Signature Global, Sai Silks shares to list on Wednesday. Here's what to expect
Signature Global is commanding a GMP of Rs 41 in the unlisted market. Compared with the upper price band of Rs 385, the shares are expected to fetch 10% premium on debut.
However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.
«The company has a loss-making history and faces concentration risk.
It is also facing stiff competition from other real estate developers. The healthy subscription of the IPO means we can expect a decent listing of this IPO,» said Shivani Nyati, Head of Wealth, Swastika Investmart.
The IPO was well received by investors and subscribed 12.5 times at close.
Signature Global is the largest real estate development company in the national capital region of Delhi in affordable and lower mid segment housing in terms of units supplied between 2020 and the three months ended March 31, 2023, with a market share of 19%.
Net proceeds from the IPO will be used to repay debt, in infusion of funds into its subsidiaries, to pursue inorganic growth through land acquisitions and other general corporate purposes.
Meanwhile, Sai Silks' GMP is around Rs 7 as against the offer price of Rs 222, which means the listing premium will likely be a mild 3%.
«The issue was at a P/E valuation of around 27.3x, which was fairly priced.
