SignatureGlobal India IPO: Review, Valuation & GMP

Signatureglobal (India) Limited - Complete Overview

Established in the year 2000, Signatureglobal (India) Limited is a real estate development company specializing in affordable and lower-middle-segment housing. The company operates primarily in the National Capital Region of Delhi and stands as one of the largest players in the region.

Signatureglobal began its journey with the launch of its Solera project, situated on 6.13 acres of land in Gurugram, Haryana. Over the years, the company has expanded its operations significantly. As of March 31, 2023, it has successfully sold 27,965 residential and commercial units, all within the Delhi NCR region.

The company's sales have exhibited remarkable growth, achieving a compounded annual growth rate of 42.46%, escalating from Rs. 16,902.74 million in Fiscal 2021 to Rs. 34,305.84 million in Fiscal 2023. As of March 31, 2023, Signatureglobal (India) has sold 25,089 residential units with an average selling price of Rs. 3.60 million per unit.

Signatureglobal (India) has strategically focused on the Affordable Housing ("AH") and Middle-Income Housing ("MH") segments, aligning with the Government of India and state government policies.

The primary mission of the company is to make housing affordable for individuals across the middle and lower-income groups, enabling them to realize their dream of owning a house. 

The company has been actively engaged in developing projects in accordance with the Affordable Housing Policy ("AHP"), 2013, as notified by the Town and Country Planning Department, Government of Haryana, and the Affordable Plotted Housing Policy, also known as the Deen Dayal Jan Awas Yojana ("DDJAY-APHP").

Signatureglobal (India) offers "value homes" with appealing designs and amenities to enhance the quality of life and create a better living environment, achieved through comprehensive community facilities and collaboration with renowned architects.

 

 

What does the company do? 

Signatureglobal (India) Limited is a real estate development company dealing in affordable and lower mid-segment housing.

 

IPO Overview

Signatureglobal India's IPO date is scheduled from September 20 to September 22, 2023. The total issue size of this upcoming IPO is Rs. 730.00 Crores.

The company has set the IPO price range at Rs. 366 to Rs. 385 per share, with a face value of Rs. 1 per share. In terms of allotment, Signatureglobal India has allocated 75% of the portion to institutional investors, 15% to non-institutional investors, and 10% to retail investors.

Signatureglobal India IPO is set to be listed on both the NSE and BSE on October 4, 2023. For more detailed information, please continue reading the IPO review.

 

Signatureglobal (India) Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	20 September 2023
IPO Closing Date	22 September 2023
IPO Allotment Date	27 September 2023
Refund initiation	29 September 2023
IPO Listing Date	4 October 2023

 

Signatureglobal (India) Limited IPO Details

IPO Opening & Closing Date	20 September to 22 September 2023
Face Value	Rs.1 Per Share
Issue Price	Rs.366 to Rs.385 per share
Lot Size	38 Shares
Price of 1 Lot	Rs. 14,630
Issue Size	18,961,039 Shares (aggregating up to Rs. 730.00 Cr)
Offer for Sale	3,298,701 shares of Rs. 1 (aggregating up to Rs. 127.00 Cr)
Fresh Issue	15,662,338 Shares (Aggregating up to Rs. 603.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Signatureglobal (India) Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	68 Lot

 

Signatureglobal (India) Limited IPO Reservation

Institutional Share Portion	75%
Non-institutional Share Portion	15%
Retail Share Portion	10%

 

Company Financial

Amount in Crores

Period	FY - 21	FY - 22	FY - 23
Total Assets	3762.37	4430.85	5999.13
Total Revenue	154.72	939.60	1585.88
PAT	-86.28	-115.50	-63.72
Net Worth	-206.87	-352.22	47.54
Reserve & Surplus	-210.78	-364.01	34.08
Total Borrowings	1176.38	1157.53	1709.75

 

The revenues generated from projects located in Gurugram and Sohna

(Amount in Million)

Location of Projects	FY 21	FY 22	FY 23
Gurugram	103.98	4,750.49	8,178.29
Sohna	-	3,301.81	5,568.33

 

Revenue from the sale of real estate properties generated from  AHP  and DDJAY-APHP

(Amount in Million)

Category	FY 21	FY 22	FY 23
AHP	103.98	7,394.35	8,536.60
DDJAY-APHP	209.00	1,115.63	6,653.42

 

Objective of the Issue

The funds raised by the company will be allocated towards achieving the following objectives:

• Repayment or partial prepayment of specific borrowings obtained by the company.
• Capital infusion into certain subsidiaries, namely Signatureglobal Homes, Signatureglobal Developers, Signatureglobal Business Park, and Sternal Buildcon, for the purpose of repaying or partially prepaying certain borrowings incurred by these subsidiaries.
• Pursuing inorganic growth opportunities through land acquisitions and addressing general corporate needs.

 

Promoters and Management of Signatureglobal India Limited

The company's promoters include Pradeep Kumar Aggarwal, Lalit Kumar Aggarwal, Ravi Aggarwal, Devender Aggarwal, Pradeep Kumar Aggarwal HUF, Lalit Kumar Aggarwal HUF, Ravi Aggarwal HUF and Devender Aggarwal HUF and Sarvpriya Securities Private Limited.

Pre-issue Promoter shareholding	78.36%
Post-issue Promoter shareholding	69.63%

 

Peer Comparison

Below are the listed peers of the company

Company Name	Total income (Rs. in million)	P/E	EPS (Diluted) (Rs.)
Signatureglobal (India) Limited	15,858.78	-	(5.44)
DLF Limited	60,121.40	65.69	8.22
Godrej Properties Limited	30,390	82.40	20.55
Macrotech Developers Limited	96,112	76.23	10.09
Prestige Estates Projects Limited	83,150	27.54	23.49
Sobha Limited	34,024.33	61.97	10.99

 

IPO's Valuations

The Signatureglobal India IPO is priced in the range of Rs. 366 to Rs. 385 per share, with an EPS of (-7.39). When we calculate the IPO valuation using the upper band of the issue price, the company's P/E ratio stands at approximately (52).

 

Dividend Policy 

According to the Signatureglobal India IPO DRHP, the company has not declared dividends in the past. Any future dividend payments will be contingent upon the financial performance of the company.

 

IPO's Strengths 

• Leading the real estate market in Delhi NCR within the affordable, lower-middle, and mid-segment sectors.
• A well-established brand with a robust distribution network and advanced digital marketing capabilities, resulting in accelerated sales.
• Demonstrating rapid growth potential and the capacity for swift scalability.
• Offering an affordable yet aspirational lifestyle, complete with amenities, strategically situated at key locations.
• Providing standardized product choices, efficient project execution, and a comprehensive in-house approach.
• Maintaining positive operating cash flows while keeping debt levels low.
• Dedicated to a strong focus on sustainable development practices.
• Backed by experienced promoters, a professional senior management team, and investments from prestigious investors.

 

IPO Weaknesses 

• The company has previously experienced net losses and negative net worth.
• The company's profitability is heavily reliant on the performance of the real estate market in the Delhi-NCR region.
• Potential adverse impacts may arise due to the withdrawal of certain benefits associated with the Haryana Affordable Housing Policy, 2013, and the Deen Dayal Jan Awas Yojna.
• The company has a significant dependency on the residential development business, particularly in the affordable housing category.
• Any increases in land prices or land scarcity for development may negatively impact the company's operations.
• The company requires approvals and renewals, which are part of its regular business processes.
• There are unsold units within the ongoing and completed projects of the company.
• The company's subsidiaries have faced losses in the past years.
• The company operates within a competitive industry.
• Nine of the company's completed projects under AHP lack completion certificates, while 12 ongoing projects under AHP and 14 ongoing projects under DDJAY-AHP have yet to receive occupation certificates from relevant authorities, as applicable.

 

 

IPO GMP Today

Latest GMP of Signatureglobal (India) IPO is Rs. 34.

 

Conclusion

Signatureglobal (India) operates within a highly competitive industry and has faced losses in the past. Furthermore, the company currently maintains a negative PE ratio. Nevertheless, the company has made substantial investments in large projects, and improved sales performance has the potential to reshape its future prospects. Investors are advised to consider a thorough analysis before deciding to participate in this IPO.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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