Signature Global Secures ₹875 Crore Through IFC-Backed NCD Issuance

Signature Global (India), a prominent Gurugram-based real estate developer, has successfully raised ₹875 crore through a private placement of non-convertible debentures (NCDs). This marks a significant milestone for the company as its first listed debt transaction on the Bombay Stock Exchange (BSE).

NCD Details

Parameter	Details
Subscriber	International Finance Corporation (IFC)
Amount Raised	₹875.00 crore
Coupon Rate	11.00%
Maturity Date	January 15, 2029
Credit Rating	'A+' with stable outlook (Care Edge Ratings)

Fund Utilization

The proceeds from this debt issuance are earmarked for two primary purposes:

Funding mid-income housing projects aligned with Environmental, Social, and Governance (ESG) standards
Refinancing existing debt

Company Performance and Targets

Signature Global has demonstrated strong performance in the real estate sector:

Metric	Value
Pre-sales (Previous Fiscal)	₹1.03 lakh crore
Pre-sales Target (FY26)	₹1.25 lakh crore

Sustainability Initiatives

The company has shown a commitment to sustainable development:

19 EDGE-certified developments
Scored 84 in its first GRESB assessment

Project Pipeline

Signature Global's current project pipeline showcases its growth plans:

Project Stage	Area (sq ft)
Recently Launched	17.10 million
Under Construction	9.20 million
Planned (Next 2-3 years)	24.50 million

This substantial debt raising through IFC-backed NCDs strengthens Signature Global's financial position and underscores the company's focus on sustainable and ESG-compliant real estate development. The successful placement of these NCDs, coupled with the company's robust project pipeline and strong pre-sales performance, indicates a positive outlook for Signature Global in the mid-income housing segment.

Signature Global (India) Ltd, a prominent player in the Indian real estate sector, has reported mixed results for the second quarter. The company's performance shows a decline in pre-sales but improvements in average sales realisation and stable collections.

Pre-sales and Area Sold

Signature Global experienced a significant downturn in its pre-sales for the quarter:

Metric	Q2 Value	YoY Change	QoQ Change
Pre-sales	₹20.10 billion	-28%	-24%
Area Sold	1.34 million sq. ft.	-44%	N/A

The substantial decrease in both pre-sales value and area sold indicates challenging market conditions for the company during this period.

Collections and Realisation

Despite the decline in pre-sales, Signature Global managed to maintain stable collections and improve its average sales realisation:

Metric	Value	YoY Change
Collections	₹9.40 billion	+2%
Avg. Sales Realisation	₹15,000 per sq. ft.	+20.4%

The improvement in average sales realisation from ₹12,457 per sq. ft. in the previous fiscal year to ₹15,000 per sq. ft. reflects the company's success in enhancing its pricing strategy and product mix.

Financial Position and Expansion

The company reported a slight increase in its net debt:

Metric	Value
Net Debt	₹9.70 billion

This marginal rise in debt is attributed to the acquisition of 33.47 acres in Sohna, which has a development potential of 1.76 million sq. ft. This strategic move suggests that Signature Global is positioning itself for future growth despite the current market challenges.

Management Outlook

Chairman Pradeep Kumar Aggarwal expressed confidence in the company's trajectory, stating that Signature Global is poised to sustain its growth momentum. He affirmed the company's commitment to meeting its annual performance targets across key parameters.

While the decline in pre-sales and area sold presents immediate challenges, the stable collections, improved sales realisation, and strategic land acquisition indicate that Signature Global is taking steps to navigate the current market conditions and prepare for future opportunities in the real estate sector.