The initial public offering (IPO) of real estate developer Signature Global (India) has opened for subscription today, September 20. The three-day bidding will conclude on Friday, September 22.

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Signature Global has fixed a price band of Rs 366-385 per equity share for its Rs 730-crore IPO. The lot size is 38, which means that investors need to bid for a minimum of 38 equity shares and in multiples thereafter.

The IPO includes a fresh issue of equity shares aggregating up to Rs 603 crore and an offer for sale (OFS) of equity shares aggregating up to Rs 127 crore. The selling shareholder in the OFS is International Finance Corporation.

Signature Global has said that it would utilise the proceeds from the fresh issue of equity shares towards debt repayment, infusion of funds in certain subsidiaries, inorganic growth through land acquisitions and general corporate purposes.

In an interview with CNBC-TV18, Signature Global chairman Pradeep Aggarwal, and chief executive officer Rajat Kathuria said, “The fresh issue being raised through IPO, will be used to pare down debt and the focus is on reducing the debt in the balance sheet."

“The company is also looking at opportunities for acquisitions as and when it comes,” the top executives of Signature Global added.

The real estate firm’s gross debt stood at Rs 1,700 crore and net debt was at Rs 1,100 crore as of FY23. The company collected Rs 1,920 crore from customers and operations last year. “Net debt-to-equity ratio post listing will be 1:1,” said Aggarwal.

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The IPO is being made through a book-building process, where 75 percent of the shares have been set aside for qualified institutional buyers (QIBs), 15 percent for non-institutional investors (NIIs) and the remaining 10 percent for retail investors.

ICICI Securities, Axis Capital and Kotak Mahindra Capital Company are the book-running lead managers to the issue, while Link Intime India Pvt. Ltd is the registrar.

The basis of IPO share allotment is likely to be fixed by September 27. In case of non-allotment, refunds will be credited to bank accounts of unsuccessful investors by September 29.

In case of successful allotment, shares are likely to be credited to the demat accounts of eligible investors by October 3. The stock should get listed on both BSE and NSE on October 4.

Signature Global has already raised Rs 318.5 crore via the anchor book on September 18, a day before the opening of the IPO. The company has finalised allocation of 82.72 lakh equity shares of the company to anchor investors at Rs 385 per share.

A total of 19 anchor investors invested in Signature Global. These include global names like Nomura Trust, Morgan Stanley, BNP Paribas Arbitrage - ODI, Goldman Sachs, and domestic investors like Kotak Mahindra Trustee, Quant Mutual Fund, Nippon India, Max Life Insurance Company, among others.

Signature Global is a Delhi NCR-based real estate company that caters to affordable and mid-priced housing. The company’s sales stood at Rs 3,430.6 crore in FY23. However, it made a loss of Rs 56 crore in the same year.

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(Edited by : Asmita Pant)