The Ceigall India IPO intends to raise Rs 617.69 crore through a fresh issue. The company plans to offer 1.428 crore equity shares with a face value of Rs 5 per share. The draft prospectus was submitted to SEBI on March 3, 2024.

As per the company’s announcement, Ceigall India Limited, a Punjab-based infrastructure and construction firm, has obtained final approval from the Securities and Exchange Board of India (SEBI) to raise capital through an initial public offering (IPO) on Monday, July 8.

According to the filing, the company’s promoters, a group of promoters, and individual shareholders will make the offer for sale. The offer also includes a share subscription for the employees.

Ramneek Sehgal and Sons HUF are offering for sale up to 42.8 lakh shares, Ramneek Sehgal up to 75.9 lakh shares, Avneet Luthra up to 5,030 equity shares, Mohinder Pal Singh Sehgal up to 9.27 lakh shares, Parmjit Sehgal up to 5.53 lakh equity shares, Simran Sehgal up to 9.22 lakh shares, and Kanwaldeep Singh Luthra is offering for sale up to 1,677 equity shares, are among the stakeholders of the company.

The construction company specializes in elevated roads, flyovers, bridges, railway bridges, tunnels, highways, expressways, and runways.

Ceigall India may also explore a pre-IPO placement to raise Rs 123.50 crore by issuing specified security through a private placement, preferential allotment, rights issue, or other method. If the company goes ahead with this plan, as per the statement, the fresh issue size may be reduced.

The funds raised from the public issue will be used to purchase equipment and repay or advance certain company and subsidiary borrowings.

The offer, made through the book-building process, will allocate a maximum of 50% on a proportionate basis to qualified institutional buyers (QIBs), not less than 15% to non-institutional investors (NIIs), and not less than 35% to retail investors.

According to the company statement, Ceigall India has completed over 34 projects in the roads and highways sector, including 16 EPC and one HAM project. It also has approximately 15 ongoing projects in its pipeline.