Signatureglobal (India) Limited has officially received board approval for its strategic joint venture agreement with RMZ Group, marking a significant expansion into commercial real estate development. The board meeting held on February 14, 2026, formally approved the transaction under Regulation 30 of SEBI listing requirements, with completion expected by March 23, 2026.

Board Approval and Transaction Structure

The board of directors approved the execution of the Securities Subscription and Purchase Agreement (SSPA) among the company, Gurugram Commercity Limited (GCL), and Millennia Realtors Private Limited of the RMZ Group. The meeting commenced at 10:49 hours and concluded at 11:16 hours on February 14, 2026.

Joint Venture Structure and Financial Details

Under the approved agreement, RMZ Group will acquire 50% shareholding in GCL through a combination of primary subscription of equity shares and purchase of existing shares held by the company. GCL, currently a wholly owned subsidiary of Signatureglobal, will cease to be a subsidiary upon completion of the transaction.

Project Specifications and Development Plan

The joint venture will develop a mixed-use project on Southern Peripheral Road in Gurugram, utilizing approximately 3.94 million square feet of FSI. The development will integrate office buildings, hotels, and retail space within a design district concept, catering to growing demand for high-end commercial spaces.

Governance and Management Structure

The shareholders' agreement establishes equal representation with both Signatureglobal and RMZ entitled to appoint two nominee directors each on GCL's board. The agreement includes customary reserved matter rights covering business changes, mergers, borrowings, and transfer restrictions.

Strategic Partnership and Market Position

The collaboration leverages RMZ's expertise in conceptualization, leasing, and management of commercial assets with Signatureglobal's execution capabilities and regional market presence. This partnership enables the company to expand into commercial real estate while maintaining its strong position with 13% market share in NCR and 20% in Gurugram within the ₹20-50 million price range.

Signatureglobal (India) Limited announced its unaudited consolidated financial results for the quarter and nine months ended December 31, 2025, revealing significant operational challenges amid strategic fundraising initiatives.

Financial Performance Overview

The company reported a consolidated net loss of ₹453.38 million for Q3FY26, marking a sharp reversal from the ₹291.35 million profit recorded in the corresponding quarter of the previous year. This represents a substantial decline in profitability, with earnings per share turning negative at ₹(3.22) compared to ₹2.07 in Q3FY25.

Total income from operations declined dramatically by 63.7% to ₹3,127.63 million from ₹8,621.47 million in the same quarter last year. The nine-month performance also showed deterioration, with consolidated net loss reaching ₹577.64 million compared to a profit of ₹400.83 million in the corresponding period of FY25.

Major Fundraising Initiative

During the quarter and nine months ended December 31, 2025, Signatureglobal issued 87,500 rated, listed, secured, redeemable Non-Convertible Debentures (NCDs) with a face value of ₹100,000 each, aggregating ₹8,750.00 million on a private placement basis to International Finance Corporation (IFC). The NCDs carry an interest rate of 11% per annum, payable quarterly, and were listed on the Bombay Stock Exchange on October 17, 2025.

The company has fully utilized the proceeds in accordance with Clause 14.5 of the Debenture Trust Deed dated September 30, 2025. The NCDs are redeemable in twelve equal quarterly installments, starting from April 15, 2026, to January 15, 2029.

Security and Collateral Structure

The NCDs are secured by way of first ranking exclusive charge over specified assets of Signatureglobal Business Park Limited (SBPL), the subsidiary company. The security includes approximately 120.404 acres of project land located at Sector 36, Sohna, Haryana, along with all present and future constructions, receivables, development rights, and project escrow accounts.

As per the Debenture Trust Deed terms, the Group maintains a Minimum Security Cover equal to 1.50 times the outstanding principal amount and interest due on the debentures. The market/fair value of SBPL's project land, as per the valuation report issued by a third-party expert registered valuer, stands at ₹36,764.00 million as of December 31, 2025.

Capital Structure and Leverage

The company's financial leverage increased significantly during the quarter. Outstanding debt rose to ₹31,262.21 million from ₹24,499.32 million in the previous year, resulting in a debt-equity ratio of 4.53 compared to 3.66 in Q3FY25. The debt service coverage ratio remained negative at (0.05), indicating challenges in servicing debt obligations from current operations.

Standalone Performance

On a standalone basis, the company reported total income from operations of ₹3,672.08 million for Q3FY26, compared to ₹7,002.71 million in Q3FY25. Standalone net loss after tax was ₹134.82 million versus a profit of ₹277.73 million in the corresponding quarter last year. The standalone debt-equity ratio stood at 3.41 compared to 1.99 in the previous year.

Asset Disposal and Regulatory Updates

The company completed the sale of an investment property in Delhi NCR during the quarter, executing the sale deed on December 30, 2025. This property had been classified as 'asset held for sale' following management's decision in the quarter ended September 30, 2025.

Regarding regulatory changes, the Government of India consolidated 29 existing labour legislations into four Labour Codes, which were notified on November 21, 2025. The company assessed the impact of these changes and determined that the effect is not material on the consolidated financial results.

The Board of Directors approved these results at their meeting held on February 3, 2026, following review by the Audit Committee. The results have been subjected to limited review by the company's statutory auditors.

Source: Financial Express