Realty firm Signature Global has fixed a price band of Rs 366-385 per share for its maiden public issue and aims to raise Rs 330 crore from anchor investors.
Signature Global, which is based out of Delhi-National Capital Region, will hit the capital markets on September 20 with its IPO to raise Rs 730 crore. The offer will close on September 22.
In July last year, Signature Global filed the Draft Red Herring Prospectus (DRHP) with capital markets regulator Sebi to launch its IPO.
According to the Red Herring Prospectus (RHP) filed earlier this week, the total size of the IPO is up to Rs 730 crore, comprising fresh issue of shares of up to Rs 603 crore and Offer For Sale (OFS) of up to Rs 127 crore.
"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 here. The balance fund will be used for inorganic growth through land acquisitions and general corporate purposes.
"Signature Global brand is well established in Gurugram, Haryana, and the wider Delhi-NCR for affordable and mid-segment housing projects," Aggarwal said.
The focus will continue on these two segments, he added.
Aggarwal said the demand for bigger homes has increased after the pandemic.
Signature Global CEO Rajat Kathuria said the company has proposed to raise up to Rs 330 crore from anchor investors.
At present, the promoter group holds 78.35 per cent stake in the company, which is likely to come down to around 69-70 per cent in the company post-listing.
Through OFS, the International Finance Corporation (IFC) is selling their shares partly. At present, the IFC holds 5.38 per cent stake in the company.
As per the RHP, the company's total income rose to Rs 1,585.87 crore last fiscal from Rs 939.60 crore in the previous year.
The net loss has narrowed down to Rs 63.71 crore in 2022-23 from Rs 115.5 crore in the previous year.
Signature Global started operations in 2014 through its subsidiary Signature Builders Pvt Ltd with the launch of the 'Solera' project on 6.13 acres in Gurugram.
As of March 31, 2023, it had sold 27,965 residential and commercial units, all within the Delhi-NCR region, with an aggregate saleable area of 18.9 million sq ft.
As of March 31, it sold 25,089 residential units with an average selling price of Rs 36 lakh per unit.