Ceigall India Limited, an infrastructure and construction company based in Punjab, has received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The company plans to raise ₹617.69 crore from this IPO.
Fresh Issue Details
Ceigall India will issue 1.428 crore equity shares with a face value of ₹5 per share. The company filed its draft prospectus with SEBI on March 3, 2024.
Offer for Sale (OFS)
The IPO includes an offer for sale from the company’s promoters and other shareholders. Key promoters like Ramneek Sehgal are offering up to 42.8 lakh shares, while Ramneek Sehgal and Sons HUF are offering up to 75.9 lakh shares. Other promoters and shareholders are also selling various quantities of their shares.
Company Background
Ceigall India is involved in projects such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways. The company has completed over 34 projects, including 16 EPC and one HAM project in the roads and highways sector. It has nearly 15 ongoing projects in its pipeline.
Pre-IPO Placement
Ceigall India may consider raising ₹123.50 crore through a pre-IPO placement. This could involve issuing specified securities through private placement, preferential allotment, rights issue, or other methods. If this plan goes ahead, the size of the fresh issue will be reduced accordingly.
Use of Funds
The money raised from the IPO will be used to purchase equipment and repay or prepay certain borrowings of the company and its subsidiaries.
Allocation
The offer will be made through the book-building process, with up to 50% allocated to qualified institutional buyers (QIBs), at least 15% to non-institutional investors (NIIs), and at least 35% to retail investors.
Book Runners
ICICI Securities Limited, IIFL Securities Limited, and JM Financial Limited are the book runners for the IPO.
Conclusion
Ceigall India is gearing up for a significant IPO to fund its ongoing and future projects. The approval from SEBI marks a crucial step in this process.
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