IPO listed on 27 Sep'23
Signatureglobal (India) Ltd
Minimum Investment
₹ 14,630 / 38 shares
Grey market premium
₹ 34 (9% premium)
Issue price
₹ 385
Listing price
₹ 444
Listing gains
59 (15%)
Listing on
Sep 27, 2023
Our Verdict:
Avoid
- While the company has witnessed significant growth in revenue, it hasn't achieved profitability yet. The real estate sector inherently requires significant capital. Considering the company's weak financial health, considerable debt, and extensive operational capital needs, its potential to seize growth opportunities could be limited. The consistent losses over the past three fiscal years add to our reservations about this IPO.
- Bearing these factors in mind, we recommend monitoring the company's performance for the upcoming two quarters prior to making any investment decisions.
About the company
Founded in
28 Mar'00
Managing director
Ravi Aggarwal
- Signatureglobal (India) Ltd is the largest real estate developer in Delhi NCR, specializing in affordable and lower mid-tier housing. From 2020 up until the end of March 2023, it held a dominant market position in the housing category priced below Rs 8 million, boasting a 19% market share.
- As of March 31, 2023, the company has successfully developed a total area of 7.64 million square feet across its completed projects. Additionally, there are ongoing projects that span 1.37 million square feet, comprising 11,427 residential and 932 commercial units, all of which have secured occupation certificates.
STRENGTHS
- Impressive Growth: From FY21 to FY23, Signatureglobal showcased a remarkable CAGR of 335% in its revenue, which soared to Rs 1,554 crore by FY23.
- Turnaround in EBITDA: After making a positive shift with an EBITDA of Rs 27 crore in FY22, it further escalated to an impressive Rs 216 crore in FY23.
RISK FACTORS
- Weak Track Record: Development of real estate projects involves significant expenses. A company that has consistently reported losses raises red flags as it makes it hard to gauge when or if the company will turn profitable.
- Escalating Debt: The company has seen a substantial rise in its net debt, growing at a compound annual rate of 40% between FY21 and FY23, amounting to Rs 1,094 crore by the end of FY23.
- Negative Net Worth: Over the last three fiscal years, the company displayed a deeply negative net worth twice. This net worth only showed a minor positive increase, standing at Rs 48 crore in FY23.
- Certificate Delays: As of March 31, 2023, 9 of the company's developed projects are yet to be awarded completion certificates. Additionally, 29 of their ongoing projects haven't acquired occupation certificates. The postponement or failure to acquire these certificates could substantially jeopardize the company's business and overall financial stability.
- Cash Flow Concerns: The company reported negative cash flow from its operations during FY23. If this trend of negative cash flow persists, it may severely impact the company's operations and potential growth.
Issue details
Issue type
Mainstream
Issue size
₹ 730 crore
Fresh Issue
₹ 603 crore
OFS
₹ 127 crore
Price range
₹ 366 - 385
Lot size
38 shares
Issue Objective
Net proceeds from the fresh issue will be utilised towards:
- Re-payment or pre-payment of certain borrowings availed by the company and its subsidiaries;
- Infusion of funds in subsidiaries and inorganic growth through land acquisitions; and
- General corporate purposes.
Dates
Bidding open
20 Sep'23
Bidding close
22 Sep'23
Allotment date
25 Sep'23
Refund date
26 Sep'23
Listing
27 Sep'23
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.