Ceigall India to open Rs 1,253-crore IPO at Rs 380-401 per share price band

Ceigall India IPO details: Ceigall India's grey market premium (GMP) in the unlisted shares' market is Rs 140 as of July 29, 2024

Ceigall India IPO price band announced: Ceigall India, an infrastructure construction company, has announced the price band of its initial public offering (IPO). Ceigall India IPO, which aims to garner Rs 1,252.6 crore will be available with a price band of Rs 380 to Rs 401 per share. Ceigall India IPO will open for subscription on Thursday, August 1, 2024, and close on Monday, August 5 , 2024.

According to the company's Red Herring Prospectus (RHP), Ceigall India is one of the fastest growing engineering, procurement and construction (EPC) companies in terms of three-year revenue CAGR as of FY24, among the companies with a turnover of over Rs 1,000 crore. The company also has one of the highest year-on-year revenue growths of approximately 43.10 per cent in the previous fiscal year among its peers.

 

About Ceigall India IPO:

Ceigall India IPO is a book built issue which consists of a fresh issue of 17.1 million shares aggregating to Rs 684.25 crore and an offer for sale of 14.2 million shares aggregating to Rs 568.41 crore.

At the lower end of the price band of Rs 380, Ceigall India would be able to fetch Rs 1,222.89 crore (Rs 684.25 crore of fresh issue + Rs 538.64 crore of OFS). Meanwhile, at the upper end of the price band of Rs 401, the company would be able to fetch Rs 1,252.66 crore (Rs 684.25 crore of fresh issue + Rs 568.41 crore of OFS).

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Ceigall India IPO dates:

The three-day issue of Ceigall India IPO will open for subscription on August 1, 2024 and close on August 5, 2024. The allotment for the Ceigall India IPO is expected around Tuesday, August 6, 2024.

As this is a mainboard IPO, Ceigall India IPO will list on both the exchanges -- BSE, and NSE. Its listing is expected around Thursday, August 8, 2024.

Ceigall India IPO GMP:

Ceigall India's grey market premium (GMP) in the unlisted shares' market is Rs 140 as of July 29, 2024. This implies a 35 per cent listing gain over the upper end of the price band of Rs 401 per share, as per IPOwatch.com.

Ceigall India IPO lot size

Investors can bid for a minimum of 37 equity shares and in multiples thereafter.

From the overall IPO size, not more than 50 per cent of the net offer shall be available for allocation to Qualified Institutional Buyers (QIBs), not less than 15 per cent of the net offer shall be available for allocation to Non-Institutional Investors (NIIs), and not less than 35 per cent of the net offer shall be available for allocation to Retail Individual Investors.

Ceigall India IPO Valuation:

According to reports, Ceigall India IPO shares will likely command a price-to-earnings (P/E) multiple of 22.91x post the offering as against a P/E of 20.67x pre-offer.

That apart, its post IPO earnings per share (EPS) could stand at Rs 17.5 per share vs Rs 19.4 per share pre-IPO.

Remember, the Pre-IPO EPS is calculated based on the pre-issue shareholding provided in the RHP (at the time of filing) and the latest earnings (mentioned in RHP). Similarly, the Post-Issue EPS is calculated based on the expected Post-issue shareholding and annualised earnings at the end of March, 2024 (available in RHP).

Ceigall India Financials:

As per the company's RHP, Ceigall India's revenue from operations jumped 46.48 per cent from Rs 2,068.17 crore at the end of FY23 to Rs 3,029.35 crore at the end of FY24. This, Ceigall India said, was on the back of an increase in revenue from construction contracts, and revenue from sale of goods and materials, along with finance income on financial assets carried on amortised cost.

That apart, Ceigall India's net profit surged from Rs 167.27 crore in FY23 to Rs 304.31 crore in FY24.

Ceigall India IPO Objective:

Ceigall India aims to use the proceeds from the fresh issue, to the extent of Rs 99.79 crore for purchase of equipment; Rs 413.4 crore for repayment/ prepayment, in full or in part, of certain borrowings availed by the company and its subsidiary, CIPPL; and other general corporate purposes.

About Ceigall India

Ceigall India is a Ludhiana-based construction company. Established in 2002, Ceigall India's principal business operations are broadly divided into EPC projects and hybrid annuity model (HAM) projects. Their projects are spread across over 10 states in India. As on June 30, 2024, Ceigall India's Order Book stood at Rs 9,470.84 crore.

Ceigall India has completed over 34 projects, including 16 EPC, one HAM, five O&M, and 12 Item Rate Projects, in the roads and highways sector. Besides, 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, it said in its statement.