Ceigall India, an infrastructure construction company, will open its initial public offering (IPO) for subscription on August 1, with the price band set to be announced on July 29. The IPO will comprise a fresh issuance of equity shares worth Rs 684.3 crore and an offer-for-sale (OFS) of 1,41,74,840 equity shares by existing shareholders, including promoters.
The selling shareholders in the OFS include promoters Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, and Simran Sehgal. The company has allocated up to Rs 2 crore worth of shares for its employees, who may receive shares at a discount to the final issue price.
The public issue will close on August 5, with the anchor book opening for a day on July 31, just before the IPO opens to the public.
Share Allocation:
- 50% of the net issue (excluding the employees’ portion) is reserved for qualified institutional buyers (QIBs).
- 35% is reserved for retail investors.
- 15% is allocated for non-institutional investors (high-net-worth individuals).
Shareholding Structure:
The Sehgal family owns 99.99% of the company, while Kanwaldeep Singh Luthra holds the remaining 0.01% of the paid-up equity.
Company Overview:
Ceigall India, based in Delhi, has transitioned from a small construction company to a prominent EPC player over the past two decades. It boasts an order book of Rs 9,470.8 crore, with 80.3% of projects from the National Highway Authority of India (NHAI). The company has completed over 34 projects, including 16 EPC projects, and has 18 ongoing projects, consisting of 13 EPC and five HAM projects.
Use of IPO Proceeds:
- Rs 99.8 crore will be used for purchasing equipment.
- Rs 413.4 crore will go towards repaying debts, with outstanding borrowings of Rs 1,883.4 crore.
- The remaining funds will be used for general corporate purposes.
Financial Performance:
In fiscal 2024, the company’s profit grew by 83% to Rs 306.1 crore, while revenue increased by 46.5% to Rs 3,029.4 crore. EBITDA rose by 75.1% to Rs 517.7 crore, with a margin expansion of 280 bps to 17.1%.
IPO Timeline:
- Basis of Allotment Finalization: August 6
- Equity Shares Credit to Demat Accounts: August 7
- Listing Date: August 8
ICICI Securities, IIFL Securities, and ICICI Securities are the merchant bankers managing the IPO, with Link Intime India serving as the registrar.
