Signature Global IPO to open on September 20; check price band, lot size and other details

The initial public offering (IPO) of Signature Global will open for bidding on Wednesday. The real-estate developer has fixed the price band for the issue at Rs 366-385 per share. Potential investors can bid for a minimum of one lot of 38 equity shares and its multiples thereafter. The three-day bidding will conclude on Friday, September 22.

Signature Global is looking to raise Rs 730 crore from its initial stake sale, including a fresh issue of Rs 603 crore, while its shareholder International Finance Corporation, a World Bank Group member, will offload shares worth Rs 127 crore via offer-for-sale (OFS) route. The company earlier intended to raise about Rs 1,000 crore via primary markets.

Signature Global claims to be the largest real estate development company in the National Capital Region of Delhi (Delhi NCR) in the affordable and lower mid-segment housing. The company develops residential, commercial and retail projects mainly in Gurugram, Karnal and Ghaziabad.

Net proceeds from the fresh share sale would be utilised towards repayment of debts, amounting to Rs 432 crore.  The rest of the proceeds will be used for inorganic growth through land acquisitions and general corporate purposes. The OFS amount will go to the selling shareholder of the company. Anchor book will open on Monday, September 18.

For the year ended on March 31, the company reported a net loss of Rs 63.7 crore, with consolidated revenue from operations at Rs 1,553.6 crore. However, its net loss came in at Rs 115.5 crore with a revenue from operations at Rs 901.3 crore in the previous financial year.

The company has reserved 75 per cent of the net offer for qualified institutional bidders (QIBs), 15 per cent of the offer for non-institutional investors (NIIs) and 10 per cent for retail investors.

ICICI Securities, Axis Capital and Kotak Mahindra Capital Company are book-running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue. Shares of the company will be listed on the main board of both BSE and NSE.

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