Introduction to Ceigall India’s IPO
Ceigall India, a prominent infrastructure construction company, is set to open its Initial Public Offering (IPO) on August 1. The price band for the IPO will be revealed on July 29. This public offering includes a fresh issuance of equity shares valued at Rs 684.3 crore and an offer for sale (OFS) of 1,41,74,840 equity shares by the current shareholders.
IPO Structure and Key Shareholders
The IPO consists of fresh equity shares worth Rs 684.3 crore and an OFS of up to 1,41,74,840 shares by existing shareholders, including promoters such as Ramnik Sehgal, Ramnik Sehgal & Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Paramjit Sehgal, and Simran Sehgal. The company has also reserved shares worth up to Rs 2 crore for its employees, who can get these shares at a discount.
Subscription Dates and Allocation
The IPO will be open for subscription until August 5, with the anchor book opening for a day on July 31, just before the IPO launch. allocation of shares will be as follows: 50% of the net issue (excluding the employees’ portion) is reserved for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors (high-net-worth individuals).
Company Background and Shareholding
Ceigall India, promoted by the Sehgal family, holds a 99.99% shareholding in the Delhi-based company, with Kanwaldeep Singh Luthra being the sole public shareholder, owning 16,000 shares (0.01% of paid-up equity). Over the last two decades, Ceigall India has evolved from a small construction firm to an Engineering, Procurement, and Construction (EPC) player with a robust order book of Rs 9,470.8 crore, primarily from the National Highway Authority of India (NHAI).
Operational Highlights and Financial Performance
Ceigall India has successfully completed over 34 projects, including 16 EPC projects in the roads and highways sector. Currently, the company is managing 18 ongoing projects, comprising 13 EPC and five Hybrid Annuity Model (HAM) projects. The company plans to utilize Rs 99.8 crore from the fresh issue proceeds to purchase equipment, Rs 413.4 crore to repay debts, and the remaining funds for general corporate purposes. As of the latest financials, Ceigall India has outstanding borrowings amounting to Rs 1,883.4 crore.
Growth and Profitability Metrics
In the last fiscal year, Ceigall India demonstrated remarkable growth, with profits surging by 83% to Rs 306.1 crore compared to the previous year. Revenue also increased by 46.5% to Rs 3,029.4 crore during the same period. The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) grew by 75.1% to Rs 517.7 crore, with a margin expansion of 280 basis points, reaching 17.1% compared to the previous fiscal year.
Key Dates and Debuts on Stock Exchanges
The company will finalize the basis of allotment for the IPO shares by August 6, with equity shares credited to the demat accounts of eligible investors by August 7. Ceigall India’s stock is set to debut on the bourses on August 8.
Managing and Registrar Details
ICICI Securities, IIFL Securities, and ICICI Securities are the appointed merchant bankers managing the IPO. Link Intime India has been appointed as the registrar for this public offer.
Conclusion
Investors keen on the infrastructure sector should consider Ceigall India’s IPO. With its strong financial performance, substantial order book, and strategic plans for growth, Ceigall India offers a compelling investment opportunity.
Disclaimer:
This article is intended for informational purposes only and should not be considered as financial advice. Potential investors are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. The author and publisher are not responsible for any investment decisions made based on the information provided in this article.
