On September 20, Signature Global’s (India) Rs 730 billion IPO opened for subscriptions. Before the initial public offering, the company raised Rs 318.5 crore from 19 anchor investors. The offer consists of a fresh issuance of shares valued at Rs 603 crore and an offer-for-sale (OFS) of Rs 127 crore by the International Finance Corporation (IFC).

Here are 10 key things to know before subscribing to the offer:

1) IPO Dates

The IPO subscription period began today, September 20, 2023, and will conclude on September 22, 2023.

2) Price Band

The price band for the issue has been fixed at Rs 366-385.

3) Offer Details

Signature Global (India) intends to raise 703 crore rupees through an IPO. The company has raised Rs 318.5 crore from 19 anchor investors prior to its IPO. The anchor book included the participation of Nomura Trust, Eastspring Investments, Lion Global Investment Funds, Troo Capital, Segantii India Mauritius, Morgan Stanley, BNP Paribas Arbitrage – ODI, Goldman Sachs, Copthall Mauritius, Kotak Mahindra Trustee, Quant Mutual Fund, Nippon India, Bandhan Mutual Fund, and Max Life Insurance Company.

4) Objectives of Issue

The company will use the proceeds for the re-payment or pre-payment, in full or in part, of certain borrowings and will infuse funds in certain of its subsidiaries, namely Signatureglobal Homes, Signatureglobal Developers, Signatureglobal Business Park and Sternal Buildcon for re-payment or pre-payment. The remaining funds will be allocated for inorganic growth via land acquisitions and general business purposes.

5) Lot Size

Investors are permitted to place bids for a minimum of 38 equity shares and multiples of 38 thereafter. Therefore, the minimal investment required by retail investors is Rs 13,908 (38 (lot size) x 366 (lower price band)). At its highest point, the offer amount will reach Rs 14,630.

6) Company Profile

With a 19% market share between 2020 and the three months that concluded on March 31, 2023 in the affordable and lower mid-segment housing sector in the Delhi NCR region, SignatureGlobal (India) is the leading real estate development business in the area.

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7) Financials

From Rs 115.5 cr. in FY22, the company’s net loss shrank to Rs 63.7 cr. in FY23. For the fiscal year ending in March 2023, total revenue increased from Rs 939.6 crore the previous year to Rs 1,585.88 crore.

8) Merchant Bankers

Kotak Mahindra Capital Company, ICICI Securities, and Axis Capital are acting as book-running lead managers for the issue. Link Intime India Private Limited will be handling the registration of this issue.

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9) Key Risks

“SGL has had a negative Net Worth and a net loss in the past, and it is possible that it will not be able to become or be profitable in the future. The health of the real estate market in the Delhi-National Capital Region (NCR) and, more specifically, the Gurugram and Sohna micro-markets in Haryana has a major impact on the company’s bottom line and overall success. HDFC Securities warns that “SGL’s ability to sell its projects at expected prices may be adversely affected by fluctuations in market conditions, which may reduce revenues and earnings.”

10) Listing Date

Signature Global’s stock will be traded on the NSE and the BSE. On Wednesday, October 4, 2023, the listing of the stock is anticipated. However, up until this point, there has been no formal notification.