The Initial Public Offering (IPO) of Signature Global (India) was oversubscribed by 11.88 times on the final day of subscription, Friday. This was supported by substantial participation from institutional investors, according to data from the National Stock Exchange (NSE). The public issue received bids for 13,36,05,074 shares against 1,12,43,196 shares on offer.
On Thursday, the second day of bidding, the IPO was subscribed 1.61 times. The portion for non-institutional investors was subscribed 13.54 times while the Qualified Institutional Buyers (QIBs) part received 12.71 times subscription. The category for Retail Individual Investors (RIIs) was subscribed 6.82 times.
The total size of the IPO is up to Rs 730 crore ($98 million), with a fresh issue of shares worth up to Rs 603 crore and an Offer for Sale (OFS) of up to Rs 127 crore. The price band for the offer was set at Rs 366-385 per share.
Prior to its IPO, Signature Global raised Rs 318.5 crore from anchor investors, including Nomura, subscribing 82,72,700 equity shares at Rs 385 per share. The company had offered 62,56,858 shares to QIBs and received bids for 7,95,08,806 shares.
According to the Red Herring Prospectus filed recently, the majority of proceeds will be used to reduce debt. Signature Global Chairman Pradeep Aggarwal stated that their net debt stood at around Rs 1,100 crore at the end of the last fiscal year and they propose to utilize Rs 432 crore for debt reduction. The remaining funds will be allocated for land acquisitions and general corporate purposes.
The promoter group currently holds a 78.35% stake in the company, which will decrease to around 69-70% post-listing. Signature Global, which focuses on affordable and mid-income housing, had recorded Rs 2,590 crore worth of sales bookings in the preceding fiscal. As of March 31, 2023, it has sold 27,965 residential and commercial units within Delhi-NCR, with an aggregate saleable area of 18.90 million square feet.
The offer was managed by ICICI Securities, Axis Capital (NYSE:AXS), and Kotak Mahindra Capital Company.
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