Ceigall India IPO: Price Band Fixed At Rs 380–401 Per Share
Ceigall will use proceeds from the fresh issue for purchase of equipment and repaying debt.
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The initial public offering of Ceigall India Ltd. will open this week with a price band of Rs 380–401 per share.
The public issue consists of a fresh issue of shares worth Rs 684.5 crore and an offer-for-sale component consisting of 1.41 crore shares, according to the red herring prospectus.
The minimum lot size for bidding will be 37 shares, with further bids to be made in multiples. The issue will open for subscription on Aug. 1 and close on Aug. 5. The bidding for the anchor portion will open for a day on July 31, according to the prospectus.
Ramneek Sehgal, Ramneek Sehgal Sons HUF and other promoter groups will be the selling shareholders of the company.
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 BSE and the National Stock Exchange.
The infrastructure company filed preliminary papers with the capital markets regulator in March.
Proceeds from the fresh issue to the tune of Rs 118.8 crore will be used for the purchase of equipment and Rs 344.5 crore for the payment of debt; besides, a portion will be used for general corporate purposes.
"Out of this total standalone debt of Rs 1,259 crore, the company will be repaying Rs 413 crore of debt, which comprises Rs 150 crore short-term debt and the pending long-term debt," Bhagat Singh, group chief financial officer of Ceigall, told NDTV Profit. "The resultant of the repayment would be the saving of the interest cost and the long-term repayment amount."
Ceigall is an infrastructure construction company with experience in undertaking specialised structural work, such as elevated roads, flyovers, bridges, railway overbridges, tunnels, highways, expressways and runways.
Managing Director Ramneek Sehgal said the company was not just expanding geographically but also vertically. He said solar had also been added to Ceigall's portfolio with three projects at different sites.
As of January 2024, the company's order book stood at Rs 9,206.4 crore, with the National Highways Authority of India contributing 82% of the order book. Its clientele includes public sector entities like Indian Railway Construction International Ltd., Military Engineer Services and Bihar State Road Development Corp.
