The ₹730-crore initial public offering of realty firm Signatureglobal (India) was subscribed 54 per cent on the first day of bidding on Wednesday. The public issue will close on September 22. The price band for the offer has been fixed at ₹366-385.
The total size of the IPO is up to ₹730 crore, comprising a fresh issue of shares worth up to ₹603 crore and an Offer for Sale (OFS) of up to ₹127 crore. Through OFS, International Finance Corporation will be selling its shares partly.
The IPO received bids for 60.35 lakh shares against 1.12 crore shares on offer. The portion for non-institutional investors was subscribed 1.42 times and the category for Retail Individual Investors (RIIs) got 89 per cent subscription.
See anchor investors
Delhi-NCR-based Signatureglobal had raised ₹318.5 crore from anchor investors, by deciding to allot 82,72,700 shares at ₹385 a share. The Nomura Trust and Banking Co Ltd, Kotak Mahindra Trustee Co Ltd, Kotak India EQ Contra Fund, Quant Mutual Fund, Nippon India Equity Opportunities AIF, Bandhan Core Equity Fund, Morgan Stanley Asia, Societe Generale, BNP Paribas Arbitrage and Goldman Sachs Singapore are among the major anchor investors.
Utility of funds
Signatureglobal — backed by HDFC Capital and International Finance Corporation — said ₹432 crore will be used to reduce debt. The balance fund will be used for inorganic growth through land acquisitions and general corporate purposes.
Signatureglobal, which focuses on the affordable and mid-income housing segment, had clocked ₹2,590 crore worth of sales bookings in the preceding fiscal.
ICICI Securities, Axis Capital and Kotak Mahindra Capital Company are the managers to the offer.
