Ceigall India IPO Fully Subscribed Despite Market Dip: Should You Buy Before Bidding Ends Monday?

The Ceigall India Limited IPO launched on August 1, 2024, and will be open for bidding until August 5, 2024. Despite a significant market downturn on Friday, the IPO has been fully subscribed. The price range for Ceigall India shares is set between ₹380 and ₹401 per share. The company aims to raise ₹1,252.66 crore, with ₹684.25 crore from fresh shares and ₹568.41 crore through an Offer for Sale (OFS).

Grey Market Premium (GMP)

As of today, the grey market premium (GMP) for Ceigall India shares is ₹61, down from ₹75 on Friday. Market analysts attribute this decline to weak trends in global markets, which saw a sell-off in Asian, European, and US stocks last week. Despite these market conditions, the IPO has attracted strong interest and remains fully subscribed. With one day of bidding left, there is potential for more subscriptions on Monday.

As for the subscription details, the IPO was booked 1.23 times overall. The retail portion was subscribed 1.65 times, the non-institutional investor (NII) portion 1.75 times, and the qualified institutional buyer (QIB) portion 0.01 times.

Recommendation by Brokerage Firms

Several brokerage firms have recommended subscribing to the IPO. Anand Rathi cited the company’s strong order book and diverse project portfolio as positives, recommending a “Subscribe – Long Term” rating. BP Equities also gave a “Subscribe” rating, noting the fair valuation at a P/E of 20.7x based on FY24 earnings.

Other firms, including Ajcon Global Services, Arihant Capital Markets, Indsec Securities, Marwadi Shares and Finance, Motilal Oswal, Nirmal Bang, Reliance Securities, SBI Capital Securities, and StoxBox, also recommended subscribing to the IPO.

Key dates to remember: the allotment of shares is tentatively scheduled for August 6, 2024, with the listing likely on August 8, 2024, following the ‘T+3’ rule.