Ceigall India Declares Price Band For Its IPO

Ceigall India, an infrastructure construction company fixed the price band of Rs 380 to Rs 401 per equity share for its maiden initial public offer. 

The initial public offering (IPO) will open on 01 August for subscription and close on 05 August. Investors can bid for a minimum of 37 equity shares and in multiples of 37 Equity shares thereafter.

The IPO consists of a fresh issue of up to Rs 6,842.52 million and an offer for sale (OFS) of up to 1,41,74,840 equity shares by promoter selling shareholders and individual selling shareholders.

The proceeds from the fresh issue, to the extent of Rs 997.89 million will be used for purchase of equipment, Rs 4,134 million for repayment/ prepayment, in full or in part, of certain borrowings availed by the company and its subsidiary and General corporate purposes.

Ceigall India’s revenue from operations increased by 46.48 per cent from Rs 20,681.68 million in the Fiscal 2023 to Rs 30,293.52 million in the Fiscal 2024, primarily driven by increase in revenue from construction contracts, and revenue from sale of goods and materials and Finance income on financial assets carried on amortised cost.

The company recorded a significant increase in its profit for the year by Rs 1,672.72 million in the Fiscal 2023 to Rs 3,043.07 million in the Fiscal 2024. The company has grown at a CAGR of 50.13 per cent between Fiscals 2022 to 2024. Over the last two decades, 

ICICI Securities, IIFL Securities, and JM Financial are the book running lead managers and Link Intime India is the registrar to the offer. 

The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The Ludhiana-based company's principal business operations are broadly divided into EPC projects and hybrid annuity model (HAM) projects, spread across over ten states in India. As on June 30, 2024, the company's order book was Rs 94,708.42 million. 

The Company has completed over 34 projects, including 16 EPC, one HAM, five O&M and 12 Item Rate Projects, in the roads and highways sector. Currently, it has 18 ongoing projects, including 13 EPC projects and five HAM projects which includes elevated corridors, bridges, flyovers, rail over-bridges, tunnels, expressway, runway, metro projects and multi-lane highways.