Ceigall India Ltd Files for IPO to Raise Funds

Infrastructure construction company Ceigall India Ltd has filed preliminary papers with the Securities and Exchange Board of India (Sebi) to raise funds through an Initial Public Offering (IPO). The Ludhiana-based company's IPO comprises a fresh issue of Rs 617.69 crore and an Offer For Sale (OFS) of up to 1.43 crore equity shares by the promoters and an individual selling shareholder.

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Promoters and Shareholders

Promoters and promoter group entities, including Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, Simran Sehgal, and individual shareholder Kanwaldeep Singh Luthra, are divesting their stakes in the proposed public issue. The offer also includes a reservation for subscription by eligible employees.

Pre-IPO Placement and Fund Utilization

The company may consider raising Rs 123.50 crore in the pre-IPO placement round. If such placement is completed, the fresh issue size will be reduced. Proceeds from the fresh issue, amounting to Rs 118.78 crore, will be utilized for the purchase of equipment, and Rs 344.50 crore for debt payment, with a portion reserved for general corporate purposes.

Company Profile and Clientele

Founded in 2002, Ceigall India is an infrastructure construction company specializing in undertaking specialized structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways. As of January 2024, the company's order book stood at Rs 9,206.42 crore, with the National Highways Authority of India (NHAI) contributing 82% of the order book. Ceigall India's clientele includes public sector entities like Indian Railway Construction International Ltd, Military Engineer Services, and Bihar State Road Development Corporation Ltd.

Financial Performance

For the fiscal year 2022-23, the company's revenue from operations surged by 82% to Rs 2,068.17 crore from Rs 1,133.79 crore in the previous fiscal year. Profit after tax grew to Rs 167.27 crore in fiscal 2023 from Rs 125.86 crore in fiscal 2022.

IPO Details

ICICI Securities Ltd, IIFL Securities Ltd, and JM Financial Ltd are the book-running lead managers for the IPO. The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Ceigall India Ltd's IPO marks a significant step in the company's growth trajectory. With its strong order book, experienced management team, and diversified clientele, the company is well-positioned to capitalize on the growing infrastructure sector in India. The IPO proceeds will further strengthen Ceigall India's financial position and support its expansion plans.