Signature Global IPO Subscription Update

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The public issue of Signature Global (India) continued to receive decent response from investors on the second day of bidding, September 21, subscribing 1.61 times so far. High networth individuals (HNIs) and retail investors were more aggressive in terms of bidding, subscribing 3.06 times and 2.53 times the allotted quota, respectively. Qualified institutional buyers (QIBs) bid for 62% shares of the reserved portion.

The company aims to raise Rs 603 crore via fresh issue and Rs 127 crore through offer-for-sale (OFS) at the upper price band. The net fresh issue proceeds will be used to repay debts, acquire land, and for general corporate purposes.

Signature Global has been reporting losses in the past financial years, but revenue from operations increased significantly. The company has completed several real estate projects under the DDJAY – APHP (The Affordable Plotted Housing Policy or the Deen Dayal Jan Awas Yojana (DDJAY – APHP). There are 29 ongoing and 19 forthcoming projects over 216.57 and 379.07 acres of land respectively. The company’s revenue is primarily concentrated in Delhi NCR, Gurugram and Haryana regions.

The issue is priced at a P/BV (price-to-book value) of 101.05 based on its NAV of Rs 3.81. The company has posted losses for the last three fiscals. Keeping in mind the real estate industry and fluctuating demand style, analysts advise investors to be cautious.

Overall, the Signature Global IPO has received decent response from investors so far, with HNIs and retail investors being the most aggressive bidders. However, analysts advise investors to be cautious due to the company’s history of losses and the fluctuating nature of the real estate industry.


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