Infrastructure Player Ceigall India Files for IPO to Raise ₹617 Crore

5 Mar 2024 , 07:08 AM

Infrastructure company Ceigall India has initiated the process to raise funds through an initial public offering (IPO), filing preliminary papers with the capital markets regulator Sebi.

According to the draft red herring prospectus filed on Sunday, the Ludhiana-based company’s IPO comprises a fresh issue of ₹617.69 Crore and an offer-for-sale (OFS) of up to 1.43 Crore equity shares by the promoters and an individual selling shareholder.

The promoters and promoter group entities, including Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, and Simran Sehgal, along with individual shareholder Kanwaldeep Singh Luthra, are divesting their stakes in the proposed public issue.

Furthermore, the offer includes a reservation for subscription by eligible employees.

The company may explore raising ₹123.50 Crore in a pre-IPO placement round, potentially leading to a reduction in the fresh issue size.

The proceeds from the fresh issue, amounting to ₹118.78 Crore, are earmarked for the purchase of equipment, with an additional ₹344.50 Crore allocated for debt repayment, alongside funding for general corporate purposes.

Established in 2002, Ceigall India specializes in infrastructure construction, focusing on intricate structural projects like elevated roads, flyovers, bridges, tunnels, highways, and runways. As of January 2024, the company’s order book reached ₹9,206.42 Crore, with NHAI accounting for 82% of the total. Its clientele includes esteemed public sector entities such as Indian Railway Construction International, Military Engineer Services, and Bihar State Road Development Corporation Ltd.

The fiscal year 2022-23 witnessed significant growth for the company, with revenue from operations surging to ₹2,068.17 Crore from ₹1,133.79 Crore in the previous fiscal, accompanied by a rise in profit after tax to ₹167.27 Crore from ₹125.86 Crore.

ICICI Securities, IIFL Capital Services, and JM Financial have been appointed as the book-running lead managers for the IPO, with the equity shares intended for listing on both the BSE and NSE.