Ceigall India gets SEBI’s green signal for ₹600 crore IPO; details here

Ceigall India Limited, a Punjab-based infrastructure and construction company has received the final approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO) on Monday, July 8th, according to a company statement.

The Ceigall India IPO plans to raise ₹617.69 crore from a fresh issue. The company is going to issue a total of 1.428 crore equity shares for a face value of ₹5 per share. The company filed its draft prospectus with SEBI on March 3, 2024.

The offer for sale will be from the promoters of the company, the group of promoters, and the individual shareholders of the company, according to the filing. The offer also includes a subscription of shares for the employees.

Promoters like Ramneek Sehgal are offering for sale up to 42.8 lakh shares, Ramneek Sehgal and Sons HUF 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 offering for sale up to 1,677 equity shares.

The construction company works on projects like elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways.

Ceigall India may also consider the pre-IPO placement to raise ₹123.50 crore through further issuing specified security through a private placement, preferential allotment, rights issue or any other methods. The fresh issue size may be reduced in case the company goes ahead with this plan, said the statement.

The money raised from the public issue will be used to purchase equipment, and repayment or advance payment of certain borrowings of the company and its subsidiaries.

The offer made through the book-building process, will have not more than 50 per cent allocation on a proportionate basis to qualified institutional buyers (QIBs), not less than 15 per cent for the non-institutional investors (NIIs), and not less than 35 per cent for the retail investors.

ICICI Securities Limited, IIFL Securities Limited, and JM Financial Limited are the book runners for the IPO.

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