Ceigall India Ltd. plans to raise up to Rs 1,252.66 crore through an initial public offering set to open on Aug. 1. It is a combination of fresh issue of 1.71 crore shares aggregating to Rs 684.25 crore and an offer-for-sale of 1.42 crore shares aggregating to Rs 568.41 crore.
The company has set a price band of Rs 380-401 per share, with a face value of Rs 5 each, for the issue that closes on Aug. 5.
Issue Details
Issue opens: Aug. 1
Issue closes: Aug. 5
Issue price: Rs 380 to Rs 401 per share.
Total issue size: Rs 1,252.66 crore.
Bid lot: 37 shares
Listing: BSE and NSE.
Use Of Fresh Issue Proceeds
Purchase of equipment
Repayment or prepayment, in full or in part, of certain borrowings availed by the company and its subsidiary, Ceigall Infra Projects Pvt.
Business
Ceigall India is an infrastructure construction company undertaking specialised work such as structural projects, including elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways.
The company has completed over 34 projects, including 16 EPC, one HAM, five O&M and 12 item rate projects in the roads and highways sector.
Ceigall has 18 ongoing projects, including 13 EPC projects and five HAM projects. This includes elevated corridors, bridges, flyovers, rail over-bridges, tunnels, expressway, runway, metro projects and multi-lane highways.
As of June 2024, the company's order book amounted to Rs 9,470.8 crore. Projects awarded by NHAI contributed 80.31% to its order book.
Financials
Key Risks
The business is primarily dependent on contracts awarded by governmental authorities. As on June 30, 2024, the NHAI projects awarded to constituted 80.31% of its order book.
The company has sustained negative cash flows from operating activities in the past and may experience earnings declines or negative cash flows from operating activities in the future.
Delays in the completion of construction of ongoing projects could lead to termination of its contracts
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