Ceigall India Ltd Secures Rs 375 Crore from Anchor Investors Ahead of IPO
Ceigall India Ltd, a prominent infrastructure construction company, has successfully mobilized Rs 375 crore from anchor investors ahead of its initial public offering (IPO), set to open for public subscription on August 1. The company’s move has garnered significant interest from a range of institutional investors.
Anchor Investor Highlights
The anchor investor segment of the IPO includes major institutional players such as ICICI Prudential Mutual Fund (MF), HDFC MF, Axis MF, Bandhan MF, ICICI Prudential Life Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd, & Max Life Insurance Ltd. Additionally, global financial institutions including Nomura, Integrated Core Strategies (Asia) PTE Ltd, Societe Generale, Morgan Stanley Asia (Singapore) PTE, and Citigroup Global Markets Mauritius have also been allocated shares in this round.
According to a circular published on the Bombay Stock Exchange (BSE) website, Ceigall India has allotted 93.56 lakh shares at Rs 401 per share to 29 funds, totaling Rs 375.2 crore. The IPO is expected to be a substantial event, with a price band set between Rs 380 and Rs 401 per share.
IPO Details
Ceigall India’s IPO will open for subscription on August 1 and close on August 5. The issue comprises a fresh issuance 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. This brings the total size of the IPO to Rs 1,252.66 crore.
The promoters of Ceigall India, including Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, Simran Sehgal, and individual shareholder Kanwaldeep Singh Luthra, are divesting their stakes through this public issue.
Use of Proceeds
The funds raised from the fresh issue will be allocated for various purposes, including the purchase of new equipment, debt repayment, and general corporate needs.
Company Overview
Established in 2002, Ceigall India Ltd specializes in complex infrastructure projects. The company’s portfolio includes elevated roads, flyovers, bridges, railway overbridges, tunnels, highways, expressways, and runways. As of June 2024, Ceigall India boasts an impressive order book valued at Rs 9,470 crore.
The company’s clientele features several prestigious public sector entities, such as Indian Railway Construction International Ltd, Military Engineer Services, and Bihar State Road Development Corporation Ltd.
Financial Performance
In fiscal year 2024, Ceigall India reported a significant increase in revenue, which surged by 46.5% to Rs 3,029.35 crore, compared to Rs 2,068.17 crore in fiscal year 2023. The company’s profit after tax also saw substantial growth, rising to Rs 304.3 crore from Rs 167.27 crore.
IPO Allocation
For the IPO, 50% of the issue size has been allocated to qualified institutional buyers, 35% to retail investors, and 15% to non-institutional investors. Investors are required to bid for a minimum of 37 equity shares and in multiples thereof.
Lead Managers and Listing
ICICI Securities Ltd, IIFL Securities Ltd, and JM Financial Ltd are acting as the lead managers for the IPO. The equity shares of Ceigall India are scheduled to be listed on both the BSE and NSE.
This IPO marks a significant milestone for Ceigall India, positioning it for further growth and expansion within the infrastructure sector.
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