Signature Global (India) Limited IPO 2023

Signature Global (India) Limited, established in the year 2000, is a real estate development company. The company primarily operates in the National Capital Region of Delhi ("Delhi NCR") and specializes in providing affordable and mid-segment housing units with prices below Rs. 80 lakh, with a 19% market share. 

Signature Global (India) Limited-Journey

The Company was originally incorporated as a private limited company under the Companies Act, 1956, in the name of ‘Ridisha Marketing Private Limited’ on  March 28, 2000. 

Later, on January 6, 2014, the name of the Company was changed to ‘Signatureglobal (India) Private Limited’ for undertaking real estate activities.  

on February 14, 2022, the Company was converted from a private limited company to a public limited company, and the name of the Company was changed to ‘Signatureglobal (India) Limited.

 Real Estate Sector/Housing Scenario in India

The real estate sector plays a vital role in India's economy, contributing significantly to the country's GDP growth, and the Indian government acknowledges its importance.

Within the broader real estate sector, the housing or residential asset category has undergone notable changes over the past four years. These changes include the implementation of the Real Estate Regulatory Act (RERA), the introduction of the Goods and Services Tax (GST) for under-construction housing, as well as the impact of demonetization, temporary liquidity issues in 2018-2019 (related to NBFCs), and the challenges posed by the COVID-19 pandemic in 2020.

Despite these challenges, the Indian residential sector experienced a noteworthy resurgence in 2021, with the supply and sales of residential units approaching levels similar to those seen before the onset of the COVID-19 pandemic in 2019, which the country witnessed with an FDI inflow of US$ 43.18 billion.

Factors governing the housing Scenario in India

• Buyer's purchasing power

• Developer's ability to create housing stock

• Government policies and initiatives

• Affordability

• Home loan interest rates

• Availability and accessibility of home loans for buyers

Signature Global (India) Limited IPO Details

The Signatureglobal India IPO subscription period begins on September 20, 2023, and ends on September 22, 2023. Allotment results for the Signatureglobal India IPO are anticipated to be determined by Wednesday, September 27, 2023. The IPO is scheduled to be listed on both BSE and NSE, with a provisional listing date set for Wednesday, October 4, 2023. The signature global ipo price value stands at Rs.366 to Rs.385

Purpose of Signature global Ltd IPO Issue

• Paying back some loans the company has taken.

• Giving money to subsidiaries, like Signatureglobal Homes, Signature Infrabuild, Signatureglobal Developers, and Sternal Buildcon, to help them repay their loans.

• Buying land and other general business needs for company growth.

Signature global Ltd IPO Issue Key Dates:

 

Signatureglobal India IPO Lot Size

Signatureglobal India IPO Subscription Status

The Signatureglobal India IPO has a subscription rate of 0.06 times as of September 20, 2023, at 11:13:00 AM. The breakdown of subscriptions is as follows: 0.29 times in the retail category, 0.00 times in the QIB category, and 0.02 times in the NII category.

Total Application: 11,061 (0.22 times)

Signature global Ltd Investment Potential:

Qualitative Factors:

• The biggest developer of affordable and mid-segment real estate in the Delhi NCR region

• A strong brand, distribution network, and digital marketing for faster sales.

• Rapid growth potential.

• Offering aspirational living at affordable prices in strategic locations.

• Efficient operations with low debt and positive cash flow.

• A focus on sustainable development.

• An experienced leadership team with notable investors' support.

Quantitative Factors:

Key Performance Indicator

 

Risk Factors:

• The company's business and profitability hinge significantly on the performance of the real estate market in the Delhi NCR region, particularly in Gurugram and Sohna micro-markets in Haryana. Market fluctuations have the potential to impede the company's ability to sell projects at anticipated prices, thereby impacting its revenue and earnings.

• Alterations to the Haryana Affordable Housing Policy, 2013, and the Deen Dayal Jan Awas Yojna may exert influence on the company's business, prospects, and operational outcomes.

• Several of the firm's projects are still in their preliminary planning stages and necessitate approvals and renewals. Any delays in securing these necessary approvals may compel the company to reschedule both ongoing and upcoming projects.

• Substantial escalations in prices, shortages, or delays in the availability of construction materials, contract labor, and equipment can disrupt estimated construction costs and timelines, potentially leading to cost overruns.

In conclusion, Signature Global (India) Limited is a prominent real estate developer specializing in affordable and mid-segment housing in Delhi NCR. Their IPO is set to be listed on October 4, 2023, and aims to raise funds for various purposes, including debt repayment and business expansion. While the subscription rate for the IPO has been relatively low with signature global India share Price at Rs.366 to 385, the company boasts several qualitative strengths and faces risks associated with market fluctuations, policy changes, project approvals, and construction challenges. Investors should keenly consider these factors while making investment decisions.

 

Frequently Asked Questions

1. What is Signature Global (India) Limited known for?

Signature Global (India) Limited is known for its real estate development business, primarily focusing on affordable and mid-segment housing in Delhi NCR.

2. When is the Signature Global (India) Limited IPO subscription period?

The subscription period for Signature Global (India) Limited IPO is from September 20, 2023, to September 22, 2023.

3. When is the expected listing date for the Signature Global (India) Limited IPO?

The provisional listing date for the Signature Global (India) Limited IPO is set for October 4, 2023.

4. What is the purpose of the Signature Global (India) Limited IPO?

The IPO aims to achieve several objectives, including repaying company loans, providing funds to subsidiaries, and acquiring land for business growth.

5. What are the key factors to consider before investing in the Signature Global (India) Limited IPO?

Potential investors should consider the company's qualitative strengths, such as its market position and sustainable development focus. Additionally, they should be aware of the risks associated with market fluctuations, policy changes, project approvals, and construction challenges.

6. What is the promoter's shareholding in Signature Global (India) Limited before and after the IPO?

Pre-IPO, the promoters held 78.36% of the company's shares, which will reduce to 69.63% post-IPO.

 

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Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.