Gurugram-based real estate developer Signature Global is set to raise ₹875 crore by issuing Secured Listed Redeemable Non-Convertible Debentures (NCDs) on a private placement basis. This strategic move aims to reduce debt and fuel the company’s future growth trajectory, especially as it shifts focus towards mid-income and premium housing segments.
📌 Fundraise Details and Purpose
In a board meeting held this week, Signature Global’s management approved the issuance of NCDs up to ₹875 crore in one or more tranches. The funds will be allocated as follows:
- ₹450 crore for refinancing existing debt
- ₹425 crore to be deployed for future business growth and expansion
🔄 Shareholder Approval Process Underway
The company will now seek approval from shareholders through a postal ballot. The board has already approved:
- Notice of postal ballot
- Enhancement of borrowing limits
- Enhancement of limits for creation of security
- Alteration of Articles of Association (AoA)
Chairman Pradeep Kumar Aggarwal confirmed:
“We have taken the approval of board to raise funds. We will also seek shareholders’ approvals.”
He further stated that Signature Global is targeting the end of August to complete the fundraising process, subject to approvals.
📊 Quick Summary Table
| Aspect | Details |
|---|---|
| Total Fundraise | ₹875 Crore |
| Instrument | Secured Listed Redeemable NCDs (Private Placement) |
| Debt Refinancing Allocation | ₹450 Crore |
| Business Growth Allocation | ₹425 Crore |
| Target Fundraise Completion | By August 2025 (post shareholder approval) |
| FY24 Pre-Sales | ₹10,290 Crore |
| FY25 Targeted Pre-Sales | ₹12,500 Crore |
| Focus Areas | Mid-Income & Premium Housing |
🏘️ Signature Global: Strong Market Position & Strategic Shift
Signature Global began its journey in affordable housing, but rising land prices in Gurugram have prompted the developer to pivot towards mid-income and premium housing segments. This aligns with broader market trends and urban buyer preferences.
In FY 2024–25, Signature Global became the fifth-largest listed real estate company in India by sales bookings, closing the fiscal with property sales worth ₹10,290 crore. For the current year, the company has set an ambitious target of ₹12,500 crore in pre-sales.
🗣️ Key Quote
Pradeep Kumar Aggarwal, Chairman, Signature Global
“We have taken the approval of board to raise funds. We will also seek shareholders’ approvals.”
❓ Frequently Asked Questions (FAQs)
1. What is the purpose of Signature Global’s ₹875 crore fundraising?
The funds will be used for refinancing existing debt (₹450 crore) and fueling future growth (₹425 crore).
2. What financial instrument will be used to raise the funds?
The company will issue Secured Listed Redeemable Non-Convertible Debentures (NCDs) on a private placement basis.
3. When is Signature Global planning to complete the fundraising?
Subject to shareholder approvals, the target is to raise funds by the end of August 2025.
4. What is the company’s sales target for FY 2025?
Signature Global is targeting ₹12,500 crore in pre-sales for the ongoing financial year.
5. Why is the company shifting focus from affordable housing?
Due to the high land cost in Gurugram, the company is now focusing on mid-income and premium housing projects.