Signature Global, an Indian real estate company, successfully raised INR 318.5 crore ($43 million) from 19 anchor investors, including Goldman Sachs and Morgan Stanley, on Tuesday. This significant investment comes just before the company’s public issue, which aims to raise INR 730 crore ($98 million).
The Gurugram-based firm has allocated 82,72,700 equity shares to the anchor investors at a price of INR 385 per share. Among these investors, three domestic mutual funds received nearly a third of the total allocation through five schemes, totaling INR 94.9 crore ($13 million). These funds include Kotak Mahindra Trustee, Quant Mutual Fund – Multi Asset Fund and Dynamic Asset Allocation Fund, and Bandhan Core Equity.
The company’s initial public offering (IPO) is scheduled to open on September 20 and will close on September 22. Signature Global has set the price band for its IPO at INR 366-385 per share. The shares are planned to be listed on the BSE and NSE stock exchanges by October 4.
The IPO comprises a fresh issue of equity shares worth INR 603 crore ($81 million) and an offer for sale (OFS) of shares amounting to INR 127 crore ($17 million). This is a reduction from the originally planned IPO size of INR 1,000 crore ($134 million), as stated in the draft red herring prospectus filed with SEBI in July last year.
Currently, Signature Global’s promoters hold a majority stake of 78.36%, with the remaining shares held by public shareholders. Notably, the International Finance Corporation (IFC), an investment arm of the World Bank Group, owns a 5.38% stake in the company.
The proceeds from the IPO will be used for debt repayment, inorganic growth through land acquisitions, and other general corporate purposes. The minimum investment amount for the application has been set at INR 14,630.
In terms of financial performance, Signature Global posted a net loss of INR 63.7 crore ($8.5 million) for the fiscal year ending March 31, 2023. This was an improvement from the previous financial year when the company registered a loss of INR 115.5 crore ($15.5 million). The company’s consolidated revenue from operations stood at INR 1,553.6 crore ($209 million) for the fiscal year ending March 31, 2023.
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