Ceigall India shares pare early gains; settle nearly 4% lower in debut trade

Ceigall India debuts

Shares of infrastructure company Ceigall India on Thursday ended with a discount of nearly 4 percent, giving up all initial gains amid profit-taking in the broader equity market.

The stock listed with a premium of nearly 2.99 percent at Rs 413 per share on BSE against the issue price of Rs 401 per share. During the day, it jumped 5.98 percent to Rs 425. However, it pared all early gains and declined 3.72 percent to settle at Rs 386.05.

At the NSE, it listed at Rs 419, up 4.48 percent. But, the stock failed to carry forward the momentum and slipped in the negative territory. The stock ended at Rs 387.80, down 3.29 percent.

The company's market valuation stood at Rs 6,725.18 crore.

The 30-share BSE Sensex declined by 581.79 points or 0.73 percent to settle at 78,886.22 in a volatile trade. After a day's breather, the NSE Nifty retreated to finish lower by 180.50 points or 0.74 percent to 24,117.

The initial public offering of Ceigall India got subscribed 13.75 times on the last day of share sale on Monday.

The Rs 1,252.66-crore initial share sale was a combination of 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, by the promoters, and an individual shareholder.

Price range for the offer was Rs 380-401 per share.

Proceeds from the fresh issue will be used for purchase of equipment, payment of debt and a portion will be used for general corporate purposes.

Founded in 2002, Ceigall India is an infrastructure construction company with experience in undertaking specialised structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways.

Its clientele includes public sector entities like Indian Railway Construction International Ltd, Military Engineer Services and Bihar State Road Development Corporation Ltd.