BackSignature Global share price gains over 2% after decent listing; Should you buy, sell or hold?
Signature Global share listing was in line with analysts’ expectations, given the good response that its initial public offering (IPO) received.
PremiumSignature Global shares extended gains after making a decent debut in the Indian stock market on Wednesday.
Signature Global was listed at ₹445.00 apiece on the BSE, a premium of 15.58% to the issue price of ₹385 per share. On NSE, Signature Global listing price was ₹444 per share, a 15.32% premium.
After listing, Signature Global share price traded higher and made a high of ₹453.80 apiece on the BSE, which was nearly 2% higher than the listing price and nearly 18% higher than the issue price.
Signature Global share listing was in line with analysts’ expectations, given the good response that its initial public offering (IPO) received.
Most analysts recommended to book profits in the stock after listing.
“Signature Global is a leading real estate developer in Delhi-NCR, but it has a history of losses and faces concentration risk and stiff competition from other developers. After this listing, investors should consider booking profit," said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
However, for investors who want to hold Signatureglobal (India) Ltd shares, Nyati advises them to maintain a stop loss at ₹400 level.
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Ashta Jain, Senior Research Analyst at Hem Securities also suggests to book partial profit in Signature Global after today’s listing and hold partial allotment for long term as the company being largest affordable and mid segment real estate developer in Delhi NCR is well-established brand, strong distribution network and digital marketing capabilities translating into faster sales.
“Company is fast growing with ability to scale up rapidly & ability to provide aspirational lifestyle and amenities at affordable pricing and at strategic locations . Company has positive operating cash flows with low levels of debt & has strong focus on sustainable development along with experienced promoters and professional senior management team with marquee investors," said Jain.
The ₹730-crore Signature Global IPO was open from September 20 to September 22. It received 11.88 times total subscription, as per data available on stock exchanges. The IPO price band was ₹366 to ₹385 per share.
Signature Global Ltd is one of the largest real estate developer in the Delhi NCR region in the affordable and lower mid segment housing in terms of units supplied.
As of March 31, 2023, Signature Global sold 27,965 residential and commercial units, all within the Delhi NCR region, with an aggregate Saleable Area of 18.90 million square feet.
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Its net sales have grown at a compounded annual growth rate (CAGR) of 42.46%, from ₹1,690.27 crore in Fiscal 2021 to ₹3,430.58 crore in Fiscal 2023. As of March 31, 2023, the company has sold 25,089 residential units with an average selling price of ₹36 lakh per unit.
In FY23, the company reported a total revenue of ₹1,585.88 crore and a net loss of ₹63.72 crore.
At 11:50 am, Signature Global share price was trading at ₹450.95 apiece on the BSE, higher by 1.34% than the listing price and by 17.13% than the issue price. The stock commanded a market capitalisation of over ₹6,336 crore.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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