Last Day! Ceigall India IPO closes today; Should you Bid? Check GMP & more

Ceigall India IPO: The initial public offering of Ceigall India has, so far, received a positive response from investors. The public issue has been subscribed 1.26 times by the end of the second day of subscription. The three-day subscription window to apply for Ceigall India IPO, which opened on Thursday, August 1, 2024, closes today.

Available at the price band of Rs 380 - Rs 401 per share and a lot size of 37 shares,  Ceigall India  IPO has been subscribed 1.72 times in the retail category and 1.81 times in the NII category, while the QIB category has received 0.01 times subscription.

 

Should you subscribe to the Ceigall India IPO?

Brokerages, including Reliance Securities, SBI Securities, and Swastika Investmart, have shared broadly positive outlooks on the Ceigall India IPO.

Reliance Securities - Subscribe

Analysts at Reliance Securities have suggested investors to Subscribe to the Ceigall India IPO. "We believe Ceigall India will continue to maximize revenues with multiple projects in hand and increase profit margins and return ratios over the next few years. Hence, we recommend a 'Subscribe' to the issue," said Reliance Securities.

Swastika Investmart - Subscribe for long-term

Ceigall India emerges as a rapidly growing EPC player with a strong track record in executing specialized infrastructure projects, said Shivani Nyati, Head of Wealth at Swastika Investmart. However, significant contingent liabilities, dependence on government contracts, high working capital requirements, and intense competition present key challenges. "The IPO is priced at a fully valued P/E of 20.7x. While the company's growth prospects are promising, the aforementioned risks warrant a cautious approach. Considering these factors, a long-term perspective is essential for investors considering this IPO," said Nyati.

SBI Securities - Subscribe for long-term

SBI Securities, in its report on the Ceigall India IPO, said that given the company's consistently negative operating cash flows, high debt levels, and geographical concentration in the states of Punjab, UP, and J&K (87 percent of FY24 revenues), the business model appears to carry relatively higher risks compared to its listed peers. "Due to this, the issue may be considered a slightly risky bet; therefore, we recommend that investors subscribe to this issue for the long term," said SBI Securities.

Ceigall India IPO key details

The public issue of Ceigall India comes with a fresh issue of 17,063,640 shares worth Rs 684.25 crore and an offer for sale of 14,174,840 shares with a face value of Rs 5 each, aggregating up to Rs 568.41 crore. Investors can bid for a minimum of 37 shares of Ceigall India and in multiples thereof. The minimum amount required by a retail investor to bid for the Ceigall India IPO is Rs 14,837.

Link Intime India is the registrar of the Ceigall India IPO, while ICICI Securities, JM Financial, and IIFL Securities are the book-running lead managers for the public issue.

Ceigall India IPO GMP

The unlisted shares of Ceigall India are commanding a strong premium on the last day of subscription. As per several websites that track grey market activities, the Ceigall India shares are trading at a premium of Rs 50-53 or 12 per cent - 13 per cent from the upper end of the issue price of Rs 401. This indicates nearly 12-13 per cent listing gains for investors.

Ceigall India allotment, listing date

The basis of allotment of shares for the Ceigall India IPO is scheduled for Tuesday, August 6, 2024, while the company's shares are likely to list on the bourses, including NSE and SME, on Thursday, August 8, 2024.