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Introduction To Ceigall India IPO
Ceigall India Limited, incorporated in July 2002, is doing a book-built issue of Rs 1,252.66 crores. The Initial Public Offering (IPO) opens on August 1, 2024 and ends on August 5, 2024.
The Ceigall India Limited IPO subscription consists of a fresh issue worth Rs 684.25 crores (1.71 crore shares) and an offer for sale worth Rs 568.41 crores (1.42 crore shares). The company will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The allotment of shares of Ceigall India will take place on August 6, 2024. The price band is set between Rs 380 and Rs 401 per share. The minimum lot size for small Non-Institutional Bidders is 14 Lots which consists of 518 shares, and amounts to Rs 2,07,718. For big Non-Institutional Bidders is 68 lots which consists of 2,516 shares amounting to Rs 10,08, 916.
Link Intime India Private Limited is the registrar for the IPO. Further, the book-running lead managers are IIFL Securities Limited, ICICI Securities, and JM Financials Limited.
Ceigall India Limited Company Details
The company’s journey started with an important project—their first road project for the Punjab Public Works Department, Ludhiana division. They received the project in 2006, a significant milestone for them. They completed the project, which covered 20.42 lane kilometres and cost Rs 62.94 million.
In 2014, Ceigall India won its first four-lane highway EPC project from NHAI, covering 24.08 lane kilometres at Rs 378.10 million. This further strengthened their position in the industry.
Ceigall India is currently working on a four-lane elevated corridor EPC project, which will make the company one of India’s longest four-lane elevated corridor portions, at 14.26 kilometres (source CARE Report).
The Company has completed over 34 road and highway projects, including one HAM project, five O&M projects, and 12 Item Rate Projects.
They are undertaking 18 ongoing projects, including 13 EPC projects and five HAM projects, covering a wide range of infrastructure projects, from elevated corridors to multi-lane highways. They track record shows that we completed seven projects before the scheduled completion date.
As of March 31, 2024, they Ceigall India have constructed over 1,739.88 lane kilometers of roads and highways, including specialised structures like elevated roads, flyovers, bridges, and tunnels. They have ongoing projects of 1,488.17 lane kilometers and 2,158.72 lane kms of O&M projects.
They have worked on major multi-lane highway projects with specialised structures in various states of India, including Punjab, Haryana, Rajasthan, Uttar Pradesh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Delhi, Maharashtra, and Bihar.
In fiscal 2022, the company’s projects were located in six states, and its plan to expand to ten states by Fiscal 2024. Their leader, Ramneek Sehgal, has over 20 years of experience in the construction industry. Their team comprises over 2,256 staff members who are crucial in successfully executing their projects.
Ceigall India Limited IPO Details:
| Ceigall India IPO Opening Date and Closing Date | August 1, 2024 to August 5, 2024 |
| Face Value | Rs 5 per share |
| Price Band | Rs 380 to Rs 401 per share |
| Lot Size | 37 Shares |
| Total Issue Size | 31,238,480 shares (aggregating up to Rs 1,252.66 Cr) |
| Fresh Issue | 17,063,640 shares (aggregating up to Rs 684.25 Cr) |
| Offer for Sale | 14,174,840 shares of Rs 5 (aggregating up to Rs 568.41 Cr) |
| Employee Discount | Rs 38 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre-issue | 15,71,36,000 |
| Shareholding post-issue | 17,41,99,640 |
Ceigall India Ltd IPO Tentative schedules :
| IPO Open Date | Thursday, August 1, 2024 |
| IPO Close Date | Monday, August 5, 2024 |
| Basis of Allotment | Tuesday, August 6, 2024 |
| Initiation of Refunds | Wednesday, August 7, 2024 |
| The Credit of Shares to Demat | Wednesday, August 7, 2024 |
| Listing Date | Thursday, August 8, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 5, 2024 |
Applications by different investors, Ceigall India Limited lot size, shares and their value:
| Application | Lots | Shares | Amount (in Rs) |
| Retail (Min) | 1 | 37 | 14,837 |
| Retail (Max) | 13 | 481 | 1,92,881 |
| S-HNI (Min) | 14 | 518 | 2,07,718 |
| S-HNI (Max) | 67 | 2,479 | 9,94,079 |
| B-HNI (Min) | 68 | 2,516 | 10,08,916 |
Investors categories and Ceigall India Limited shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
Ceigall India Limited Financials:
| Period Ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
| Assets (Rs in crores) | 2,592.19 | 1,827.82 | 959.14 |
| Revenue (Rs in crores) | 3,066.19 | 2,087.04 | 1,146.50 |
| Profit After Tax (Rs in crores) | 304.91 | 167.7 | 126.43 |
| Net Worth (Rs in crores) | 906.41 | 593.06 | 431.25 |
| Total Borrowing (Rs in crores) | 1,811.02 | 1,252.58 | 652.12 |
Ceigall India Limited IPO Key performance indicators (KPI) and their values
| KPI | Values |
| Return on Equity (ROE) | 33.57% |
| Return on Capital Employed (ROCE) | 31.98% |
| Debt/Equity | 1.17 |
| Return on Net Worth (RoNW) | 33.57% |
| Price to Book Value (P/BV) | 6.95 |
| Profit After Tax (PAT) Margin (%) | 10.05 |
Ceigall India Limited IPO GMP (Grey Market Premium)
The most recent Ceigall India Limited GMP IPO is Rs 90, as of July 30, 2024, 03:55 PM. Considering a price band 401.00, the estimated listing price for Ceigall India Limited IPO is Rs 491 (market capitalisation price + today’s GMP). This indicates an expected percentage gain/loss per share of 22.44%.
For the Ceigall India Ltd IPO, the Retail Subject to Sauda is Rs 2500, and the Small HNI Subject to Sauda is Rs 35000.m The Grey Market Premium (GMP) ranges from a low of Rs 0 to a high of Rs 140.
Objectives of the Ceigall India IPO
The Company intends to use the Net Proceeds from the fresh issue for the following purposes:
1) Acquiring new equipment,
2) Fully or partially repaying certain loans taken by the Company and its subsidiary, Ceigall Infra Projects Private Limited.
Major Risks Associated with Ceigall India IPO
According to the Red Herring Prospectus (RHP) of Ceigall India IPO, the risks are as follows:
1) Their business relies mainly on contracts awarded by government authorities. As of June 30, 2024, 80.31% of the company’s orders came from NHAI projects, while the remaining 19.69%, were from contracts with central, state, governmental, and local departments.
Adverse changes in government policies could lead to the contracts being closed, terminated, restructured, or renegotiated, which could significantly impact our business, profitability, and results.
2) The company has a history of negative cash flows from its operations, which may continue to pose financial challenges like declining earnings, and negative cash flows from operating activities in the future.
3) Delays in completing construction of ongoing projects could lead to the termination of our contracts, cost overruns, or claims for damages, which could hurt our cash flows, business, results of operations, and financial condition.
Frequently Asked Questions (FAQs)
What is the price band of the Ceigall India IPO?
The issue price band of Ceigall India IPO is between Rs 380 and Rs 401 per share.
What is the Retail Investors’ quota, for the Ceigall India Ltd IPO application?
The retail investors’ quota for Ceigall India IPO application is not less than 35% of the issue.
Where can we track the performance of the Ceigall India stock, once it’s listed on the Stock Exchanges?
Unicorn Signals provides the track of a stock’s performance, two to three days later once it’s listed on the stock exchange.
How to subscribe to Ceigall India’s IPO?
A Subscription can be made from the opening to the closing date of the IPO. It can be done with your demat account, contact your bank or financial institution for the same.
What is the closing time for the subscription of Ceigall India IPO?
The Ceigall India IPO subscription will end at 5 PM on August 5, 2024. However, most brokers will stop accepting applications between 1 PM and 3 PM.
Where can I get detailed information on the Ceigall India Ltd IPO?
Detailed information on the Ceigall India IPO can be found through the following documents filed with SEBI by the company.
a) Draft Red Herring Prospectus (DRHP)
b) Red Herring Prospectus (RHP)
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