• Price Band fixed at ₹ 366 to ₹ 385 per Equity Share of face value of ₹1 each of SignatureGlobal (India) Limited
• Offer will close on Friday, September 22, 2023
• Bids can be made for a minimum of 38 Equity Shares and in multiples of 38 Equity Shares thereafter
SignatureGlobal (India) Limited (“SGL” or the “Company”), proposes to open on Wednesday, September 20, 2023, an initial public offer of equity shares of face value of ₹1 each (“equity shares”) of SignatureGlobal (India) Limited (“Company” or “Issuer”) for cash at a price per equity share (including a share premium per equity share) aggregating up to ₹7,300.00 million (the “Offer”) comprising a fresh issue of equity shares aggregating up to ₹6,030.00 million by the Company (“Fresh Issue”) and an offer for sale of equity shares aggregating up to ₹1,270.00 million by the International Finance Corporation as the selling shareholder (the “Offered Shares”).
The Offer will close on Friday, September 22, 2023.
The Price Band of the Offer has been fixed at ₹ 366 to ₹ 385 per Equity Share. Bids can be made for a minimum of 38 Equity Shares and in multiples of 38 Equity Shares thereafter.
ICICI Securities Limited, Axis Capital Limited & Kotak Mahindra Capital Company Limited are the Book Running Lead Managers to the offer.
SignatureGlobal (India) Ltd. is the largest real estate development company in the National Capital Region of Delhi (“Delhi NCR”) in the affordable and lower mid segment housing in terms of units supplied (in the below ₹ 8 million price category) between 2020 and the three months ended March 31, 2023, with a market share of 19%. (Source: Anarock Report).
The Company commenced operations in 2014 through its Subsidiary, Signature Builders Private Limited, with the launch of our Solera project on 6.13 acres of land in Gurugram, Haryana. It has grown its operations over the years and in less than a decade, and 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 18.90 million square feet. The Company’s Sales (net of cancellation) have grown at a compounded annual growth rate (“CAGR”) of 42.46%, from ₹ 16,902.74 million in Fiscal 2021 to ₹ 34,305.84 million in Fiscal 2023. As of March 31, 2023, it sold 25,089 residential units with an average selling price of ₹ 3.60 million per unit.
SignatureGlobal (India) adopted an integrated real estate development model, with in-house capabilities and resources to execute projects from inception to completion which enables it to offer projects at competitive prices. Among its core strengths is the Company’s ability to efficiently turnaround projects on land that it ties-up and it typically launched projects within a period of 18 months from the date of acquisition of the land.
The Company has an extensive distribution network focused on the customer segments it targets, with 593 channel partners and an in-house team of 41 employees engaged in direct sales and 100 employees for indirect sales, as of March 31, 2023, that has helped to achieve the current scale of offerings. The Company has also been effectively leveraging technology for the sale of inventory. The Company’s AHP (Affordable Housing) projects are sold exclusively through digital channels, as mandated by the Directorate of Town and Country Planning, Haryana (“DTCP”) and since January 2022, its entire project inventory under AHP projects is being exclusively sold online, including on the government website.
The Company's investor base includes IFC and HDFC Capital Advisors who participated in multiple rounds of capital raise undertaken by the Company.
SIGNATUREGLOBAL (INDIA) LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares (“Offer”) and has filed a Red Herring Prospectus (“RHP”) with the Registrar of Companies, Delhi and Haryana at New Delhi (“RoC”). The RHP is available on the website of the SEBI at www.sebi.gov.in, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com and the respective websites of the book running lead managers to the Offer, ICICI Securities Limited at www.icicisecurities.com, Axis Capital Limited at www.axiscapital.co.in and Kotak Mahindra Capital Company Limited at https://investmentbank.kotak.com. Investors should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the RHP filed with the RoC, including the section titled “Risk Factors” on page 30 of the RHP. Potential investors should not rely on the DRHP read with the addendum dated August 10, 2023.
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933 (the “U.S. Securities Act”) or any state securities laws in the United States, and unless so registered, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in ‘offshore transactions’ in reliance on Regulation S and the applicable laws of each jurisdictions where such offers and sales are made. There will be no public offering of the Equity Shares in the United States.