Signoria Creation’s initial public offering (IPO) is scheduled to open for subscription from March 12 to March 14. The IPO price band has been fixed at ₹61 to ₹65 per share of face value ₹10 each, with a lot size of 2,000 shares. Investors can bid for a minimum of 2,000 shares and in multiples thereof. The floor price stands at 6.10 times the face value, while the cap price is 6.50 times the face value.
According to the Red Herring Prospectus (RHP), Signoria Creation specializes in manufacturing and selling women’s clothing such as dresses, dupattas, kurtis, trousers, tops, and co-ord sets. The brand is renowned for its classic Kurtis, offering a wide range of colors, patterns, and sizes. Notably, the company introduced Co-ord Sets for women during the first quarter ending June 30, 2023.
Comparatively, the company’s listed peer, Nandani Creations Ltd, has a Price/Earnings (P/E) ratio of 585.90. Signoria Creation Limited witnessed a 62.13% revenue growth and a 242.14% increase in profit after tax (PAT) during the fiscal years ending March 31, 2022, and March 31, 2023, respectively.
Signoria Creation IPO, valued at ₹9.28 crore, consists of a fresh issue of 14,28,000 equity shares, with no offer-for-sale component. The net proceeds from the fresh offering will be utilized for general corporate objectives and working capital needs.
Holani Consultants Private Limited is the book running lead manager, and Bigshare Services Pvt Ltd is the registrar for the IPO. The IPO has allocated not more than 50% of shares for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and a minimum of 35% for retail investors. Additionally, 40,000 equity shares have been reserved for employees, and 72,000 equity shares for market makers.
The basis of allotment of shares is expected to be finalized on March 15, with refunds initiated on March 18. Shares are likely to be credited to the demat accounts of allottees on the same day as the refund. Signoria Creation’s shares are set to be listed on the BSE and NSE on March 19.
The grey market premium (GMP) for Signoria Creation IPO stands at +50, indicating a premium of ₹50 in the grey market, as reported by investorgain.com. Considering the upper end of the IPO price band and the current GMP, the estimated listing price is projected at ₹115 per share, reflecting a 76.92% increase over the IPO price. The ‘grey market premium’ signifies investors’ willingness to pay a premium over the issue price.
