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31 July 2024

Ceigall India Limited IPO

Incorporated in July 2002, the company has achieved substantial growth in the roads and highways sector. We have completed over 34 projects, including 16 EPC, one HAM, five O&M, and 12 Item Rate projects. Noteworthy accomplishments include a significant four-lane highway EPC project in 2014 and one of India’s longest four-lane elevated corridors. As of March 31, 2024, we have constructed 1,739.88 lane km of roads, with 1,488.17 lane km currently ongoing and 2,158.72 lane km in O&M.

We operate across ten states and are led by Promoter and MD Ramneek Sehgal, supported by a team of over 2,256 professionals. The Ceigall India IPO is a book-built issue valued at ₹1,252.66 crores. This offering includes a fresh issue of 1.71 crore shares, raising ₹684.25 crores, and an offer for sale of 1.42 crore shares, generating ₹568.41 crores. The IPO will open for subscription on August 1, 2024, and close on August 5, 2024. Allotments are expected to be finalized on August 6, 2024, with shares scheduled to be listed on the BSE and NSE on August 8, 2024. The price band for the IPO is set between ₹380 and ₹401 per share. Retail investors must apply for a minimum of 37 shares, requiring an investment of ₹14,837. For NII investors, the minimum lot size is 14 lots (518 shares), totalling ₹207,718, while bNII investors must apply for 68 lots (2,516 shares), amounting to ₹1,008,916.ICICI Securities Limited, IIFL Securities Ltd, and JM Financial Limited are the book-running lead managers for the IPO, with Link Intime India Private Ltd serving as the registrar. For more details, refer to the Ceigall India IPO Red Herring Prospectus (RHP).

Ceigall India IPO Overview

Detail	Description
IPO Date	August 1, 2024 to August 5, 2024
Listing Date	[.]
Face Value	₹5 per share
Price Band	₹380 to ₹401 per share
Lot Size	37 Shares
Total Issue Size	31,238,480 shares (aggregating up to ₹1,252.66 Cr)
Fresh Issue	17,063,640 shares (aggregating up to ₹684.25 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE BSE
Shareholding pre issue	157,136,000
Shareholding post issue	13,556,121
Market Maker portion	174,199,640

Ceigall India IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Thursday, August 1, 2024
IPO Close Date	Monday, August 5, 2024
Basis of Allotment	Tuesday, August 6, 2024
Initiation of Refunds	Wednesday, August 7, 2024
Credit of Shares to Demat	Wednesday, August 7, 2024
Listing Date	Thursday, August 8, 2024
Cut-off time for UPI mandate confirmation	5 PM on August 5, 2024

Ceigall India IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	37	₹14,837
Retail (Max)	13	481	₹192,881
HNI (Min)	14	518	₹207,718

Ceigall India IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net Issue
Retail Shares Offered	Not less than 35% of the Net Issue
NII (HNI) Shares Offered	Not less than 15% of the Net Issue

Ceigall India IPO Promoter Holding

Share Holding Pre Issue	99.99%
Share Holding Post Issue

Company & Financials

Established: July 2002.

Focus: Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) projects.

Project Scope: Operates across ten Indian states.

Notable Projects:

● Initial road project for Punjab in 2006 (20.42 lane km, ₹6.29 crores).
● First NHAI four-lane highway EPC project in 2014 (24.08 lane km, ₹37.81 crores).
● Recent four-lane elevated corridor project (14.26 km, ₹1,969.39 crores).

Current Bidding Capacity:

● Up to ₹5,700 crores for NHAI EPC projects.
● Up to ₹5,500 crores for NHAI HAM projects.

Empanelment: Eligible for Delhi Metro Rail Corporation and public sector tenders for railways, bridges, and tunnels.

Completed Projects: Over 34, including 16 EPC, 1 HAM, 5 O&M, and 12 Item Rate projects.

Ongoing Projects: 18 projects, including elevated corridors, bridges, flyovers, rail over-bridges, tunnels, expressways, runways, metro projects, and multi-lane highways.

Additional Activities: Handles operation and maintenance (O&M) and subcontracting projects.

Ceigall India Limited Financial Information

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	2,592.19	1,827.82	959.14
Revenue	3,066.19	2,087.04	1,146.50
Profit After Tax	304.91	167.70	126.43
Net Worth	906.41	593.06	431.25
Total Borrowing	1,811.02	1,252.58	652.12
Amount in ₹ Crore

Key Performance Indicator

KPI	Values
ROE	33.57%
ROCE	31.98%
Debt/Equity	1.17
RoNW	33.57%
P/BV	6.95
PAT Margin (%)	10.05

	Pre IPO	Post IPO
EPS (Rs)	19.4	17.5
P/E (x)	20.67	22.91

Objectives of Ceigall India Limited IPO

The company plans to use the net proceeds for the following purposes (collectively referred to as the "Objectives"):

1. Acquiring new equipment.
2. Repaying or prepaying, either fully or partially, certain borrowings taken by:
- 1. The Company
- 2. Its subsidiary, Ceigall Infra Projects Private Limited.

Ceigall India IPO Review

The company specializes in EPC infrastructure contracting and has recently partnered with Delhi Metro for rail infrastructure projects. It has established a strong position in the NHAI project sector. Operating in a highly competitive and fragmented industry, the IPO appears to be priced on the higher side based on FY24 earnings. However, given the current order inflow and substantial order book, it represents a long-term investment opportunity. Investors may consider allocating moderate funds with a focus on long-term growth.

FAQs for Ceigall India IPO

What is Ceigall India IPO?

The Ceigall India IPO is a main-board offering of 31,238,480 equity shares, each with a face value of ₹5, totalling up to ₹1,252.66 crores. The shares are priced between ₹380 and ₹401 per share, with a minimum order quantity of 37 shares.
When will Ceigall India IPO?

The IPO opens on August 1, 2024, and closes on August 5, 2024.
What is Ceigall India IPO Investors Portion?

The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
What is Ceigall India's IPO Size?

Ceigall India IPO is a main-board IPO of 31,238,480 equity shares of a face value of ₹5 aggregating up to ₹1,252.66 Crores
What is the Ceigall India IPO Price Band?

Ceigall India IPO price band is set at ₹380 to ₹401 per share.
What is Ceigall India IPO Minimum and Maximum Lot Size?

Ceigall India IPO lot size is 37 Shares, and the minimum amount required is ₹14,837.
What is the Ceigall India IPO Allotment Date?

Ceigall India IPO will be done on Tuesday, August 6, 2024, and the allotted shares will be credited to your demat account by Wednesday, August 7, 2024.
What is the Ceigall India IPO Listing Date?

The Ceigall India IPO listing date is not yet announced. The tentative date of Ceigall India IPO listing is Thursday, August 8, 2024