Infra company Ceigall India's IPO subscribed 61% on Day 1 of offer

The initial public offer of infrastructure company Ceigall India received 61 per cent subscription on the first day of bidding on Thursday.

The Rs 1,252.66-crore initial share sale received bids for 1,35,07,627 shares against 2,23,13,663 shares on offer, as per the NSE data.

The category for non-institutional investors received 90 per cent subscription, while the retail individual investors part got subscribed 80 per cent.

Ceigall India on Wednesday said it has mobilised Rs 375 crore from anchor investors.

The initial public offering (IPO) has a price band of Rs 380 to Rs 401 per share. The public issue will conclude on August 5.

 

The Ludhiana-based company's IPO is a combination of a fresh issue of Rs 684.25 crore and an Offer-For-Sale (OFS) of up to 1.42 crore equity shares worth Rs 568.41 crore, at the upper end of the price band, by the promoters, and an individual shareholder. This takes the total issue size to Rs 1,252.66 crore.

Promoters and promoter group entities -- Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, Simran Sehgal -- and individual shareholder Kanwaldeep Singh Luthra are divesting their stakes in the public issue.

Proceeds from the fresh issue will be used for the purchase of equipment, payment of debt, and a portion will be used for general corporate purposes.

Founded in 2002, Ceigall India is an infrastructure construction company with experience in undertaking specialised structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways.

As of June 2024, the company's order book stood at Rs 9,470 crore. Its clientele includes public sector entities like Indian Railway Construction International Ltd, Military Engineer Services and Bihar State Road Development Corporation Ltd.

The company's revenue from operations surged 46.5 per cent to Rs 3,029.35 crore in fiscal 2024 from Rs 2,068.17 crore in fiscal 2023 and profit after tax grew to Rs 304.3 crore from Rs 167.27 crore.

ICICI Securities Ltd, IIFL Securities Ltd and JM Financial Ltd are the book-running lead managers for the IPO. The equity shares are proposed to be listed on the BSE and NSE.