Real Estate firm Signature Global files IPO papers with SEBI, plans to raise Rs 1,000 crore
Signature Global India has filed draft initial public offering (IPO) papers with capital markets regulator SEBI. The affordable housing company is looking to raise up to Rs 1,000 crore through the public issue, which will be a mix of a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders of the company, including promoters Sarvpriya Securities. HDFC Capital and International Finance Corporation are among the investors of the company. Signature Global is a Delhi-NCR-based real estate company focused on affordable and mid-segment housing.
The real estate company is looking to raise funds via a fresh issue and an offer for sale. The fresh issue portion of the issue will be up to Rs 750 crore while the remaining Rs 250 crore will be OFS. Under the OFS part of the issue, World Bank’s International Finance Corporation and promoter Sarvpriya Securities Private Limited will be selling shares worth Rs 125 crore each, the draft red herring prospectus of the company said.
As of the date of filing Draft Red Herring Prospectus, HCARE and IFC hold an aggregate of 3,46,180 CCDs. HCARE is a trustee of HDFC Capital Affordable Real Estate Fund. “As agreed between the Company, HCARE under the HCARE IRA and between the Company and IFC under the IFC IRA, all CCDs shall be converted into Equity Shares, prior to filing of the Red Herring Prospectus with the RoC, as required under the SEBI ICDR Regulations,” the draft paper said. Upon conversion, and prior to the filing of the Red Herring Prospectus with the RoC, each of HCARE and IFC shall hold up to 50,10,740 Equity Shares and up to 76,89,260 Equity Shares, respectively, on a fully diluted basis.
The company will raise Rs 750 crore from the IPO while the remaining will go directly to the selling shareholders of the company. From the funds raised, Signature Global plans to re-pay or pre-pay, in full or in part, of certain borrowings. Signature Global also intends to infuse funds in certain subsidiaries, namely Signatureglobal Homes, Signature Infrabuild, Signatureglobal Developers and Sternal Buildcon for repayment or prepayment, in full or in part, of certain borrowings availed by the subsidiaries.
“We have grown our operations over the years and in less than a decade, and as of March 31, 2022, we had sold 23,453 residential and commercial units, all within the Delhi NCR region, with an aggregate Saleable Area of 14.59 million square feet,” Signature Global said in the DRHP. The company added it has 27 ongoing projects and 27 further forthcoming projects.
Signature Global has registered losses in the last three years and hence, 75% of the IPO will be reserved for Qualified Institutional Buyers. 15% will be allocated to Non-Institutional Buyers and remaining 10% for retail investors.