Signature Global booked 5.95 times on Day 3 so far; bidding for the issue closes today

The Rs 730 crore IPO of Signature Global (India) saw a strong response during the third and last day of the bidding process. The issue was booked 57 per cent on the first day, but sailed through on the second day. The issue ended day two with 1.70 times subscription.

Signature Global is offering its shares in the range of Rs 366-385 apiece and with a lot size of 38 equity shares and its multiples thereafter. Of the Rs 730 crore issue, Rs 603 crore is fresh equity shares, while remaining Rs 120 crore shall be raised by offer-for sale (OFS) of up to 32.98 lakh equity shares.

According to the data, the investors made bids for 6,67,66,722 equity shares, or 5.95 times, compared to the 1,12,43,196 equity shares offered for the subscription by 2.50 pm on Friday, September 22. The issue opened for bidding on Wednesday, September 20 and subscription closes today.

The allocation for non-institutional investors was booked 9.85 times, while the portion for retail investors saw a subscription of 5.56 times. However, the portion reserved for qualified institutional bidders (QIBs) attracted bids for 4.21 times as of the same time.

Signature Global is one of the largest real estate development players in the Delhi-NCR in affordable and lower mid-segment housing, majorly in cities of Ghaziabad, Gurugram and Karnal. It has sold 27,965 residential and commercial units, all located within these regions of Delhi NCR.

On Monday, Signature Global raised Rs 318.5 crore from 19 anchor investors by allocating 82,72,700 equity shares at Rs 385 per share. Kotak Mahindra Capital, ICICI Securities and Axis Capital are managing the issue, while Link Intime India is the registrar for this IPO.

Brokerage firms have a mixed view on the issue. Sushil Finance is neutral on the issue, citing the fluctuating demand of the real estate sector. "Looking at opportunities and challenges faced by Signature Global and keeping the further performance, cautious investing by cash surplus investors as and when the performance turns around," it added further.

IndSec Research has suggested to subscribe to the issue. The company management is hopeful of turning the business profitable over the short to medium term. The brand recognition earned through fast-paced execution with value offerings bodes well for growth," it added.


Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Also read: Vedanta shares in news today as board approves raising Rs 2,500 cr via NCDs

Also read: Hot stocks on September 22, 2023: Vedanta, SJVN, Texmaco Rail, EKI Energy and more