Signature Global cuts IPO size by 27% amid high borrowing costs
IPO) to Rs 730 crore ($88 million) from Rs 1,000 crore an updated prospectus showed.
The IPO comprises a fresh issue of shares worth Rs 6.03 billion and Rs 1.27 billion worth of shares being offered by the company's existing shareholder International Finance Corporation, a World Bank Group member, according to the prospectus dated September 12.
«A high-interest rate environment to tackle inflation poses a major challenge to both homebuyers and developers...believe these are among the reasons Signature Global would have reduced offer size,» said Prashanth Tapse, senior vice president of research at Mehta Equities.
The company develops residential, commercial and retail projects mainly in the northern cities, including Gurugram, Karnal and Ghaziabad.
Its consolidated loss after tax narrowed to Rs 638.6 million for the financial year ended March 31 from Rs 1.16 billion a year earlier. Revenue from operations surged more than 72% to Rs 15.54 billion.
The offering comes at a time when benchmark index Nifty 50 scaled record highs, aided by the inflow of funds from foreign and domestic investors.
Signature joins companies like Mankind Pharma and Aeroflex Industries, which recently made stellar debuts on improved domestic appetite for new listings.
ICICI Securities, Axis Capital and Kotak Mahindra Capital were book-running lead managers for Signature Global's IPO.
The bidding date for anchor investors is set for Sept.
18, while retail investors can make an offer from Sept. 20 to September 22, the company said.
