Ceigall India IPO opens on August 1; check price band, lot size and other details

The initial public offering (IPO) of Ceigall India will open for bidding on Thursday, August 1. The company is offering its shares in the range of Rs 380-401 apiece. Interest investors can subscribe to the IPO until Monday, August 05, applying for a minimum of 37 equity shares and its multiples thereafter.

Incorporated in 2002, Ceigall India is an infrastructure construction company with expertise in specialized structural projects, including elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways. The company completed over 34 road and highway projects as of July 2024.

The IPO of Ceigall India includes a fresh share sale of Rs 684.25 crore and offer-for-sale (OFS) of up to 1,41,74,840 equity shares by its promoters and existing shareholders, amounting to Rs 568.41 crore at the upper end of the price band. The company is looking to raise a total of Rs 1,252.66 crore via its initial stake sale.

The net proceeds from the fresh issue shall be utilized towards funding the purchase of equipment; repayment/ prepayment, in full or in part, of certain borrowings availed by the Company and its Ceigall Infra Projects. Proceeds from the OFS shall go to the selling shareholders of the company. Anchor book for the issue opens on Wednesday, July 31.

Ceigall India has 18 ongoing projects, including 13 EPC projects and five HAM projects. These involve elevated corridors, bridges, flyovers, rail over-bridges, tunnels, expressways, runways, metro projects, and multi-lane highways. The company has 1,488.17 lane kilometers of ongoing projects and has completed 2,158.72 lane kilometers of O&M projects, as of March 31, 2024.

Ceigall specializes in the construction, development, and execution of major multi-lane highway projects with specialized structures in various states of India, including Punjab, Haryana, Rajasthan, Uttar Pradesh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Delhi, Maharashtra, and Bihar.

The company's order book stood at Rs 9,470.84 crore as of June 30, 2024. It has recently completed several key projects, including widening a road in Punjab, constructing the Kartarpur-Sahib Project, and finishing an elevated corridor portion for the Delhi-Saharanpur Project.

For the financial year ended on March 31, 2024, Ceigall India reported a net profit of Rs 304.91 crore with a revenue of Rs 3,066.19 crore. The company net profit stood at Rs 167.70 crore with a revenue of Rs 2,087.04 crore for the financial year 2022-23.

The company has reserved shares worth Rs 2 crore for its eligible employees, who will get a discount of Rs 38 per share during the bidding. It has reserved 50 per cent of the net offer for the qualified institutional bidders, while retail investors will have 35 per cent of the net offering and remaining 15 per cent of the net offer will be allocated to non-institutional investors.

ICICI Securities, IIFL Securities and JM Financial are the book running lead managers of the Ceigall India IPO, while Link Intime India is the registrar for the issue. Shares of the company are set to debut on both BSE and NSE tentatively on August 08, Thursday.