Signature Global posts net loss of Rs 115.5 crore in FY22, Real Estate News, ET RealEstate
NEW DELHI: Property company Signature Global (India) Ltd, which plans to launch a Rs 1,000 crore public offering, posted a net loss of Rs 115.5 crore in the last financial year. Its net loss amounted to Rs 86.27 crore in the financial year 2020-21.
Last month, the Delhi-based company had filed the Red Herring (DRHP) draft prospectus with financial market regulator Sebi to raise up to Rs 1,000 crore through an initial public offering (IPO).
“We incurred post-tax losses of Rs(565.74) million, Rs(862.78) million and Rs(1,155.00) million for the financial years 2020, 2021 and 2022, respectively,” Signature Global said in the DRHP.
However, the total revenue increased to Rs 939.6 crore in the 2021-22 financial year from Rs 154.7 crore in the previous financial year. Total expenditure rose to Rs 1,076 crore in the last financial year from Rs 246.65 crore in the 2020-21 financial year.
Signature Global focuses on the affordable and mid-range housing segments with a 19% market share.
According to the DRHP, the IPO will include a new issue of shares worth up to Rs 750 crore and an offer to sell (OFS) up to Rs 250 crore. Promoter Sarvpriya Securities and investor International Finance Corporation will sell shares worth up to Rs 125 crore each.
The company proposes to use the net proceeds of the new issue for debt payment, inorganic growth through land acquisition and general corporate purposes.
The funds will also be used to pay the debt of the subsidiaries – Signature Global Homes, Signature Infrabuild, Signature Global Developers and Sternal Buildcon.
Signature Global commenced operations in 2014 through its subsidiary Signature Builders Pvt Ltd with the launch of the ‘Solera’ project on 6.13 acres of land in Gurugram, Haryana.
“We have grown our operations over the years and in less than a decade, and as of March 31, 2022, we have sold 23,453 residential and commercial units, all in the Delhi-NCR area, with a total salable area of 14 .59 million square feet,” said the DRHP.
The company’s sales bookings (net of cancellations) grew at a compound annual growth rate (CAGR) of 142.62%, from Rs 440 crore in 2019-2020 to Rs 2,590 crore in 2021- 22.
“As of March 31, 2022, we have sold 21,478 residential units with an average sale price of Rs 2.81 million per unit. We have strategically focused on central and state government policies supporting affordable housing, particularly the Affordable Housing Policy (AHP), 2013 notified by Department of Land Use, Government of Haryana and Affordable Housing Policy or Deen Dayal Jan Awas Yojana (DDJAY-APHP),” said DRHP .
Each of the policies focuses on affordable and intermediate housing.