Signature Global made a remarkable debut on Dalal Street, marking a significant milestone in its stock market journey. The shares of Signature Global were officially listed at Rs 445 per share on the Bombay Stock Exchange (BSE), showcasing an impressive premium of 15.58 percent over the issue price of Rs 385 per share.
Simultaneously, on the National Stock Exchange (NSE), Signature Global shares experienced an equally robust debut, with a listing price of Rs 444 per share, constituting a premium of 15.32 percent over the IPO price.
Shivani Nyati, who serves as the Head of Wealth at Swastika Investment Ltd, offered insights into this notable listing. She mentioned, “The listing unfolded as anticipated, aligning with the positive response the IPO garnered. Signature Global holds a prominent position as a real estate developer in the Delhi-NCR region. However, it is important to acknowledge that the company has a history of incurring losses, faces concentration risk, and operates in a competitive landscape alongside other prominent developers.”
Nyati went on to provide guidance for investors in light of this listing, stating, “After this successful listing, investors may contemplate booking profits. Nevertheless, for those who wish to retain their holdings, it is advisable to maintain a stop loss at Rs 400.”
The initial public offering (IPO) of Signature Global was open for subscription from September 20 to September 22, garnering significant attention from investors. The IPO witnessed an impressive oversubscription rate of 11.88 times. Notably, retail investors displayed substantial enthusiasm, subscribing at a rate of 6.82 times for their allotted portion, while the Non-Institutional Investors' (NII) category saw an oversubscription rate of 13.54 times.
The Qualified Institutional Buyers (QIBs) segment demonstrated robust demand, exhibiting a subscription rate of 12.71 times.
The total issue size for the Signature Global IPO amounted to Rs 730 crore, consisting of a fresh issuance of 15,662,338 shares valued at Rs 603 crore and an offer for sale (OFS) of up to 3,298,701 equity shares worth Rs 127 crore by the promoter and promoter group.
The proceeds generated from the IPO will be directed towards various purposes, including the settlement or prepayment of a portion or all of the outstanding borrowings. Additionally, it will facilitate capital infusion into several subsidiaries, namely Sternal Buildcon, Signatureglobal Homes, Signatureglobal Developers, Signatureglobal Business Park, and Signatureglobal Homes. These funds will also support potential inorganic growth through prospective acquisitions.
ICICI Securities Ltd, Axis Capital Ltd, and Kotak Mahindra Capital Company Ltd acted as the book-running lead managers for the IPO, while Link Intime India Pvt Ltd took on the role of the IPO registrar.
