Ceigall India IPO to open for subscription on August 1; check GMP, price band and other details

Infrastructure construction company Ceigall India Ltd. will launch its initial public offering (IPO) on Thursday, August 1, 2024. The three-day auction process for the issue will conclude on August 5, while the anchor book will open for one day on July 31.

The price range for the public offering will be announced tomorrow (July 29).

The offering comprises a mix of new issues of equity shares worth ₹684 crore by the company and an offer for sale (OFS) of 1.41 crore ordinary shares by existing shareholders and promoters.

Under the OFS, promoters Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal and Simran Sehgal are the selling shareholders.

No more than 50% of the offering was reserved for qualified institutional buyers (QIBs), 35% for retail investors and the remaining 15% for non-institutional investors.

The company promoted by the Sehgal family has booked up to ₹2 crore shares worth $2 million to its employees who can get shares at a lower price than the final IPO price.

The Sehgal family owns 99.99% of the Delhi-based company’s shares, while Kanwaldeep Singh Luthra is the sole public shareholder with 16,000 shares, or 0.01% of the paid-up equity.

The company will use ₹99.8 crore from the proceeds of the fresh issue for purchase of equipment, ₹413.4 crores for repayment of debts and remaining funds for general corporate purposes. It had an outstanding loan of ₹1,883.4 crores.

Established in 2002, Ceigall India is an infrastructure construction company with expertise in specialized structural projects including elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways and runways.

The company has 18 ongoing projects, including 13 EPC projects and five HAM projects. These include elevated corridors, bridges, viaducts, railway overpasses, tunnels, expressways, runways, metro projects and multi-lane highways.

Ceigall India has recorded significant growth over the past few financial years with FY24 profit increasing by 83% to ₹306 crores over the previous year. The company’s revenue increased by 46.5% to ₹3,029 crores during the same period.

EBITDA or earnings before interest, taxes, depreciation and amortization for the financial year 2024 increases by 75.1% to reach ₹517.7 crore with a margin expansion of 280 basis points to 17.1%, over FY23.

ICICI Securities, IIFL Securities and ICICI Securities are the merchant bankers appointed to manage the IPO, while Link Intime India is the registrar.

Ceigall India will finalise the basis of allotment of IPO shares by August 6 and credit the ordinary shares in the dematerialised accounts of eligible investors by August 7.

The shares will be listed on both the BSE and NSE on August 8, 2024.