Ceigall India Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹401
Per ShareLot Size
37 Shares
Minimum Investment
₹14,837
Issue Size
₹1,252.66 Cr
Face Value
₹5
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Ceigall India Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
85.37%
Issue Type
Book Building
ISIN
INE0AG901020
About the Company
Ceigall India Limited is an infrastructure construction company, having completed over 34 projects across ten states in India with experience in undertaking specialized structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, metros, expressways and runways. Over the last two decades, the Company has transitioned from a small construction company to an established engineering, procurement and construction ("EPC") player, demonstrating expertise in the design and construction of various road and highway projects including specialized structures with over 20 years of experience in the industry. Our business model is broadly divided into EPC projects, Hybrid Annuity Model ("HAM") projects and O&M. Under EPC projects and O&M, the company recognises revenue based on percentage completion method or item rate basis, however, under HAM the company constructs the asset under public private partnership model wherein the authority initially provides part of funding for construction and remaining portion on completion of the project is by way of semiannual annuities spread across concession period, and after the concession period, asset is transferred back to the authority. The Company has completed over 34 projects, including 16 EPC, one HAM project, five O&M and 12 Item Rate Projects, in the roads and highways sector. Currently, the Company has 18 ongoing projects, including 13 EPC projects and five HAM projects.
Industry Overview
India stands out as the fastest-growing economy among the major economies with real gross domestic product of Rs. 160.06 trillion in Fiscal 2024 and estimated to emerge as the third-largest economy globally by 2027, infrastructure sector continues to play major role with 3.50% of gross domestic product contribution with Rs. 52,962.00 billion investments in Infrastructure industry between Fiscal 2024 to Fiscal 2028. Road construction is amongst the critical sub-segments for infrastructure development, economic growth, and employment creation. Key growth drivers for infrastructure sector are rapid urbanisation, higher budgetary outlay towards infrastructure, smart cities mission. The key challenges in the infrastructure sector are regulatory and policy risks, funding challenges, land acquisition and environmental clearances.
Company History
Ceigall India Limited was originally incorporated as "Ceigall Builders Private Limited" at Ludhiana, Punjab, India under the provisions of the Companies Act, 1956 pursuant to a certificate of incorporation dated July 8, 2002, as a private limited company issued by the Registrar of Companies, Punjab, Himachal Pradesh & Chandigarh at Chandigarh. Upon the conversion of the Company into a public limited company, pursuant to a board resolution dated January 28, 2011 and a shareholders' resolution dated January 29, 2011, the name of the Company was changed to "Ceigall India Limited" and a fresh certificate of incorporation dated February 9, 2011 was issued by the Registrar of Companies, Punjab, Himachal Pradesh & Chandigarh at Chandigarh.
Products & Services
- Ceigall India Limited is an infrastructure construction company
Growth Strategy
- Diversification by leveraging existing capabilities.
- Selectively expand its geographical footprint.
- Continue to explore hybrid annuity based model to optimize its project portfolio.
- Continue focusing on enhancing execution efficiency.
- Continue to grow and benefit from the robust future growth of India's economy and infrastructure.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 31,243,701 equity shares of face value of Rs. 5 each ("Equity Shares") of Ceigall India Limited (The "Company" or the "Issuer") for cash at a price of Rs. 401 per equity share including a securities premium of Rs. 396 per equity share (the "Offer Price") aggregating to Rs. 1252.66 crores (the "Offer"). The offer comprises a fresh issue of 17,068,861 equity shares by the company aggregating to Rs. 684.25 crores (the "Fresh Issue") and an offer for sale of 14,174,840 equity shares (the "Offered Shares") aggregating to Rs. 568.41 crores (the "Offer for Sale"), comprising 4,248,300 equity shares of face value of Rs. 5 each aggregating to Rs. 170.36 crores by Ramneek Sehgal, 7,536,050 equity shares of face value of Rs. 5 each aggregating to Rs. 302.20 crores by Ramneek Sehgal and Sons huf (together "Promoter Selling Shareholders"), 4,950 equity shares of face value of Rs. 5 each aggregating to Rs 0.20 crores by Avneet Luthra, 919,960 equity shares of face value of Rs. 5 each aggregating to Rs. 36.89 crores by Mohinder Pal Singh sehgal, 548,980 equity shares aggregating to Rs. 22.01 crores by Parmjit Sehgal, 914,950 equity shares of face value of Rs. 5 each aggregating to Rs. 36.69 crores by Simran Sehgal (collectively referred to as the "Promoter Group Selling Shareholders"), and 1,650 equity shares of face value of Rs. 5 each aggregating to Rs. 0.07 crores by Kanwaldeep Singh Luthra ("Individual Selling Shareholder" and together with the promoter selling shareholders and the promoter group selling shareholders referred to as the "Selling Shareholders"). The offer includes a reservation of 55,096* equity shares of face value of Rs. 5 each, aggregating to Rs. 2.00 crores (constituting 0.03% of the post offer paidup equity share capital of the company, for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute 17.94% and 17.90%, respectively, of the post-offer paid-up equity share capital of the company. The company may, in consultation with the book running lead managers ("brlms"), offer a discount of Rs. 38 on the offer price to eligible employees bidding in the employee reservation portion ("Employee Discount"). *Subject to finalization of basis of allotment.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- One of the fastest growing EPC companies with an experience in executing specialised structures.
- Healthy orderbook giving long term revenue visibility.
- Demonstrated project development, execution and operational capabilities.
- Efficient business model.
- Experienced management team.
- The company's business is primarily dependent on contracts awarded by governmental authorities. As on June 30, 2024, the NHAI projects awarded to it constituted 80.31% of its Order Book, while the remaining 19.69% of its Order Book was from contracts with other central, state governmental and local departments. Any adverse changes in the central, state or local government policies may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material affect on its business, profitability and results of operations.
- The company has sustained negative cash flows from operating activities in the past and may experience earnings declines or operating losses 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 or cost overruns or claims for damages, which could have an adverse effect on its cash flows, business, results of operations and financial condition.
- All projects the company operates have been awarded primarily through competitive bidding process. Its bids may not always be accepted. The company may not be able to qualify for, compete and win projects or identify and acquire new projects, which could adversely affect its business and results of operations.
- One of its Directors, Arun Goyal, was debarred from accessing the securities market in the past.