Signature Global IPO Subscribed 11.88 Times on Final Day

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The Rs 730-crore initial public offering (IPO) of real estate developer Signature Global (India) was subscribed 11.88 times on September 22, the final day of bidding.

Retail investors bought 6.82 times their allotted quota of shares, while high networth individuals (HNIs) bought 13.54 times. The remaining 75 percent of the shares were subscribed 12.71 times by qualified institutional buyers (QIBs).

The IPO, which opened on September 20, was subscribed 1.61 times on the second day of bidding.

The offer comprises a fresh issue of shares worth Rs 603 crore and an offer-for-sale of shares worth Rs 127 crore by the International Finance Corporation. The price band for the offer is Rs 366-385 a share.

Signature Global, which has operations in the National Capital Region, will repay its and subsidiaries debt of Rs 432 crore from the fresh issue proceeds. The company had a debt of Rs 495.26 crore as of June 30, while the borrowings by four subsidiaries stood at Rs 123.86 crore.

The remaining funds will be used for land acquisitions and general corporate purposes.

The affordable and mid-segment housing-focused company has reported losses in the past financial years, though narrowed them in the year gone by.

The net loss for FY23 came in at Rs 63.7 crore, narrowed from loss of Rs 115.5 crore in FY22, but revenue jumped to Rs 1,553.6 crore from Rs 901.3 crore during the same period.

The company will finalise the basis of allotment of IPO shares by September 27 and credit shares to the demat accounts of eligible investors by October 3. Refunds will be transferred to the bank accounts of unsuccessful investors by September 29.

The share will list on the BSE and NSE on October 4, as per IPO schedule. However, this may change as recently four companies listed in accordance the SEBI’s new timeline of T+3.

Signature Global shares were available at a 9 percent premium over its upper price band in the grey market. The grey market is an unofficial trading platform for IPO shares which can be bought and sold till the listing.


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