Ahead of IPO, Signature Global raises ₹318.5 cr from anchor investors

A day before the opening of the ₹730 crore public issue, real estate company Signature Global (India) raised ₹318.5 crore from anchor investors on September 18, 2023.

The company, in a regulatory filing, says its initial public offering (IPO) committee on Monday i.e. September 18, 2023, finalised the allocation of 82,72,700 equity shares to anchor investors at an allocation price of ₹385 per equity share.

A total of 19 anchor investors participated in the issue, including major ones like Goldman Sachs, Eastspring Investments, Morgan Stanley, Nomura Trust, Lion Global Investment Funds, BNP Paribas Arbitrage -- ODI, and Copthall Mauritius Investments.

Of the total allocation of 82,72,700 shares to the anchor investors, 24,67,530 shares (29.83%) were allocated to three domestic mutual funds via five schemes. The total amount allocated under these schemes stands at ₹94.9 crore. The domestic anchor investors who took part in the schemes are Kotak Mahindra Trustee, Kotak India Eq Contra, Quant Mutual Fund -- Multi Asset Fund and Dynamic Asset Allocation Fund, and Bandhan Core Equity.

The real estate developer has set a price band of ₹366-385 per share for its IPO, which will open on September 20. The Gurugram-based affordable housing company is looking to raise ₹730 crore via a public listing of shares, including ₹603 crore via the fresh issue of equity shares and offer for sale (OFS) of shares worth ₹127 crore.

The International Finance Corporation-backed company had cut its IPO size from ₹1,000 crore, when it filed its draft red herring prospectus with capital market regulator SEBI in July last year. As per the DRHP, Sarvpriya Securities, a part of the company's promoter group, had proposed to sell shares worth ₹125 crore, but it has now dropped the plan.

Promoters own 78.36% of shares in Signature Global and the remaining 21.64% are held by public shareholders, including IFC, HDFC Capital, DKL Broking & Infra LLP, and Credible Nivesh. The IFC, an investment arm of the World Bank Group, owns a 5.38% stake in the company, while HDFC Capital holds 3.5% shares in the realty firm.

The three-day bidding for Signature Global IPO will close on September 22. The shares are set to be listed on stock exchanges BSE and NSE tentatively on October 4. The allotment of shares will be finalised on September 27, while successful bidders will get the shares credited into their demat accounts on October 3.

The lot size of the IPO is 38 equity shares and its multiples thereafter, which means the minimum investment amount for the application would be ₹14,630. The company has reserved up to 75% of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 10% for retail investors.

The company says it intends to use the capital raised from the fresh share sales to repay debts and utilise it for inorganic growth through land acquisitions as well as to meet general corporate purposes.

For the year ended on March 31, 2023, the company posted a net loss of ₹63.7 crore, while consolidated revenue from operations was at ₹1,553.6 crore. It had registered a loss of ₹115.5 crore and revenue from operations at ₹901.3 crore in the previous financial year.