Ceigall India IPO gets fully subscribed on the second day of offer

The initial public offer of infrastructure company Ceigall India got fully subscribed on the second day of subscription on Friday.

The Rs 1,252.66-cr initial share sale received bids for 2,74,18,073 shares against 2,23,13,663 shares on offer, as per the NSE data.

The category for non-institutional investors received 1.75 times subscription, while the retail individual investors portion got subscribed 1.65 times subscription.

The quota for qualified institutional buyers subscribed a mere 1 per cent.

Ceigall India on Wednesday said it has mobilised Rs 375 cr from anchor investors.

The initial public offering (IPO) has a price band of Rs 380-401 per share. The public issue will conclude on August 5.

The Ludhiana-based company's IPO is a combination of a fresh issue of Rs 684.25 cr and an Offer-For-Sale (OFS) of up to 1.42 cr equity shares worth Rs 568.41 cr, at the upper end of the price band, by the promoters, and an individual shareholder. This takes the total issue size to Rs 1,252.66 cr.

Promoters and promoter group entities -- 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 public issue.

Proceeds from the fresh issue will be used for the purchase of equipment, payment of debt and a portion will be used for general corporate purposes.

Founded in 2002, Ceigall India is an infrastructure construction company with experience in undertaking specialised structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways.

As of June 2024, the company's order book stood at Rs 9,470 cr. Its clientele includes public sector entities like Indian Railway Construction International Ltd, Military Engineer Services and Bihar State Road Development Corporation Ltd.

The company's revenue from operations surged 46.5 per cent to Rs 3,029.35 cr in fiscal 2024 from Rs 2,068.17 cr in fiscal 2023 and profit after tax grew to Rs 304.3 cr from Rs 167.27 cr.

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 NSE.