Ceigall India, an infrastructure construction company, will open its initial public offering (IPO) for bids on August 1, closing on August 5. The IPO includes new shares worth ₹617.69 crore and an offer for sale (OFS) of up to 1.42 crore shares, each with a face value of ₹5.
Stakeholders Selling Shares
Under the OFS, shareholders including Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, Simran Sehgal, and Kanwaldeep Singh Luthra will sell part of their stakes.
Pricing and Allocation
The price range, employee discount, and minimum bid size will be determined by the company in consultation with the lead managers and will be announced soon. Up to 50% of the IPO is reserved for qualified institutional buyers (QIB), at least 15% for non-institutional investors, and at least 35% for retail investors. Ceigall India shares will be listed on both the NSE and BSE platforms.
Proceeds and Usage
The net proceeds from the OFS will go to the selling shareholders, as outlined in the Red Herring Prospectus (RHP). The company will not receive any money from the OFS. However, proceeds from the fresh issue will be used to purchase equipment, repay or prepay certain borrowings of the company and its subsidiaries, and for general corporate purposes.
Company Background
Established in July 2002, Ceigall India has grown from a small construction firm to a leading player in engineering, procurement, and construction (EPC). The company specializes in designing and developing various road and highway projects. Based in Ludhiana, Ceigall India is one of the fastest-growing EPC companies in terms of three-year revenue Compound Annual Growth Rate (CAGR) up to Fiscal 2023, with a turnover exceeding ₹1,000 crore in Fiscal 2023.
The company achieved a remarkable year-on-year revenue growth of 82.67% in Fiscal 2023 and grew at a CAGR of 37.65% between Fiscals 2020 and 2023, according to the CARE Report quoted in its DRHP.
Lead Managers and Registrar
IIFL Securities, ICICI Securities, and JM Financial are the lead managers for the issue, while Link Intime India is the registrar for the offer.
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