Shares of IFC-backed Signatureglobal will make a debut. The company has fixed the price at ₹385, at the upper end of the price band.
The company launched ₹730-crore IPO last week, which contained a fresh of ₹603 crore and offer-for-sales by IFC worth ₹127 crore. The issue was a strong response by subscribing over 12 times with all three categories of investors - retail, QIBs and HNIs displaying keen interest.
Delhi-NCR-based Signatureglobal had raised ₹318.5 crore from anchor investors. Signatureglobal -- backed by HDFC Capital and IFC -- said ₹432 crore will be used to reduce debt. The balance fund will be used for inorganic growth through land acquisitions and general corporate purposes.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said: Signatureglobal is expected to be around ₹428, considering its GMP.
Signature Global is a leading real estate developer in Delhi-NCR, focused on affordable and lower-mid-segment housing. The company has strong brand recognition and a large land bank. “It is also well-positioned to benefit from the growing demand for affordable housing in India. However, the company has a loss-making history and faces concentration risk. The company is also facing stiff competition from other real estate developers. Still, the IPO was well received by investors and subscribed 12.5 times, which is justifying this premium, and thus we can expect a decent listing of this IPO,” he added.