Real estate firm, Signatureglobal, initiated its initial public offering (IPO) on Wednesday with aspirations to raise as much as INR 730 crore. The IPO is divided into a fresh issue of shares estimated at INR 603 crore and an offer for sale (OFS) priced at INR 127 crore from the company's promoters and existing shareholders.
On the first day of bidding, a 22% overall subscription was recorded for the Signature Global IPO by 05:00 ET (09:00 GMT). The figure represents bids for 24.5 lakh shares against the available 1.1 crore shares, according to preliminary exchange data.
The company has reserved the total issue distribution as follows: 75% for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors.
The Signature Global IPO, which started on Wednesday, is set to conclude on September 22. The share allotment is slated to be confirmed by September 27, with shares credited to successful bidders' demat accounts by October 3. The company's shares are expected to be listed on BSE and NSE exchanges on October 4.
Potential investors have the chance to bid for Signatureglobal's shares within a price band of INR 366-385 per share, in multiples of 38 shares. This translates to INR 13,908-14,630 per lot.
The funds raised from the fresh issuance are primarily intended to be used for reducing debt and expanding business operations. Additionally, they will be directed towards inorganic growth through land acquisitions and general corporate purposes, as outlined in the company’s red herring prospectus (RHP).
Prior to the IPO's launch, Signatureglobal secured INR 318.5 crore from anchor investors including Nomura by allocating shares at INR 385 per share.
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