Ceigall India IPO to open for subscription on August 1; sets price band at ₹380-401 apiece

Ceigall India IPO price band: The Ceigall India Limited IPO price band has been fixed in the range of ₹380 to ₹401 per equity share of the face value of ₹5. The Ceigall India IPO date of subscription is scheduled for Thursday, August 1, and will close on Monday, August 5. The allocation to anchor investors for the Ceigall India IPO is scheduled to take place on Wednesday, July 31.

The floor price and the cap price are 76 times and 80.20 times the face value of the equity shares respectively. The Ceigall India IPO lot size is 65 equity shares and in multiples of 37 equity shares thereafter. At the upper end of the price band is 20.70 times as compared to the average industry peer group PE ratio of 18.34 weighted average return on net worth for last three full financial year is 31.05%.

Ceigall India IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. A discount of ₹38 per equity share is being offered to eligible employees in the employee reservation portion.

Tentatively, Ceigall India IPO basis of allotment of shares will be finalised on Tuesday, August 6, and the company will initiate refunds on Wednesday, August 7, while the shares will be credited to the demat account of allottees on the same day following refund. Ceigall India share price is likely to be listed on BSE and NSE on Thursday, August 8.

As of Fiscal 2024, Ceigall India has the fastest-growing engineering, procurement, and construction (EPC) industry when looking at three-year revenue compound annual growth rate. Among its rivals, the firm has seen one of the greatest annual revenue growth rates in fiscal 2024, growing by over 43.10%. In the roads and highways sector, it has completed over 34 projects, comprising 16 EPC, 1 HAM, 5 O&M, and 12 item rate projects. There are now 18 active projects at Ceigall, consisting of 5 HAM projects and 13 EPC projects. These projects include tunnels, bridges, flyovers, elevated corridors, expressways, runways, metro projects, and multi-lane roads.

Ramneek Sehgal, Ramneek Sehgal and Sons HUF, and RS Family Trust are the company's promoters.

As per the red herring prospectus (RHP), the company's listed peers are PNC Infratech (with a P/E of 14.75), G R Infraprojects (with a P/E of 12.60), H.G. Infra Engineering (with a P/E of 20.43), KNR Constructions (with a P/E of 13.17), ITD Cementation India (with a P/E of 29.39), and J Kumar Infraprojects (with a P/E of 19.68).

Between March 31, 2024, and March 31, 2023, Ceigall India Limited's profit after tax (PAT) climbed by 81.81% while its revenue increased by 46.92%.

Ceigall India IPO details

The IPO consists of an offer-for-sale (OFS) of 1,41,74,840 equity shares by existing shareholders, including promoters, and a fresh issue of equity shares for ₹684.3 crore by the firm.

The selling shareholders in the OFS include promoters Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, and Simran Sehgal.

The company intends to use the net proceeds to finance the following goals: general corporate purposes; equipment purchases; full or partial repayment or prepayment of certain loans taken out by the company; and Ceigall Infra Projects Private Limited, the company's subsidiary.

The registrar for the Ceigall India IPO is Link Intime India Private Ltd, while the book running lead managers are ICICI Securities Ltd, IIFL Securities Ltd, and JM Financial Ltd.

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