Signature Global IPO Sails Through, Subscribed 1.61 Times on Day 2

21 Sep 2023 , 07:57 PM

The public offering of Signature Global (India) has continued to garner a strong response from investors, achieving a subscription rate of 1.61 times on the second day of bidding, which was September 21. The total number of bids received for this real estate developer amounted to 1.81 crore equity shares, surpassing the offer size of 1.12 crore shares.

High-net-worth individuals (non-institutional investors) and retail investors exhibited remarkable enthusiasm, subscribing at rates of 3.06 times and 2.53 times, respectively, their allocated quotas, which represented 15% and 10% of the total offer size.

Qualified institutional buyers demonstrated substantial interest as well, bidding for 62% of the shares reserved for them, which constitutes 75% of the overall issue size.

On the first day of bidding, which occurred on September 20, the Rs 730-crore public issue of this Delhi NCR-based affordable housing company achieved a subscription rate of 54%.

The price band for this offering, which is set to close on September 22, is fixed at Rs 366-385 per share.

Signature Global aims to raise Rs 603 crore through a fresh issue and Rs 127 crore through an offer-for-sale (OFS) at the upper price band. It’s important to note that the International Finance Corporation is the sole seller in the OFS.

The company has successfully completed numerous real estate projects under the DDJAY – APHP (The Affordable Plotted Housing Policy or the Deen Dayal Jan Awas Yojana – APHP). Currently, there are 29 ongoing projects covering 216.57 acres of land and 19 forthcoming projects spanning 379.07 acres of land.