Ceigall India Mobilizes ₹375 Crore from Anchor Investors

1 Aug 2024 , 09:18 AM

Infrastructure company Ceigall India announced on Wednesday that it has raised ₹375 Crore from anchor investors, just one day before the opening of its initial public offering (IPO) for public subscription. The funds were secured through an allocation of 93.56 lakh shares to 29 investors at ₹401 per share, according to a regulatory filing on the Bombay Stock Exchange (BSE) website.

The anchor investors include notable names such as ICICI Prudential Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, Bandhan Mutual Fund, ICICI Prudential Life Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd, and Max Life Insurance Ltd. Additionally, international entities such as Nomura, Integrated Core Strategies (Asia) PTE Ltd, Societe Generale, Morgan Stanley Asia (Singapore) PTE, and Citigroup Global Markets Mauritius participated in the anchor round.

Ceigall India’s IPO, set with a price band of ₹380 to ₹401 per share, will open for subscription on August 1 and close on August 5. The IPO comprises a fresh issue of shares worth ₹684.25 Crore and an Offer-For-Sale (OFS) of up to 1.42 Crore equity shares, valued at ₹568.41 Crore at the upper price band, from the promoters and individual selling shareholders. This brings the total issue size to approximately ₹1,252.66 Crore.

The selling shareholders include promoters and promoter group entities such as Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, Simran Sehgal, and individual shareholder Kanwaldeep Singh Luthra. The proceeds from the fresh issue will be used for purchasing equipment, repaying debt, and general corporate purposes.

Founded in 2002, Ceigall India specializes in infrastructure construction with expertise in elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways. As of June 2024, the company’s order book stood at ₹9,470 Crore, with clients including Indian Railway Construction International Ltd, Military Engineer Services, and Bihar State Road Development Corporation Ltd.

The IPO reserves half of its issue size for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors. Investors can bid for a minimum of 37 equity shares and multiples thereafter.

Ceigall India’s revenue from operations surged 46.5% to ₹3,029.35 Crore in fiscal 2024, up from ₹2,068.17 Crore in fiscal 2023, while profit after tax grew to ₹304.3 Crore from ₹167.27 Crore. The IPO’s book-running lead managers are ICICI Securities Ltd, IIFL Capital Services Ltd, and JM Financial Ltd. The equity shares are set to be listed on both the BSE and NSE.