Ceigall India Limited files DRHP with SEBI to raise funds via IPO

Infrastructure and construction company Ceigall India has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to raise funds for its initial public offering (IPO).

The IPO has a face value of ₹5 and consists of a fresh issue of ₹617.69 crore and an offer for sale of up to 14.28 million equity shares by the promoter and promoter group selling shareholders and individual selling shareholder. 

The offer for sale consists of the sale of equity shares of up to 4.28 million by Ramneek Sehgal, up to 7.59 million equity shares by Ramneek Sehgal and Sons HUF, up to 5,030 equity shares by Avneet Luthra, up to 9.27 lakh equity shares by Mohinder Pal Singh Sehgal, up to 5.53 lakh equity shares by Parmjit Sehgal, up to 9.22 lakh equity shares by Simran Sehgal and up to 1,677 equity shares by Kanwaldeep Singh Luthra. The offer includes a reservation for subscription by eligible employees.

The company, in consultation with the book-running lead managers, may consider a further issue of specified securities through a private placement, preferential allotment, rights issue or any other method aggregating to ₹123.50 crore as "Pre-IPO placement". If such placement is completed, the fresh issue size will be reduced, the company said.

The offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the net offer shall be available for allocation to non-institutional investors, and not less than 35% of the net offer shall be available for allocation to retail individual investors.

The proceeds from the fresh issue, to the extent of ₹118.78 crore will be used for purchase of equipment; ₹344.50 crore for repayment/ prepayment, in full or in part, of certain borrowings availed by the Company and its Subsidiary, CIPPL; and General corporate purposes.

Ceigall India Limited was established in July 2002 and over the past two decades has evolved from a small construction firm to a prominent player in Engineering, Procurement, and Construction (EPC), specializing in the design and development of various road and highway projects, as stated in a CARE Report.