Ceigall India IPO subscribed 13.78 times on day 3; QIB, NII show maximum interest

Ceigall India specialises in high-profile projects including elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways.

Ceigall India's IPO was subscribed 13.78 times by its third and last day of bidding, August 5. Qualified institutional buyers (QIBs) led with a subscription rate of 31.5 times their allotted shares, while non-institutional investors (NIIs) subscribed at a rate of 14.42 times their reserved portion. The part set aside for retail individual investors (RIIs) was subscribed 3.77 times. The employee portion was subscribed 11.55 times.

The IPO, valued at Rs 1,252.66 crore, includes a fresh issue of 1.71 crore shares worth Rs 684.25 crore and an offer for sale of 1.42 crore shares worth Rs 568.41 crore. The price band was set between Rs 380 and Rs 401 per share. Ceigall India will list its shares on the BSE and NSE, with a tentative listing date of August 8.

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The company has already secured significant backing from anchor investors, raising Rs 375.20 crore before the public offering. The IPO is managed by ICICI Securities Ltd, IIFL Securities Ltd., and JM Financial Ltd., with Link Intime India Pvt Ltd serving as the registrar.

Proceeds from the IPO will be allocated to acquiring new equipment and reducing existing debts, including those of its subsidiary, Ceigall Infra Projects Pvt Ltd. Ceigall India has reported a 47 percent increase in revenue and an 82 percent rise in profit after tax (PAT) for the fiscal year ending March 31, 2024, compared to the previous year.

Established in 2002, the company is a major player in infrastructure construction, with a focus on elevated roads, flyovers, bridges, and other high-profile projects. As of mid-2024, Ceigall India has completed over 34 road and highway projects and is managing 18 ongoing projects.

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