BENGALURU, Sept 13 (Reuters) – Indian real estate firm Signature Global has reduced its total initial public offering (IPO) offering to 7.3 billion rupees ($88 million) from 10 billion rupees, an updated prospectus showed.
The IPO includes a fresh issue of shares worth Rs 6.03 billion and shares worth Rs 1.27 billion offered by the company’s existing shareholder International Finance Corporation, a member of the World Bank Group, according to the prospectus dated September 12 become.
“A high interest rate environment to combat inflation poses a major challenge for both home buyers and developers. I believe this is one of the reasons why Signature Global would have reduced the supply size,” said Prashanth Tapse, senior vice president of research at Mehta Equities.
The company develops residential, commercial and retail projects primarily in northern cities including Gurugram, Karnal and Ghaziabad.
Consolidated loss after tax narrowed to Rs 638.6 million for the fiscal ended March 31 compared to Rs 1.16 billion a year ago. Operating revenue rose more than 72% to Rs 15.54 billion.
The offering comes at a time when the benchmark Nifty 50 (.NSEI) index hit record highs, supported by fund inflows from foreign and domestic investors.
Signature joins the likes of Mankind Pharma (MNKI.NS) and Aeroflex Industries (AERO.NS), which recently enjoyed stellar debuts due to increased domestic demand for new listings.
ICICI Securities, Axis Capital and Kotak Mahindra Capital acted as bookrunners for Signature Global’s IPO.
The offer date for anchor investors is set for September 18, while retail investors can submit an offer from September 20 to 22, the company said.
($1 = 82.9311 Indian Rupees)
Reporting by Ashish Chandra in Bengaluru; Editing by Shweta Agarwal
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