Gurugram-based affordable housing developer, Signature Global (India) Ltd — backed by KKR and HDFC Capital — has filed draft papers with SEBI for a ₹1,000-crore IPO.
The IPO consists of a fresh share issue of ₹750 crore and an offer for sale (OFS) of up to ₹250 crore by shareholders and promoters.
The OFS comprises up to ₹125-crore share sale each by Sarvpriya Securities Pvt Ltd and International Finance Corporation.
A part of the proceeds and aggregate outstanding borrowings, will go towards repayment of debt, which includes some of its subsidiaries. The company’s aggregate outstanding borrowings, including that of its subsidiaries, stood at ₹1,622 crore as on May 31.
Focus on the Delhi-NCR
Signature Global (India) said it was the largest affordable and mid-segment (homes priced below ₹80 lakh) housing-focused real estate development company in the Delhi-NCR with a market share of 19 per cent.
Till March 31, it had sold over 23,400 units (both residential and commercial put together) all within the Delhi-NCR. It has 27 ongoing projects of 16.10 million sq ft saleable area.
In FY22, revenues stood at over ₹901 crore, while net loss was around ₹116 crore.
“We have incurred net loss in the past, and we may not be able to achieve or maintain profitability in the future,” it said in the DRHP adding that in FY20, FY21 and FY22, the company had net cash inflow from operating activities of ₹72.5 crore, ₹36.4 crore and ₹205.2 crore, respectively. “However, due to factors such as our accounting policy on revenue recognition, the company made net losses (during these years)”.
ICICI Securities, Kotak Mahindra Capital and Axis capital are the lead managers for the issue.