Ceigall India IPO: Rs 1,253 cr Issue Opens Aug 1, Price Band Rs 380-401

New Delhi, Jul 29 (PTI) Infrastructure company Ceigall India Ltd on Monday fixed a price band of Rs 380 to Rs 401 per share for its Rs 1,253 crore Initial Public Offering (IPO).

The initial share sale will open for public subscription on August 1 and conclude on August 5, the company announced.

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

At the upper end of the price band, the company's maiden public issue is pegged at Rs 1,252.66 crore.

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 crore. Its clientele includes public sector entities like Indian Railway Construction International Ltd, Military Engineer Services and Bihar State Road Development Corporation Ltd.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Further, investors can bid for a minimum of 37 equity shares and in multiples thereof.

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