Signoria Creation Ltd. IPO: Review, Valuation, Date & GMP

Signoria Creation Limited IPO  - Complete Overview

Established in 2019, Signoria Creation Limited specializes in the manufacturing and marketing of women's apparel, including Kurtis, pants, tops, Co-ord Sets, dupattas, and Gowns, under its renowned brand name "Signoria."

The company operates two manufacturing units, with Unit-I located at 324, Ayekar Nagar II, near RICCO Industrial Area, Mansarovar, Jaipur, Rajasthan – 302020, and Unit-II situated at H1-74, RIICO Industrial Area, Mansarovar, Jaipur. 

Notably, the company acquired an additional 501.33 square meters of land adjacent to its existing factory on September 08, 2022, for garment manufacturing activities, currently under construction. 

The operational capacity of the company exceeds 4,77,000 pieces of quality garments for the fiscal year 2022-2023. The company upholds ISO 9001:2015 certification for its Quality Management System, awarded by Quality Research Organisation. 

Demonstrating remarkable growth, the company's revenue from operations surged from 585.23 lakhs in 2020-21 to 1914.92 lakhs in 2022-23.

Signoria Creation Limited IPO Overview:

Signoria Creation Limited IPO date is slated to be open for subscription from March 12, 2024, to March 14, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Signoria Creation Limited IPO price is set in the range of Rs.61 to Rs.65 per share. 

The total issue size of this IPO amounts to Rs.9.28 Cr. The company has allocated 35% for retail investors, 50% for institutional investors, and 15% for non-institutional investors. 

Company Financial

Compared to the previous fiscal year, Signoria Creation Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has increased, while total borrowings also slightly rose.

(Amount in Lakhs)

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	2,614.56	2,334.92	950.76
Total Revenue	652.92	1,915.81	1,181.64
PAT	64.52	231.05	67.53
Net worth	647.75	583.23	150.88
Reserve & Surplus	536.75	472.23	100.88
Total Borrowings	1,263.93	1,050.26	376.84

Revenue Generated from the company ion past financial years

(Amount in Lakhs)

Particulars	For the Period ended on September 30, 2023	FY 23	FY 22
Kurti & Pant & Dupatta (3 Pcs)	293.91	746.05	729.87
Kurti & Pant (2 Pcs)	177.25	653.37	116.86
Kurti (1 Pcs)	72.99	220.98	228.76
Gowns	13.91	39.26	57.43
Top (1 Pcs)	71.94	200.49	-
Co-ord set (2 Pcs)	13.71	-	-
Total	643.71	1,806.15	1,132.92
Others	9.14	54.77	48.68
Total	652.85	1,914.92	1,181.60

 

The Objective of the Issue

The company intends to utilize the Net Proceeds from the Fresh Issue to fund the following objectives:

• Meeting the working capital requirements of the company.

• Catering to general corporate purposes.
  
  

Peers of Signoria Creation Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Signoria Creation Limited	10	10.41	-
Nandani Creations Limited	10	0.11	585.90

 

 

 

Evaluation

The IPO is priced within the range of Rs.61 to Rs.65 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 6.94 from the last year, the resulting P/E ratio is 9.37x.

• Taking into account the weighted EPS of Rs 19.44 for the last three years, the P/E ratio amounts to 3.34x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 585.90x.

As a result, the IPO price range, with a P/E ratio ranging from 9.37x to 3.34x, seems aggressively priced in comparison to the industry average of 585.90x.

IPO's Strengths 

• Experience management team and workforce.

• Well-established manufacturing facility in place.

• Emphasis on quality assurance and safety protocols.

• Commitment to cost leadership and timely project execution.

• Strong existing relationships with clients.

• Cordial relationship between management and labor.

IPO weaknesses

• The company is vulnerable to shifts in market trends, fashion, and consumer preferences, as well as heightened competition.

• The company is highly dependent on a limited number of suppliers.

• Operation within a highly competitive and fragmented industry landscape.

• Ongoing litigations against the company and certain directors.

• Obligation to uphold various licenses, approvals, registrations, consents, and permits as part of regular business operations.

• Negative cash flow from operating, investing, and financing activities.

 

 

IPO GMP Today 

The Latest GMP of Signoria Creation Limited IPO is Rs.60.

 

Signoria Creation Limited IPO timetable (Tentative)

Signoria Creation Limited IPO is scheduled from March 12 to March 14, 2024, with allotment on March 15, refund initiation on March 18, and listing on March 19, 2024.

Events	Date
IPO Opening Date	March 12, 2024
IPO Closing Date	March 14, 2024
IPO Allotment Date	March 15, 2024
Refund initiation	March 18, 2024
IPO Listing Date	March 19, 2024

Signoria Creation Limited IPO Details 

Signoria Creation Limited IPO, with a face value of Rs.10 per share, opens on March 12 and closes on March 14, 2024, offering 1,428,000 shares at Rs.61 to Rs.65 per share, with a lot size of 2000 shares, aiming to raise Rs.9.28 Cr, and will be listed on NSE SME.

IPO opening & closing date	March 12, 2024 to March 14, 2024
Face value	₹10 per share
Issue Price	₹61 to ₹65 per share
Lot Size	2000 Shares
Price of 1 lot	₹130,000
Issue Size	1,428,000 shares (aggregating up to ₹9.28 Cr)
Fresh issue	1,428,000 shares (aggregating up to ₹9.28 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

Signoria Creation Limited IPO Lot Details 

For Signoria Creation Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (2000 shares) at Rs.130,000 while for HNI investors, the minimum investment is 2 lots (4000 shares) at Rs.260,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

Signoria Creation LimitedSignoria Creation LimitedIPO Reservation 

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

Promoters and Management of Signoria Creation Limited

• Vasudev Agarwal 

• Babita Agarwal 

• Mohit Agarwal 

• Kritika Chachan

Pre-issue Promoter shareholding	100.00%
Post-issue Promoter shareholding

 

 

 

Signoria Creation LimitedIPO Lead Managers

• Holani Consultants Private Limited

Dividend Policy

The company didn’t pay any dividends in the past three fiscal years. The future payment of the dividend depends on several factors like profits, past dividend trends, capital needs, and other relevant considerations evaluated by the Board.

 

 

 

Conclusion

Signoria Creation is an up-and-coming women's brand known for its traditional designs and outfits. With a track record of consistent growth in financial performance, the company presents an attractive investment opportunity. Investors are advised to consider allocating their funds to this upcoming IPO only after conducting thorough analysis for optimal outcomes.

 

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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