[ad_1]
New Delhi: Realty Firm Signature Global (India) Ltd has received approval from capital markets regulator SEBI for its initial public offer (IPO) to raise up to Rs 1,000 crore to liquidate debt and land acquisition.
In July, Signature Global, which focuses on the affordable and mid-housing segment, filed a draft red herring prospectus (DRHP) with SEBI to launch its maiden public issue.
As per the latest update on the regulator’s website, SEBI released its observation paper on November 24.
Issuance of observation letter in SEBI parlance means a green signal from the regulator for the proposed IPO.
According to DRHP, the IPO will consist of a fresh issue of equity shares of up to Rs 750 crore and an offer for sale (OFS) of up to Rs 250 crore. Promoter Sarvpriya Securities and investor International Finance Corporation will sell equity shares of up to Rs 125 crore each.
The company proposes to utilize the net proceeds from the fresh issue for repayment of debt, inorganic growth through land acquisition and for general corporate purposes.
The funds will also be used to pay down the debt of subsidiaries – Signature Global Homes, Signature Infrabuild, Signature Global Developers And Sternal Buildcon,
Signature Global commenced operations in 2014 through its subsidiary Signature Builders Pvt Ltd with the launch of the ‘Solera’ project on 6.13 acres of land in Gurugram, Haryana.
“We have scaled up our operations over the last few years and in less than a decade, and as of March 31, 2022, we have sold 23,453 residential and commercial units, all within the Delhi-NCR region, with a total sales of 14.59 million sq. leg with the qualified field,” DRHP said.
The company’s sales bookings (net of cancellations) grew at a compound annual growth rate (CAGR) of 142.62 per cent, from Rs 440 crore in 2019-20 to Rs 2,590 crore in 2021-22.
“Till March 31, 2022, we have sold 21,478 residential units with an average selling price of Rs 2.81 million per unit. We have strategically supported affordable housing, especially the Affordable Housing Policy (AHP), 2013 by the Center and the State Government policies notified by the Town and Country Planning Department, Government of Haryana and the Affordable Plotted Housing Policy or Deen Dayal Jan Awas Yojana (DDJAY-APHP),” the DRHP said.
Each policy focuses on affordable and middle class housing.
On the financial front, Signature Global’s total income is expected to increase to Rs 939.6 crore in FY 2021-22 from Rs 154.7 crore in the previous fiscal.
The total expenditure increased to Rs 1,076 crore in the previous fiscal from Rs 246.65 crore in FY 2020-21.
Signature Global reported a net loss of Rs 115.5 crore during the last financial year. Its net loss in the previous year was Rs 86.27 crore.
[ad_2]
Source link