Signoria Creation IPO: Issue oversubscribed on second day with retail and NII support; Check the latest GMP, reviews and more

Signoria Creation's IPO opened for subscription on Tuesday, March 12 and closed on Thursday, March 14. The price range was set in the range of ₹61 to ₹65 each in face value of ₹10 each. The lot size of Signoria Creation's IPO consists of 2,000 shares. Investors can bid for at least 2,000 shares and multiples thereof.

It has reserved not more than 50% of the shares of the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional institutional investors (NII) and not less than 35% of the offer is reserved for qualified institutional buyers and retail investors . 40,000 ordinary shares are reserved for the employee share. 72,000 shares have been reserved for the market maker reservation category.

The Red Herring Prospectus (RHP) states that the company manufactures and sells women's clothing including dresses, dupattas, kurtis, pants, tops and co-ord sets. The brand is known for its classic kurtis that come in different colors, patterns and sizes. The brand offers modern, fashionable and comfortable clothing. In the first quarter ended June 30, 2023, the company expanded its product range to include the Co-ord Set for women.

Also Read: Signoria Creation IPO: Price Range, Issue Size, GMP, Important Details You Should Know

“Exciting news! Mint is now on WhatsApp channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!

According to RHP, the company's listed competitor is Nandani Creations Ltd (with a P/E ratio of 585.90).

For the financial year ended March 31, 2022 and March 31, 2023, Signoria Creation Limited's revenue increased by 62.13% and profit after tax (PAT) increased by 242.14%.

Signoria Creation IPO Subscription Status

Signoria Creation's IPO subscription status is 85.37x on the second day so far. According to chittorgarh.com, the issue received positive response from retail investors whose subset was subscribed 138.37 times and non-institutional buyers whose subset was subscribed 60.14 times. Qualified institutional buyers subscribed 32% of the issue.

According to chittorgarh.com, the company has received offers for 8,84,44,000 shares against 10,36,000 shares on offer at 12:34 IST.

Signoria Creation's IPO subscription status is 50.12x on the second day.

Also Read: IPOs this week: 8 new issues and 9 new listings to keep the primary market busy

Signoria Creation IPO details

IPO of Signoria Creation, worth ₹9.28 crore, comprising a fresh issue of 14,28,000 equity shares of face value ₹10. This is a completely new problem and there is no offer component.

The Company intends to use the net proceeds of the new offering to fund the following: general corporate objectives and the Company's working capital needs.

While Bigshare Services Pvt Ltd is acting as registrar, Holani Consultants Private Limited is the book-running lead manager of Signoria Creation's IPO. Holani Consultants is the market maker for Signoria Creation's IPO.

Tentatively, the allotment of shares under Signoria Creation's IPO will be completed on Friday, March 15 and the company will issue refunds on Monday, March 18 while shares will be deposited on the demat on the same day after refund -Account of the allottees will be credited. Signoria Creation share price is expected to list on the BSE and NSE on Tuesday, March 19.

Also Read: Popular Vehicles IPO starts today: GMP, subscription status, review, more details. Apply or not?

Signoria Creation IPO GMP today

The gray market premium for Signoria Creation's IPO is +70. This suggests that Signoria Creation's share price was trading at a premium of ₹70 on the gray market, according to investorgain.com.

Taking into account the upper end of the IPO price range and the current gray market premium, the estimated listing price of Signoria Creation's shares has been included ₹135 per piece, which is 107.69% higher than the IPO price of ₹65.

Based on the gray market activity of the last 10 sessions, IPO GMP is trending upwards today and expects a strong listing. The lowest GMP is ₹0, while the highest is GMP ₹120, according to analysts at investorgain.com.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

Signoria Creation IPO Review

“The company is an emerging women's clothing brand with traditional designs and outfits. The company has posted revenue and profit growth for FY21-23. However, based on the performance in the first half to FY24, the issue appears to be historically aggressively priced.” According to management, the company generates almost two-thirds of its revenue with corresponding profits in the second half of the year due to seasonality. Therefore, well-informed investors can invest funds for medium to long term returns,” advises Dilip Davda, contributing editor at Chittorgarh.

Also Read: Koura Fine Diamond Jewelry IPO Releases Today; Check GMP, allotment status and other important details of SME IPO

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms and not of Mint. We recommend investors consult certified experts before making an investment decision.

Discover a world of benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it's all here, just a click away! Log in now!

Topics that might interest you