Realty firm Signature Global is open for subscription from Wednesday and the offer closes on September 22.
The company based out of Delhi-NCR plans to raise ₹730 crore through the IPO. In July last year, Signature Global had filed the Draft Red Herring Prospectus (DRHP) with capital markets regulator Sebi to launch its IPO.
According to the Red Herring Prospectus (RHP) filed earlier this week, the total size of the IPO is up to ₹730 crore, comprising fresh issue of shares of up to ₹603 crore and Offer For Sale (OFS) of up to ₹127 crore.
The IPO has fixed a price band of ₹366-385 per share for its maiden public issue. The company has raised ₹318.5 crore from anchor investors, including Nomura. In a regulatory filing, the company informed that under Anchor Investors (AIs) portion in the public issue, 82,72,700 equity shares have been subscribed at ₹385 per equity share.
“Our net debt stood at around ₹1,100 crore at the end of the last fiscal year. We propose to utilise ₹432 crore for debt reduction,” Signature Global Chairman Pradeep Aggarwal was quoted by PTI as saying.
The balance fund will be used for inorganic growth through land acquisitions and general corporate purposes.
Grey market premium
Grey market premium is the price at which the shares are being traded in the grey market. According to topsharebrokers.com, the shares of Signature Global had a GMP of ₹34 at 9:58 pm.
What experts say
“Signature Global’s continuous negative financial performance has made the issue price exorbitantly high and the negative P/E has made the prospects gloomy. The company has regional presence only and majorly in affordable housing. Investors may skip this IPO and wait for the better valuations to consider”, Dr. Ravi Singh, market expert, told Hindustan Times.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Hindustan Times. We advise investors to check with certified experts before taking any investment decisions.