SignatureGlobal

Largest affordable and mid segment real estate developer in Delhi NCR;

Well-established brand, strong distribution network and digital marketing capabilities translating into faster sales;

Fast growing with ability to scale up rapidly;

Ability to provide aspirational lifestyle and amenities at affordable pricing and at strategic locations;

Standardized product offerings, quick turnaround and end-to-end in-house project execution expertise;

Positive operating cash flows with low levels of debt;

Strong focus on sustainable development; and

Experienced Promoters and professional senior management team with marquee investors.

The company`s business and profitability is significantly dependent on the performance of the real estate market in the Delhi- NCR region, generally, and particularly in Gurugram and Sohna micro-markets in Haryana. Fluctuations in market conditions may affect its ability to sell the company projects at expected prices, which may adversely affect its revenues and earnings.

The COVID-19 pandemic adversely affects the company business, financial condition, results of operations, cash flows, liquidity and performance, and it may reduce the demand for its projects in future.

The withdrawal of certain benefits under the Haryana Affordable Housing Policy, 2013 and the Deen Dayal Jan Awas Yojna, may adversely affect its business, prospects and results of operations.

The company depends significantly on its residential development business, particularly in the affordable housing category, the success of which is dependent on the company ability to anticipate and respond to consumer requirements.

The company has incurred net loss in the past, and its may not be able to achieve or maintain profitability in the future.

There may be an increase in the price of land and/ or shortages of land available for development.

The company may not be able to successfully identify and acquire suitable land or enter into collaboration agreements, which may affect its business and growth prospects.

While acquiring land parcels or other properties or entering into collaboration agreements after conducting due diligence and obtaining independent title reports for the land, the company may not be aware of legal uncertainties and defects, which may have an adverse impact on its ability to develop and market projects on such lands.

Some of the company projects are in the preliminary stages of planning and require approvals and renewals of certain approvals for its projects and the company is required to fulfil certain conditions precedent in respect of some of them, which may require it to reschedule the company Ongoing Projects and Forthcoming Projects.

Significant increases in prices (including for increase in taxes and levies) or shortage of or delay or disruption in supply of, construction materials, contract labour and equipment could adversely affect the company estimated construction cost and timelines resulting in cost overruns.

The company has not been able to obtain certain records of the name change of one of its directors and have relied on an undertaking furnished by him. Further, two of the company directors are unable to trace their secondary education degrees, and its have relied on undertakings furnished by them.

The industry in which the company operate is competitive and increasing consolidation in a market dominated by branded developers may adversely affect its results.

An inability to complete the company Ongoing Projects and Forthcoming Projects by their respective expected completion dates or at all could have a material adverse effect on its business, results of operations and financial condition.

Certain of the company is Completed Projects have not received a completion certificate from relevant authorities, as applicable.

Work stoppages, shortage of labour and other labour problems could adversely affect the company business. Further, its operations are dependent on contract labour and an inability to access adequate contract labour at reasonable costs at the company project sites may adversely affect its business prospects and results of operations.

The company has entered into collaboration agreements with third parties to acquire land which may entail certain risks.

There are certain outstanding litigation proceedings involving the Company, Subsidiaries, Directors, Promoters and Group Companies, an adverse outcome in which, may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.

Non-compliance with, and changes in, safety, health and environmental laws could adversely affect the company projects.

The company Investor Agreements contain certain conditions which may adversely affect its business, financial condition and results of operations.

The company financing agreements impose certain restrictions on its operations, and the company failure to comply with operational and financial covenants may adversely affect its reputation, business and financial condition.

The company own and have applied for registrations of certain intellectual property rights and any failure to enforce its rights could have an adverse effect on the company business prospects.

It is difficult to compare the company performance between periods, as its revenues and expenses fluctuate significantly from period to period.

Sales of the company projects may be adversely affected by the inability of its prospective customers to obtain financing for purchase of property.

The company`s business is capital intensive and requires significant expenditure for development, and is therefore heavily dependent on the availability of real estate financing, which may not be available on terms acceptable to it in a timely manner or at all.

Some or all of the company outstanding receivables against the bookings may not be received in the future which may adversely affect its business prospects, financial conditions and results of operations.

The company financial condition and results of operations could be adversely affected by the incidence and change in the rate of property taxes and stamp duties.

The company has unsold units among its Ongoing Projects.

The company`s business and financial condition could be adversely affected if the company customers decide not to avail property management services.

The company relies on its information technology systems for its operations and its reliability and functionality is critical to the success of the company business.

The company operations and the work force, customers and/ or third parties on property sites are exposed to various hazards, which could adversely affect its business, financial condition and results of operations.

Fraud or improper conduct may delay the development of a project and adversely affect the company business and results of operations.

The company may experience difficulties in expanding its business into additional geographical markets. Failure to successfully implement the company expansion strategies and its development plans may materially and adversely affect the company business prospects, financial conditions and results of operations.

The company`s success depends in large part upon its qualified personnel, including the company senior management, directors and key management personnel, and the loss of or its inability to attract or retain such persons could adversely affect the company business, results of operations and financial condition.

The company is subject to penalty clauses under the agreements entered into with its customers, for any delay in the completion or defects in construction of the projects.

The company relies on independent construction contractors, whom its do not control, to construct projects and any failure on their part to perform their obligations could adversely affect the company business, results of operations and cash flows.

A portion of the company projects is held through its Subsidiaries and the company pledge of the shareholding to secure financing for such Subsidiaries. In the event of a default in its financing agreements, pledge may be invoked and its shareholding in the company Subsidiaries may be diluted.

An inability to maintain adequate insurance cover in connection with the company projects may adversely affect its operations and profitability.

Certain information contained in this Draft Red Herring Prospectus including that in relation to the company Completed Projects, Ongoing Projects, Forthcoming Projects and the area expressed to be covered by the projects are based on management estimates and may be subject to change.

The company has certain contingent liabilities, which if they materialize, may adversely affect its business, financial condition and results of operations.

Certain unsecured loans have been availed by it which may be recalled by lenders.

The company funding requirements and proposed deployment of the Net Proceeds are based on management estimates and may be subject to change based on various factors, some of which are beyond its control. While the Company will receive proceeds from the Fresh Issue, it will not receive any proceeds from the Offer for Sale.

Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

There is a lack of specificity around one of the proposed objects of the Offer and the company has not specifically earmarked the use of the Net Proceeds under the head of the objects of the Offer.

Certain of the company Promoters, Directors and Key Management Personnel hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their normal remuneration and reimbursement of expenses.

The company Promoters, Directors and Group Companies have interests in certain companies, which are in businesses similar to the company and this may result in potential conflict of interest with it.

The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

The company Registered and Corporate Office are located on leased premises. If the lease for such premises are terminated or not renewed on terms acceptable to the company, it could adversely affect its business, financial condition, results of operations, and cash flows.

The average cost of acquisition of Equity Shares by the Promoters and Selling Shareholders may be less than the Offer Price.

The company has issued Equity Shares during the preceding twelve months at a price which may be below the Offer Price.

The Company`s ability to pay dividends in the future will depend on the Company`s earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the Company`s financing arrangements.

The company will continue to be controlled by its Promoters and certain members of the Promoter Group after the completion of the Offer.

Certain sections of this Draft Red Herring Prospectus contain information from the Anarock Report which the company has commissioned and purchased and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.

The company has in this Draft Red Herring Prospectus included certain non-GAAP financial and operational measures and certain other industry measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the real estate industry. The company relies on certain assumptions and estimates to calculate such measures, therefore such measures may not be comparable with financial, operational or industryrelated statistical information of similar nomenclature computed and presented by other similar companies.