Ceigall India IPO subscribed 60% on day 1, NIIs lead

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

Ceigall India Ltd's IPO has been subscribed 60 percent on the opening day, August 1, with Non-Institutional Investors (NIIs) leading the charge by subscribing 0.9 times their allocated quota. Retail Individual Investors (RIIs) closely followed, subscribing 0.8 times their reserved portion. Qualified Institutional Buyers (QIBs) placed bids for more than 20,800 shares of the 61.9 lakh shares available to them.

The employee portion was subscribed almost 3 times.

The IPO bidding process will run until August 5. The IPO, valued at Rs 1,252.66 crore, comprises 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.

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The IPO's price band is set between Rs 380 and Rs 401 per share, with a minimum lot size of 37 shares. Retail investors need to invest at least Rs 14,837, while small and large institutional investors have to make minimum investments of Rs 2.08 lakh and Rs 10.09 lakh, respectively. Ceigall India plans to list its shares on both the BSE and NSE, with a tentative listing date of August 8.

The company has already garnered significant interest from anchor investors, raising Rs 375.20 crore ahead of the public offering. ICICI Securities Ltd, IIFL Securities Ltd., and JM Financial Ltd are spearheading the IPO as book-running lead managers, with Link Intime India Pvt Ltd serving as the registrar.

The IPO proceeds are earmarked for purchasing new equipment and repaying or prepaying existing borrowings. Specifically, the funds will help reduce debts held by both Ceigall India and its subsidiary, Ceigall Infra Projects Pvt Ltd.

Also Read | Ceigall India: Should you subscribe to this construction company IPO?

The company has demonstrated strong financial performance, with 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, Ceigall India is a prominent player in the infrastructure construction sector. The company specialises in high-profile projects including elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways. By mid-2024, Ceigall India has completed over 34 road and highway projects and currently manages 18 ongoing projects.

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