Signature Global (India) Limited IPO is live. Should you Invest?

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In this article

• IPO details
• Issue details
• Offer Breakup
• IPO Strengths
• Key Risks
• Signature Global (India) Limited Financials

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📃About Signature Global (India) Limited

Incorporated in 2000, Signature Global (India) Limited is a real estate development company. The company operates in the National Capital Region of Delhi (“Delhi NCR”) focussed on offering affordable and mid-segment housing in terms of units supplied.

Signature Global (India) started its operations with its Solera project on 6.13 acres of land in Gurugram, Haryana and today has grown tremendously. As of March 2023, the company had sold 27,965 residential and commercial units, all located within the Delhi NCR region. Sales Growth has attained a CAGR of 42.46%, from Rs. 16,902.74 million in Fiscal 2021 to Rs. 34,305.84 million in Fiscal 2023.

Signature Global (India) Limited focuses on GoI and state government policies supporting affordable housing to assist customers in realizing their dream of owning a home. Policies like the Affordable Housing Policy, 2013, the Affordable Plotted Housing Policy the Deen Dayal Jan Awas Yojana (“DDJAY – APHP“), and so on. The company aspires to offer “value homes” which are a combination of attractive designs and amenities. Another aspect that the company proactively seeks is to enhance the value of its projects and create a better living environment.

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💰Issue Details of Signature Global (India) Limited

• IPO open from 20^th Sep 2023 – 22^nd Sep 2023
• Face value: ₹1 per equity share
• Price band: ₹366 to ₹385 per share
• Market lot: 38 shares
• Minimum Investment: ₹14,630
• Listing on: BSE and NSE
• Offer for sale: Approx ₹730 Cr (Fresh Issue: ₹603 Cr + OFS ₹127 Cr)
• Registrar: Link Intime India Private Ltd

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🪙Total Issue Price

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🪚Offer Breakup

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🔭IPO Object

The company intends to utilise the net proceeds from the issue towards the funding of the following objects:

1. Re-payment or pre-payment, in full or in part, of certain borrowings availed by the Company;
2. Infusion of funds in certain of our Subsidiaries, namely Signature Global Homes, Signature Infrabuild, Signature Global Developers, and Sternal Buildcon for re-payment or pre-payment, in full or in part, of certain borrowings availed by the Subsidiaries;
3. Inorganic growth through land acquisitions and general corporate purposes.

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⛓️IPO Strength

Some of the qualitative factors and strengths that form the basis for computing the Offer Price are: 

• Largest affordable and mid-segment real estate developer in Delhi NCR.
• Well-established brand, strong distribution network and digital marketing capabilities translating into faster sales.
•  Standardized product offerings, quick turnaround and end-to-end in-house project execution expertise.
• Ability to provide aspirational lifestyle and amenities at affordable pricing and at strategic locations.
• Experienced Promoters and professional senior management team with marquee investors.

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🧨IPO Risk

1. Their business and profitability are significantly dependent on the performance of the real estate market in the Delhi NCR region, generally, and particularly in Gurugram and Sohna micro-markets in Haryana. Fluctuations in market conditions may affect their ability to sell their projects at expected prices, which may adversely affect their revenues and earnings.
2. The withdrawal of certain benefits under the Haryana Affordable Housing Policy, 2013 and the Deen Dayal Jan Awas Yojna, may adversely affect their business, prospects and results of operations.
3. They depend significantly on their residential development business, particularly in the affordable housing category, the success of which is dependent on their ability to anticipate and respond to consumer requirements.
4. Work stoppages, shortage of labour and other labour problems could adversely affect their business. Further, their operations are dependent on contract labour and an inability to access adequate contract labour at reasonable costs at their project sites may adversely affect their business prospects and results of operations.

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💸Financial Data

Period Ended	Total Assets	Total Revenue	Profit After Tax
31-Mar-21	₹3762.37	₹154.72	–₹86.28
31-Mar-22	₹4430.85	₹939.60	–₹115.50
31-Mar-23	₹5999.13	₹1585.88	–₹63.72

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PEER COMPANIES

1. DLF Limited
2. Godrej Properties Limited
3. Macrotech Developers Limited
4. Prestige Estates Projects Limited
5. Sobha Limited

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📬Also Read: A Simple Guide: Opening a Demat Account for Minors in Bharat