Ceigall India IPO Fully Subscribed on Day 2
The initial public offering (IPO) of Ceigall India, an infrastructure construction company, has been fully subscribed on the second day of its subscription period, which is set to conclude on August 5. The Rs 1,252.66 crore initial share sale has garnered significant interest from investors, receiving bids for 2,74,18,073 shares against the 2,23,13,663 shares on offer, according to data from the NSE.
Subscription Details and Investor Response
The IPO has seen varying levels of interest across different categories of investors. The category for non-institutional investors (NII) was subscribed 1.75 times, while the portion for retail individual investors (RII) was subscribed 1.65 times. However, the quota for qualified institutional buyers (QIB) saw a subscription of only 1%.
Anchor Investors
On Wednesday, Ceigall India announced that it had mobilized Rs 375 crore from anchor investors, indicating strong initial confidence in the company’s market offering.
IPO Price Band and Issue Size
The IPO has a price band of Rs 380-401 per share. The total issue size is Rs 1,252.66 crore, which includes a fresh issue of Rs 684.25 crore and an Offer-For-Sale (OFS) of up to 1.42 crore equity shares worth Rs 568.41 crore at the upper end of the price band. The OFS is being conducted by the promoters and an individual shareholder, including:
- Ramneek Sehgal
- Ramneek Sehgal and Sons HUF
- Avneet Luthra
- Mohinder Pal Singh Sehgal
- Parmjit Sehgal
- Simran Sehgal
- Kanwaldeep Singh Luthra
Utilization of Proceeds
The proceeds from the fresh issue will be allocated for multiple purposes, including:
- Purchase of Equipment
- Payment of Debt
- General Corporate Purposes
Company Background and Financial Performance
Founded in 2002, Ceigall India specializes in infrastructure construction, undertaking specialized structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways. As of June 2024, the company’s order book stood at an impressive Rs 9,470 crore.
Clientele
Ceigall India’s clientele includes prominent public sector entities such as:
- Indian Railway Construction International Ltd
- Military Engineer Services
- Bihar State Road Development Corporation Ltd
Revenue and Profit Growth
The company’s revenue from operations surged by 46.5% in fiscal 2024, reaching Rs 3,029.35 crore compared to Rs 2,068.17 crore in fiscal 2023. Similarly, profit after tax grew to Rs 304.3 crore from Rs 167.27 crore during the same period.
Lead Managers and Listing Details
The IPO’s book-running lead managers are:
- ICICI Securities Ltd
- IIFL Securities Ltd
- JM Financial Ltd
The equity shares are proposed to be listed on both the BSE and the NSE.
Conclusion
The full subscription of Ceigall India’s IPO on the second day of the subscription period underscores the strong market confidence in the company’s robust financial performance and strategic growth plans. The diverse investor interest, particularly from non-institutional and retail investors, highlights the potential for significant growth and value creation.
For those who have invested or are considering investment in Ceigall India’s IPO, it is crucial to keep track of the allotment status and further announcements regarding the listing on the BSE and NSE.
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