Signatureglobal (India) Limited IPO

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i. Signatureglobal is the largest real estate development company in the National Capital Region of Delhi (“Delhi NCR”) focussed on affordable and mid segment housing in terms of units supplied (in the below ₹ 8 million price category) between 2019 and 2021 with a market share of 19%.

ii. Signatureglobal commenced operations in 2014 through its Subsidiary, Signature Builders Private Limited, with the launch of its Solera project on 6.13 acres of land in Gurugram, Haryana. They have grown its operations over the years and in less than a decade, and as of March 31, 2022, they had sold 23,453 residential and commercial units, all within the Delhi NCR region, with an aggregate Saleable Area of 14.59 million square feet. Their Sales (net of cancellation) have grown at a compounded annual growth rate (“CAGR”) of 142.62%, from ₹ 4,400.10 million in Fiscal 2020 to ₹ 25,900.38 million in Fiscal 2022. As of March 31, 2022, they have sold 21,478 residential units with an average selling price of ₹ 2.81 million per unit.

iii. The company is strategically focused on GoI and state government policies supporting affordable housing, specifically the Affordable Housing Policy, 2013 notified by the Town and Country Planning Department, Government of Haryana (“AHP”) and the Affordable Plotted Housing Policy or the Deen Dayal Jan Awas Yojana (“DDJAY – APHP”). Each of the policies is focused on affordable and mid segment housing.

iv. The company has an extensive distribution network focussed on the customer segments they target, with 484 channel partners and an inhouse team of 43 employees engaged in direct sales and 96 employees for indirect sales

Competitive Strengths
i. Largest affordable and mid segment real estate developer in Delhi NCR
ii. Well-established brand, strong distribution network and digital marketing capabilities translating into faster sales
iii. Fast growing with ability to scale up rapidly

 

 

Objects of the Signatureglobal (India) Limited IPO:

The Company proposes to utilize the Net Proceeds towards the funding of the following objects: i. Re-payment or pre-payment, in full or in part, of certain borrowings availed by the Company; ii. Infusion of funds in certain of our Subsidiaries, namely Signatureglobal Homes, Signature Infrabuild, Signatureglobal Developers, and Sternal Buildcon for re-payment or pre-payment, in full or in part, of certain borrowings availed by the Subsidiaries; iii. Inorganic growth through land acquisitions and general corporate purposes.  
DRHP of Signatureglobal (India) Limited IPO

Signatureglobal (India) Limited IPO Details:

Issue Type: Book Built Issue IPO
Issue Size: 1,000.00 Cr.
Listing At: NSE,BSE

Promoters And Management:

i. Pradeep Kumar Aggarwal is the Chairman and Whole-time Director of the Company. He has completed his senior secondary education from Motiram Baburam Inter College, Haldwani, Nainital affiliated to Uttarakhand Board. He was previously associated with Paywell Securities Private Limited for five years. Further he has served as managing director on the board of directors of SMC Comtrade Limited, a subsidiary of SMC Global Securities Limited for a period of 10 years and was responsible for overseeing the financial capital market and commodity market segments. Further, he was also associated with SMC Global Securities Limited for a period of over 10 years. He has over eight years of experience in real estate industry. He has been appointed as a director on the Board of the Company since November 2, 2017. ii. Lalit Kumar Aggarwal is the Vice Chairman and Whole-time Director of the Company. He has completed his senior secondary education from Central Board of Secondary Education, Delhi. He has been awarded with a certificate of home nursing in the year 1988 from Saint John Ambulance Association. He was associated with Signatureglobal Comtrade Private Limited (previously known as P.P. Comtrade Private Limited) for six years. He was also associated with SMC Comtrade Limited for seven years where he was responsible for overseeing the arbitrage business. He also served as a whole-time director on the board of SMC Real Estate Advisors Private Limited for a period of over two years and was responsible for overseeing the real estate market segment. He has an experience of over seven years in the real estate sector. He has been appointed as a director on the Board of the Company since February 15, 2022. iii. Ravi Aggarwal is the Managing Director of the Company. He is a fellow member of the Institute of Chartered Accountants of India. He was previously associated with Paywell Securities Private Limited for a year. Further, he was associated for over a year with SAM Global Securities Limited which was merged with SMC Global Securities Limited, where he was responsible for operations relating to arbitrage and share brokerage distribution respectively. He served as a director on the board of SMC Insurance Brokers Private Limited for a period of over five years and his role included overall business development and distribution of insurance segments. He has over nine years of experience in real estate industry. He has been appointed as a director on the Board of the Company since November 5, 2015.  

Financials of Signatureglobal (India) Limited IPO:

Particulars ( In Crore ) 2022 2021 2020
Revenue from Operations 901 82 241
Other Income 38 23 21
Gain on fair valuation of derivative Instruments - 48 -
Total Revenue 939 154 263
Cost of Sales 819 66 185
Purchase of Stock-in-Trade 0.2 0.4 1
Employee Benefits Expense 64 43 31
Loss of fair valuation of derivative instruments 14 - 12
Impairment losses on Financial Assets 1 1 1
Other Expenses 86 52 44
EBITDA -46 -9 -15
Depreciation & Amortisation 20 11 4
Finance Cost 69 70 54
EBIT -67 -21 -19
OPM (%) -4.96% -5.98% -5.75%
PBT -136 -97 -74
Taxes (Credit) -20 -11 -17
PAT -108 -114 -78
NPM (%) -11.54% -73.72% -29.84%
No.of Shares 24 24 24
EPS -4.51 -4.74 -3.26

Comparison With Peers:

Name of the Company Revenue (Cr) Profit (Cr) P/E EPS CMP Mcap (Cr)
Signatureglobal (India) Limited 939 -108 N/A -4.51 N/A N/A
DLF Limited 6,137 1,500 62.78 6.06 350 86,636
Godrej Properties Limited 2,585 351 131.87 12.68 1092 30,364
Macrotech Developers Limited 9,579 1,209 42.82 26.28 806 38,846
Prestige Estates Projects Limited 6,600 1,215 17.21 28.69 399 16,018
Sobha Limited 2,821 117 57.59 12.32 592 5,607

Recommendation on Signatureglobal (India) Limited IPO:

To be updated shortly
 

Lead Manager of Signatureglobal (India) Limited IPO:

  1. Axis Capital Limited
  2. ICICI Securities Limited
  3. Kotak Mahindra Capital Company Limited

Registrar of Signatureglobal (India) Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Signatureglobal (India) Limited 13th Floor, Dr. Gopal Das Bhawan, 28 Barakhamba Road, Connaught Place, New Delhi 110 001 Phone: +91 11 4928 1700 Email: cs@signatureglobal.in Website: http://www.signatureglobal.in/

Discussion on Signatureglobal (India) Limited IPO:

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