Infrastructure company Ceigall India Ltd has successfully raised Rs 375 crore from anchor investors, just one day before its initial public offering (IPO) opens for public subscription.
Anchor Investors Involved
Prominent investors including ICICI Prudential Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, Bandhan Mutual Fund, ICICI Prudential Life Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd, and Max Life Insurance Ltd have participated as anchor investors. Additional investors such as Nomura, Integrated Core Strategies (Asia) PTE Ltd, Societe Generale, Morgan Stanley Asia (Singapore) PTE, and Citigroup Global Markets Mauritius have also been allocated shares.
Shares Allocation and IPO Details
According to the circular uploaded on BSE’s website, Ceigall India has allotted 93.56 lakh shares to 29 funds at Rs 401 per share, totaling Rs 375.2 crore. The IPO, with a price range of Rs 380 to Rs 401 per share, will be open for subscription from August 1 to August 5.
IPO Structure
The Ludhiana-based company’s IPO includes a fresh issue of shares worth Rs 684.25 crore and an Offer-For-Sale (OFS) of up to 1.42 crore equity shares valued at Rs 568.41 crore by the promoters and individual selling shareholders. This brings the total issue size to Rs 1,252.66 crore.
Promoters and Shareholders
Promoters and promoter group entities such as Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, Simran Sehgal, and individual shareholder Kanwaldeep Singh Luthra are reducing their stakes through this public issue.
The proceeds from the fresh issue will be utilized for purchasing equipment, repaying debt, and covering general corporate expenses.
About Ceigall India
Founded in 2002, Ceigall India is an infrastructure construction company specializing in structural projects like elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways. As of June 2024, the company’s order book stands at Rs 9,470 crore. Their clients include public sector entities like Indian Railway Construction International Ltd, Military Engineer Services, and Bihar State Road Development Corporation Ltd.
IPO Reservation and Bidding
Half of the IPO size is reserved for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors. Investors can bid for a minimum of 37 equity shares and in multiples thereof.
Financial Performance
In fiscal 2024, Ceigall India’s revenue from operations surged by 46.5% to Rs 3,029.35 crore, up from Rs 2,068.17 crore in fiscal 2023. The company’s profit after tax also grew to Rs 304.3 crore from Rs 167.27 crore.
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.
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