Signature Global, a real estate firm based in the NCR region and specializing in affordable and mid-priced housing, is gearing up for its Initial Public Offering (IPO) scheduled to open on September 20. Founder and Chairman Pradeep Aggarwal expressed his ambition for the company to secure a position among the top-five real estate players in India in the coming years.
In the fiscal year 2023, Signature Global recorded impressive sales of Rs 3,430.6 crore, exhibiting a remarkable sales growth at a Compound Annual Growth Rate (CAGR) of 42 percent between FY21 and FY23.
The IPO comprises a fresh issue of Rs 603 crore and an offer-for-sale of Rs 127 crore from the International Finance Corporation, with a price band set at Rs 366 to Rs 385 per share. Investors can subscribe to the offering between September 20 and September 22.
Currently, Signature Global is actively involved in ongoing projects covering an extensive 2.13 crore sqft of developable area, with additional forthcoming projects planned for 2.45 crore sqft of developable area. The company’s sales figures are approaching those of Sobha Limited, the fifth-largest residential real estate player in terms of sales, which reported sales worth Rs 5,198 crore in FY23.
While Signature Global is making significant strides in the market, it is important to note that the company is yet to achieve profitability. In FY23, it reported a loss of Rs 56 crore. However, Chief Executive Officer Rajat Kathuria mentioned that some of the company’s projects are already generating profits.
Following the listing, the promoter shareholding is expected to be approximately 70 percent, a slight reduction from the current 78 percent. It’s worth noting that no promoters are divesting their stakes in the company.
During a press conference held on September 14, the management emphasized their efficient project launch process. They stated that once land is acquired, projects are initiated within a span of 18 months or less.
Signature Global’s innovative construction techniques include the use of aluminum foam sheets, which help reduce construction costs. This cost-efficient approach enables them to provide affordable housing options to their buyers.