlobal India Ltd commenced operations in 2014 and is the largest real estate company (market share of 19%) in the NCR-Delhi region in affordable and lower mid-segment housing.
The company is raising Rs. 603 crores of fresh IPO money for repaying certain borrowing and funding inorganic growth. The total Issue size is Rs. 730 Cr. There is Rs. 127 Cr of OFS portion in the IPO.
SignatureGlobal India IPO is opening on 20th September 2023 for subscription. You can bid in the IPO using the net banking facility under ASBA. Below is the complete review and details that will help you make an informed IPO investment decision.
SignatureGlobal India Limited IPO Details
|IPO Opening date||20th September 2023|
|IPO Closing date||22nd September 2023|
|IPO Price||Rs. 366 to Rs. 385 per share|
|Lot size||38 shares|
|Issue size||Up to Rs. 730 Cr|
|No. of fresh shares||15,662,338 shares aggregating to Rs. 603 crores|
|Offer for Sale||3,298,701 shares aggregating to Rs. 127 cores|
|Listing on||BSE and NSE|
You can check the details of upcoming IPOs in 2023 here
SignatureGlobal India Limited IPO Timetable
|IPO Opening date||20th September 2023|
|IPO Closing date||22nd September 2023|
|Basis of Allotment date||27th September 2023|
|Credit of Share||03rd October 2023|
|Listing date||04th October 2023|
SignatureGlobal India Limited IPO GMP
GMP data collected from various sources like reputed financial websites, news channels, stockbrokers and IPO blogs is under.
Remember – Grey Market Price (GMP) shows you an indicative price of SignatureGlobal India Limited upon listing. You should take precautions because GMP is not an official price and only an indicative value.
SignatureGlobal GMP is not available at present on any of the leading financial websites and blogs.
|20th September 2023||Rs. xx (will be updated)|
|19th September 2023||Rs. xx (will be updated)|
|18th September 2023||Rs. 40|
|17th September 2023||Rs. 40|
SignatureGlobal India Limited Issue Size
The total Issue Size of SignatureGlobal IPO is Rs. 730 crores. Divided into fresh issue amount of Rs. 603 crores and an OFS portion of Rs. 127 crores.
The IPO aggregate issue size = Fresh Issue of 603 cr + 127 Crs of OFS portion, a total of Rs. 730 crs.
You can bid for any of the options. You can check the IPO bidding process here.
SignatureGlobal India Limited Overview
SignatureGlobal India Ltd is the largest real estate development company (with a market share of 19%) in the National Capital Region of Delhi in the affordable and lower mid-segment housing in terms of units supplied.
The company commenced operations in 2014, offering “value homes” with attractive designs and amenities.
SignatureGlobal is focused on sustainable development and inculcates green concepts and techniques as part of its projects. This includes – sustainable water management facilities and low flow fixtures that result in water saving, solid waste management and use of solar panels.
As of March 31, 2023, they 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.
SignatureGlobal has strategically focused on the
- Affordable Housing (“AH”) segment (below Rs. 4 million price category) and the
- Middle-Income Housing (“MH”) segment (between Rs. 4 million to Rs. 2.5 million)
The table below sets forth certain key operational information relating to projects as of March 31, 2023
Most of their Projects (88.49% of Saleable Area) are located in Gurugram and Sohna in Haryana.
Some of the key completed projects include
- Synera, located in Gurugram,
- Serenas located in Sohna, and
- Sunrise located in Karnal,
Notable ongoing projects of the company are – City 37D and Prime, both of which are located in Gurugram, Haryana.
SignatureGlobal’s standardized business processes, technical specifications and layout plans have resulted in low design costs and faster replication, resulting in shortening our development cycle and construction time.
As per UNDP, by 2050 approximately 50% of the population in India will be urban from nearly 36% in 2023, which is further fuelling the need for housing in the cities.
As per CII – Anarock Consumer sentiment survey of the first quarter of Fiscal 2022, 59% of the respondents considered real estate as the best asset class for investment.
56% of these were in the age bracket of 26-41 years, implying that ‘millennials’ are now homebuyers, and the trend is likely to continue in the future.
The supply of affordable segment categorized by ticket size below Rs. 4 million has witnessed year-on-year growth except for the year 2020, which was impacted due to the COVID-19 pandemic.
Overview of NCR
The NCR has a total area of about 53,817 sq. km and a population of over 58.15 million (Census 2011).
As per the report on “Population Projections for NCR (2016-2041),” the population of the NCR is projected to be 71.82 million (2021), 100.48 million (2036), and 113.02 million (2041).
The rapid increase in population and changing socio-economic landscape has resulted in a housing shortage in the region, primarily in the affordable category.
Share of Signature Global Group and other developers in Delhi NCR
The total supply of combined micro markets in Delhi NCR from 2020 to 2023 is 88,038 units. Out of the total NCR supply, Signature Global Group has a 16% market share (all budget categories)
SignatureGlobal India Limited Subscription Data
Day-wise subscription data of the SignatureGlobal India Limited IPO is under.
Subscription data shows the number of times the IPO is subscribed overall and also separately under each category.
|Day – 1 |
15th September 2023
|Day – 2 |
18th September 2023
|Day – 3 |
20th September 2023
SignatureGlobal India Limited Promoter Details
The promoters of SignatureGlobal India Ltd are
- Pradeep Kumar Aggarwal
- Lalit Kumar Aggarwal
- Ravi Aggarwal
- Devender Aggarwal
- Pradeep Kumar Aggarwal (HUF)
- Lalit Kumar Aggarwal (HUF)
- Ravi Aggarwal (HUF)
- Devender Aggarwal (HUF)
- Sarvpriya Securities Private Limited
The promoters collectively hold 79,416,700 equity shares, which constitute 63.61% of the issued, subscribed and paid-up equity share capital of the company.
SignatureGlobal India Limited Financials
Key financials of SignatureGlobal India Limited Ltd. for the last 3 completed financial years FY23, FY22, and FY21 are under.
|Details||FY- 2023||FY- 2022||FY- 2021|
|Total Assets||Rs. 5999.12 cr||Rs. 4430.85 cr||Rs. 3762.36 cr|
|Total Income||Rs. 1585.87 cr||Rs. 939.60 cr||Rs. 154.71 cr|
|Profit/ Loss After Tax||Rs. -63.71 cr||Rs. -115.50 cr||Rs. -86.27 cr|
|Net Worth||Rs. 47.53 cr||Rs. -352.21 cr||Rs. -206.86 cr|
|Other Equity (including retained earnings)||Rs. 35.05 cr||Rs. -363.59 cr||Rs. -212.55 cr|
|Total Borrowing||Rs. 1709.74 cr||Rs. 1157.53 cr||Rs. 1176.38 cr|
Net worth of SignatureGlobal India Limited was negative in FY 2021 (Rs -206 Cr) and FY 2022 (Rs. -352 Cr). It only turned positive in FY 2023 (Rs. 47 Cr)
In the past three years, SignatureGlobal India Limited’s long-term borrowings have increased from Rs. 1176 cr to Rs. 1709 Cr.
The total income of SignatureGlobal India Limited has grown almost 10 times in the last three years from Rs. 154.71 cr to Rs. 1585.87 cr.
But the PAT remained negative for all three years
- Rs. -86.27 cr in FY 2021
- Rs. -115.50 cr in FY 2022 and finally
- Rs. -63.71 cr in FY 2023.
Note – The company had negative PAT (losses in the last 3 years), a negative net worth for FY 22 & FY 21. And a large debt of Rs. 1709 as of FY 2023. Which goes to show a weak financial performance over the last 3 years.
SignatureGlobal India Limited Peer Comparison
The following peer group has been determined on the basis of companies listed on Indian stock exchanges, whose business profile is comparable to SignatureGlobal India Limited
|SignatureGlobal India Limited||–||-5.44||NA%||3.81|
|Godrej Properties Limited||82.40||20.55||6.68%||334.04|
|Macrotech Developers Limited||76.23||10.10||3.85%||131.98|
|Prestige Estates Projects Limited||27.54||23.49||10.69%||248.85|
You can use net banking (ASBA) to invest in an IPO if you want. ASBA is quick, hassle-free and can be completed in 5 minutes
SignatureGlobal India Limited Objects of the Issue
SignatureGlobal India Limited proposes to utilize the Net Proceeds from the Issue for
1. Re-payment/pre-payment of certain borrowings by the company
The company believes that re-payment will help reduce their outstanding borrowing and improve the debt-equity ratio.
The company intends to utilize Rs. 264 cr for repaying debt taken for various projects from the following bank
- SBM Bank India
- Yes Bank
- IndusInd Bank
- ICICI Bank
- IIFL Home Finance
- Kotak Investments Ltd
- Tata Capital
2. Infusion of funds in certain of our Subsidiaries for re-payment borrowings by the subsidiaries
On the same lines, SignatureGlobal India wants to infusion of funds amounting to Rs. 168 crs in a few of its subsidiaries so that they can reduce their debt burden.
The subsidiaries in which the infusion will take place are
- SignatureGlobal Homes,
- SignatureGlobal Developers,
- SignatureGlobal Business Park and
- Sternal Buildcon
3. Inorganic growth through land acquisitions and general corporate purposes
SignatureGlobal India has benefitted significantly from the land acquisition in the past. They intend to utilize the rest of the amount (Rs. 171 Crs) for the acquisition of land or land development rights by Fiscal 2024
In compliance with the SEBI ICDR Regulations, the company confirms that not more than 25% of the Gross Proceeds shall be used for inorganic growth through land acquisition.
SignatureGlobal India Limited IPO: Is it Worth Applying?
SignatureGlobal India Ltd is a decade-old largest real estate company with a market share of 19% in the NCR-Delhi region.
Real estate companies have a lot of land banks and inventories as part of their normal operation. Which makes them financially burdened (debt-laden).
SignatureGlobal’s business is capital intensive and requires significant expenditure for development and is therefore heavily dependent on the availability of finance.
Yet few of the real estate companies have performed well while others have perished. Depending on how they handle debt and the number of houses sold.
The company had negative PAT (losses in the last 3 years), a negative net worth for FY 22 & FY 21. And a large debt of Rs. 1709 as of FY 2023. This goes to show a weak financial performance over the last 3 years. You need to exercise caution while applying for SignatureGlobal India IPO.
Key risks to check are –
- Negative PAT (losses) in the last 3 years
- Dependent on the performance of the real estate market in the Delhi-NCR region
- 0.53% of unsold residential units and 16.85% of commercial units were unsold
- Price increase and disruption in the supply of, construction materials, labor and equipment
- Rs. 19.92 cr of outstanding legal litigations pending against the company
You can check the allotment status 3-4 days after SignatureGlobal’s IPO is complete.