Signature Global’s IPO Opens for Subscriptions with ₹730 Crore Target

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    Delhi-NCR-based realty firm, Signature Global, is now accepting subscriptions for its Initial Public Offering (IPO), which is set to raise ₹730 crore. The IPO opened for subscription on Wednesday and will close on September 22. The company initially filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator Sebi in July of last year.

    According to the recently filed Red Herring Prospectus (RHP), the IPO’s total size is up to ₹730 crore, comprising a fresh issue of shares valued at up to ₹603 crore and an Offer For Sale (OFS) of up to ₹127 crore.

    Price Band

    The IPO has established a price band of ₹366-385 per share for its maiden public issue. Signature Global has already secured ₹318.5 crore from anchor investors, which includes participation from Nomura. In a regulatory filing, the company reported that 82,72,700 equity shares have been subscribed at ₹385 per equity share in the Anchor Investors (AIs) portion of the public issue. Signature Global’s Chairman, Pradeep Aggarwal, stated to PTI, “Our net debt stood at around ₹1,100 crore at the end of the last fiscal year. We propose to utilize ₹432 crore for debt reduction.” The remaining funds will be allocated to inorganic growth through land acquisitions and general corporate purposes.

    Grey Market Premium

    The grey market premium (GMP) reflects the price at which shares are traded in the grey market. As of 9:58 pm, according to topsharebrokers.com, Signature Global’s shares were trading with a GMP of ₹34.

    Expert Opinions

    Market expert Dr. Ravi Singh expressed reservations about Signature Global’s IPO, citing the company’s consistent negative financial performance, leading to an excessively high issue price and a negative Price/Earnings (P/E) ratio. He advised investors to consider waiting for better valuations before considering this IPO.

    Also read: Signature Global Secures Rs 318.5 Crore in Anchor Investments for Upcoming IPO

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