The IPO of Ceigall India, an infrastructure construction company, will close for subscription today. The IPO has so far been subscribed 1.23 times.
The ₹1,252.66-crore IPO consists of a fresh issue of up to ₹684.25 crore and an offer-for-sale of up to 1.42 crore shares worth ₹568.41 crore by promoter selling shareholders and individual selling shareholders. The price band is ₹380–401 a share. As against an issue size of 2.23 crore shares (net-off anchor portion), the IPO received bids for 2.74 crore shares.
Investors can bid a minimum of 37 equity shares and in multiples of 37 equity shares thereafter.
Up to 50 per cent of the net offer will be available to qualified institutional buyers, 15 per cent to non-institutional investors and 35 per cent to retail investors.
- Also read: Studds Accessories re-ignites plans for IPO
While QIBs are yet to make bid, retail investors’ portion was subscribed by 1.65 times and HNIs by 1,75 times. Employees quota, (58,479 shares) was oversubscribed by nearly 5.5 times. The company is giving a discount of ₹38 a equity share to its employees
ICICI Securities Limited, IIFL Securities Limited, and JM Financial Limited are the book-running lead managers and Link Intime India Private Limited is the registrar to the offer.
The equity shares are proposed to be listed on BSE and NSE. The net proceeds of the fresh Issue are to be utilised for purchase of equipment (₹99.79 crore) and re-payment/pre-payment. in full or part, of certain borrowings ₹413.4 crore.
As part of the IPO exercise, the company has garnered ₹375.20 crore from anchor investors.
Foreign and domestic institutions such as Nomura Funds Ireland Public Ltd – India Equity Fund, ICICI Prudential Flexicap Fund, HDFC Smallcap Fund, HDFC Trustee Company Ltd, Nippon Life India Smallcap Fund, Kotak Infrastructure & Economic Reform Fund, Axis Mutual Fund, Bandhan Infrastructure Fund, SBI General Insurance Company, Nataxis International Fund, Carmignac Portfolio, Goldman Sachs (Singapore) PTE- ODI, Tata Multicap Fund, Tata Dividend Yield Fund, ICICI Prudential Life Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd, Max Life Insurance Ltd, Edelweiss Trusteeship Co. Ltd. Bank of India Manufacturing & Infrastructure Fund, Universal Sompo General Insurance Company Ltd, Hero Venture Trust, Integrated Core Strategies(Asia) Pte Ltd. Societe Generale, Morgan Stanley Asia (Singapore) Pte and Citigroup Global Markets Mauritius Pvt. Ltd, participated in the anchor book.
According to SBI Securities, Ceigall is one of the fastest growing engineering, procurement and construction (EPC) companies in terms of 3-year revenue CAGR as of FY24, among the companies with a turnover of over ₹1,000 crore in FY24. The company’s revenues have grown at a CAGR of 50.1 per cent over FY21-24.
With a diverse portfolio of projects spanning elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, metros, expressways, and runways, Ceigall India Ltd has established itself as a key player in the Indian infrastructure sector. The company’s robust business model, significant financial growth, and strategic empanelments position it as a formidable entity in the industry.
As of June 30, 2024, the company’s order book stood at ₹9,470.84 crore, with significant contributions from NHAI projects, indicating a robust pipeline of future projects, according to Chola Securities.
