Ceigall India IPO closes today

5 Aug 2024 , 12:41 PM

Ceigall India Ltd.’s initial public offering (IPO) has been closing for the subscription today. As of the third day of subscription, the IPO has been oversubscribed by 2.73 times, according to BSE data. Retail investors subscribed 2.67 times, non-institutional investors 6.25 times, and the employee component saw an impressive 9.27 times subscription.

IPO Details

• Price Range: ₹380 to ₹401 per share
• Subscription Period: August 1 to August 5, 2024
• Anchor Investors: Secured ₹375 Crore before public subscription

Company Background

Established in 2002, Ceigall India Ltd. specializes in constructing infrastructure projects such as:

• Flyovers
• Elevated roadways
• Bridges
• Rail overpasses
• Tunnels
• Highways
• Expressways
• Runways

As of June 2024, the company’s order book was valued at ₹9,470 Crore. Notable clients include Military Engineer Services, Indian Railway Construction International Ltd., and Bihar State Road Development Corporation Ltd.

Financial Performance

For the fiscal year 2024, Ceigall India reported significant growth:

• Operating Revenue: Increased by 46.5% to ₹3,029.35 Crore from ₹2,068.17 Crore in the previous year
• Profit After Taxes: Rose to ₹304.3 Crore from ₹167.27 Crore

IPO Structure

The IPO comprises two components:

• Offer for Sale (OFS): 1,41,74,840 equity shares by existing shareholders, including promoters such as Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, and Simran Sehgal.
• Fresh Issue: Equity shares amounting to ₹684.3 Crore

Utilization of IPO Proceeds

The funds raised from the IPO will be allocated for:

• General corporate purposes
• Equipment purchases
• Repayment of certain loans
• Funding Ceigall Infra Projects Private Limited, a subsidiary of the company

Key Managers

• Registrar: Link Intime India Private Ltd
• Book-Running Lead Managers: ICICI Securities Ltd, IIFL Capital Services Ltd, and JM Financial Ltd