||Signature Global, an NCR-based real estate developer, plans to launch 21 million square feet of projects in the next three-five years, primarily in the mid-income housing sector as it looks to reduce debt, said founder and chairman Pradeep Aggarwal.
The company, supported by IFC and HDFC Capital Advisors, intends to generate as much as Rs. 730 crore through its upcoming initial public offering, scheduled to launch on September 20.
Originally established as an affordable housing-focused firm in 2014, Signature Global has transitioned toward mid-income housing due to rising costs of raw materials and land.
"We believe the real estate sector is currently thriving, and this presents the ideal opportunity to enter the market. The share of organised developers is steadily growing, and in our specific segment, we aspire to become the leaders," stated Aggarwal.
As of March 31, the company had reported a debt of Rs. 1,100 crore, and a significant portion of the funds raised through the IPO will be allocated toward debt reduction.
Signature Global has already successfully delivered 6 million square feet of projects, with an additional 17 million square feet currently under construction.
“We also have a pipeline of an additional 21 million square feet, and if the opportunity for any further acquisitions arises, we are prepared to pursue them,” Aggarwal said.
Given this robust pipeline, the company anticipates achieving annual pre-sales of Rs 10,000 crore in the next two-three years.
Signature Global has also established itself as one of the top 10 developers in terms of annual sales--Rs. 1,690 crore in FY21, Rs. 2,590 crore in FY22, and Rs. 3,430 crore in FY23.
"The infrastructure developments such as the Sohna elevated road, Mumbai Expressway, and Dwarka Expressway in Gurgaon have led to it becoming the prime destination for real estate development. We are keen to concentrate on this region, given the substantial demand it offers," said Aggarwal.
The company submitted its draft red herring prospectus in July last year. It postponed the IPO listing process due to market conditions but now deems it an opportune moment to proceed.
As per the red herring prospectus filed on Tuesday, the IPOs total size is slated to be up to Rs. 730 crore, including a fresh issue of shares valued at up to. Rs. 603 crore and an offer for sale of up to Rs. 127 crore.
The company has outlined its intentions to allocate Rs. 264 crore for the complete or partial repayment or prepayment of specific borrowings. Additionally, it plans to inject Rs. 168 crore into its subsidiaries to enable them to fully or partially repay or prepay certain borrowings they have availed of.