Ceigall India listing today: Shares debut with up to 4% premium on BSE, NSE

Ahead of its listing, the grey market premium (GMP) for Ceigall India IPO was quoted around Rs 17-18, suggesting moderate listing gains

Ceigall India IPO listing today: Shares of infrastructure construction company, Ceigall India, made a decent debut on the bourses amidst weak market cues. The company's shares listed at Rs 413 on the BSE, a premium of 3 per cent, while on the NSE they listed at Rs 419, 4.5 per cent higher than the issue price.

With listing, Ceigall India shares yielded a return of Rs 12-18 or 3-4.5 per cent per share to its investors, as the IPO was allotted at Rs 401, the upper end of the issue price.  

While the IPO received a respectable subscription of 14 times, the actual listing performance fell short of initial expectations, likely influenced by the prevailing market conditions, said Shivani Nyati, Head of Wealth at Swastika Investmart. Nyati believes that the company's strong focus on specialised infrastructure projects and efficient execution model remain its key strengths. However, the moderate listing highlights the challenges posed by significant contingent liabilities, reliance on government contracts, and intense competition, she added.

 

Ceigall India's long-term prospects, despite the muted listing, hinge on its ability to effectively manage these challenges and capitalise on its core competencies, Nyati believes. She suggested that investors hold their positions while keeping a stop-loss of Rs 378.

Before its listing, the grey market premium (GMP) for Ceigall India IPO was quoted around Rs 17-18, suggesting moderate listing gains. 

The IPO was available in a price band of Rs 380-401 per share with a lot size of 37 shares. It received decent participation, being subscribed 14.01 times by the end of the subscription period on August 5, 2024.

The public issue received bids 3.82 times from retail investors, 14.83 times from non-institutional investors (NIIs), and 31.26 times from qualified institutional buyers (QIBs).

Ceigall India’s IPO comprised a fresh issue of 17,063,640 shares aggregating up to Rs 684.25 crore and an offer for sale of 14,174,840 shares worth nearly Rs 568.41 crore. The company raised Rs 375.20 crore from anchor investors on July 31, 2024.

The proceeds from the IPO will be used for the purchase of equipment, repayment or prepayment of certain borrowings by the company and its subsidiary, Ceigall Infra Projects.

About Ceigall India

Founded in 2002, Ceigall India Limited specializes in infrastructure construction, including elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways. By July 2024, the company had completed over 34 road and highway projects. These projects include 16 EPC, one HAM project, five O&M projects, and 12 Item Rate Projects. The company's order book as of June 30, 2024, and for the fiscal years 2024, 2023, and 2022 were Rs 9470.84 crore, Rs 9225.77 crore, Rs 10809.04 crore, and Rs 6346.13 crore, respectively.