Affordable housing developer Signature Global India Ltd, backed by KKR & Co and HDFC Capital, has filed a draft filing for a Rs 1,000 crore initial public offering with the Securities and Exchange Board of India.

The IPO consists of an issue of new shares of Rs 750 crore and an offer to sell (OFS) of up to Rs 250 crore from shareholders and promoters.

OFS includes up to Rs 125 crore of shares sold by Sarvpriya Securities Pvt Ltd and International Finance Corporation.

Proceeds from the issue worth Rs 330 crore will be used to repay the company’s debt. As of May, Signature Global’s total debt stood at Rs 537.96 crore.

The company will also use Rs 140 crore to repay the debts of Signatureglobal Homes, Signature Infrabuild, Signatureglobal Developers and Sternal Buildcon.

Investors in Signature Global include the World Bank’s International Finance Corporation (IFC), KKR and HDFC Capital. The company is driven by Pradeep Aggarwal, Ravi Aggarwal, Lalit Aggarwal and Devender Aggarwal.
ICICI Securities, Axis Capital and Kotak Mahindra Capital are the lead managers on the issue.

Gurgaon-based property developer Signature Global focuses on the affordable and mid-range housing market with a 19% market share.

As of March 2022, 23,453 residential and commercial units have been sold, all located in the Delhi-NCR area, with a total saleable area of 14.59 million square ft. There are 27 projects with a commercial area of 16.10 million square feet.

In fiscal 2022, its operating income stood at Rs 901.30 crore compared to Rs 82.06 a year ago. Net loss for the year under review was Rs 115.50 crore compared to Rs 86.28 crore in the previous year.