Ceigall India board approves C&C Construction merger to boost infra play

Ceigall India on Monday said its board has approved the merger of wholly-owned subsidiary Ceigall Infra Projects with publicly listed C&C Construction to enhance business efficiency.

Ceigall India, an infrastructure construction firm, in a statement said post the merger, Ceigall India will hold up to 95 per cent of the merged entity, with plans to reduce its stake to 75 per cent in line with Sebi regulations.

The proposed merger, subject to approval by the National Company Law Tribunal (NCLT), aims to revive C&C Construction, which was earlier under liquidation.

The merger also aims to integrate C&C Construction's capabilities in transmission, distribution, railways, bridges, and building construction into Ceigall's broader infrastructure portfolio, it added.

 

The merger will result in administrative and operational rationalization, enhance business efficiency, flexibility, and agility, positioning the transferee company for sustainable growth," Ceigall India said in a BSE filing.

According to the filing, while Ceigall India is well capitalised, the proposed merger will allow Ceigall Infra to garner more equity from the investors, which will enable the parent company to not only meet existing equity commitment but also provide equity for future HAM projects.

The acquisition of a listed company is also expected to improve Ceigall Infra's visibility and attract more institutional interest, it added.

Ceigall Infra has a turnover of approximately Rs 115 crore and a net worth of Rs 64 crore.