Signatureglobal (India) Limited, is a real estate development company majorly focusing on offering affordable and mid-segment housing, debuted with a 15.6% premium, at Rs 445 per share on the BSE. On the NSE, the stock opened at Rs 444, marking a 15.3% increase from its initial public offering price of Rs 385 per share.
As of the time of writing, the stock is trading at Rs 447 on the BSE, with intraday highs and lows of Rs 451.10 and Rs 444.10, respectively. The current market capitalization of the company stands at Rs 6256 crore.
The company plans to primarily utilize the proceeds from the new issue to Infusion of funds in certain of its Subsidiaries, namely Signatureglobal Homes, Signature Infrabuild, Signatureglobal Developers, and Sternal Buildcon, for the repayment or prepayment, in full or in part, of certain borrowings availed by the Subsidiaries, to repay company’s debt, to acquire land for inorganic growth and for general corporate purposes.
ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book-running lead managers of the Signatureglobal India IPO, while Link Intime India Private Ltd is the registrar for the issue.
Signatureglobal (India) Limited, incorporated in 2000, is a real estate development company focused on affordable and mid-segment housing in the Delhi National Capital Region (Delhi NCR). They began with the Solera project in Gurugram, Haryana, and have since sold 27,965 residential and commercial units in the Delhi NCR region.
It aligns with government policies, such as the Affordable Housing Policy, 2013, and the Deen Dayal Jan Awas Yojana (“DDJAY – APHP”), to make homeownership dreams a reality. They aim to provide “value homes” with appealing designs and amenities while continually enhancing project value and living environments.
Let’s recap the subscription history of the company.
On September 22, 2023, the final day of the IPO window, the IPO witnessed a subscription rate of 12.50 times. The public issue received an overwhelming response, with the retail category being subscribed 7.17 times, the QIB category achieving a subscription rate of 13.37 times, and the NII category reaching a subscription rate of 14.24 times.
The company attracted Rs 318.50 crore from various anchor investors by allocating 82.72 lakh equity shares at Rs 385 per share. The lock-in period for these anchor investors extends until February 7, 2024.
The IPO price range was set between Rs 366 and Rs 385, with a face value of Rs 10 per share and a lot size of 38 shares. The total size of the company’s IPO was Rs 730 crore, and the final share issue price was fixed at Rs 385 each.
Following is the financial performance of the company:
|Particulars||FY21 (Rs Cr)||FY22 (Rs Cr)||FY23 (Rs Cr)|
|Net Profit / (Loss)||-86.28||-115.50||-63.72|
The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions the broader indices have slipped from their all-time high levels, investors who applied for listing gains have already earned 16% on the listing day alone and can choose to book the profit it has generated. Furthermore, the company has not reported profits in the last three years as mentioned above.
On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.