Employee Portion was the most subscribed with 5.47 times
MUMBAI, Aug 2 (The CONNECT) – Retail and NII segments, the Initial Public Offering of Ceigall India Limited was fully subscribed today, the second day of bidding led by.
The issue received bids of 2,74,17,222 shares against the offered 2,23,13,663 equity shares, at a price band of ₹380-401, according to the data available on the stock exchanges. Overall the issue was subscribed 1.23 times.
Employee Portion was the most subscribed with 5.47 times. Non-Institutional Investors Portion and Retail Portion were subscribed 1.75 times and 1.65 times respectively, whereas Qualified Institutional Buyer Portion was subscribed 0.01 times. The issue kicked off for subscription on Thursday, August 1, 2024, and will close on Monday, August 5, 2024.
A day before the opening of the issue, Ceigall India Ltd raised Rs 375.20 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were Nomura Funds Ireland Public Ltd – India Equity Fund, ICICI Prudential Flexicap Fund, HDFC Smallcap Fund, HDFC Trustee Company Ltd, Nippon Life India Smallcap Fund, Kotak Infrastructure & Economic Reform Fund, Axis Mutual Fund, Bandhan Infrastructure Fund, SBI General Insurance Company, Nataxis International Fund, Carmignac Portfolio, Goldman Sachs (Singapore) PTE- ODI, Tata Multicap Fund, Tata Dividend Yield Fund, ICICI Prudential Life Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd, Max Life Insurance Ltd, Edelweiss Trusteeship Co. Ltd. Bank of India Manufacturing & Infrastructure Fund, Universal Sompo General Insurance Company Ltd, Hero Venture Trust, Integrated Core Strategies(Asia) PTE., Ltd. Societe Generale, Morgan Stanley Asia (Singapore) PTE., Citigroup Global Markets Mauritius Pvt. Ltd..
Leading brokerage firms like Motilal Oswal, Deven Choksey Research, Nirmal Bang Securities, SBI Securities, BP Equities, Canara Bank Securities, Stoxbox, Indsec Securities, Arihant Capital, Reliance Securities and Swastika Investmart, have given a “Subscribe” rating to the issue highlighting the company’s rapid growth as an EPC company with a strong track record in road and highway projects across India. With a robust order book, efficient business model, and a strategic focus on infrastructure expansion, Ceigall is well-positioned to benefit from industry tailwinds and significant investments in the infrastructure sector. Despite challenges such as high debt levels, geographical concentration, and intense competition, the company’s consistent financial performance and competitive advantage in winning new projects make it a promising investment. It emphasizes its long-term growth potential while noting the need for a cautious approach due to certain risks.
ICICI Securities Limited, IIFL Securities Limited, and JM Financial Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
Company Information
Ceigall India is one of the fastest growing engineering, procurement and construction (“EPC”) company in terms of three-year revenue CAGR as of Fiscal 2024, among the companies with a turnover of over ₹ 10,000 million in Fiscal 2024 with over 20 years of experience in the industry. The Company has one of the highest year-on-year revenue growth of approximately 43.10% in Fiscal 2024 among its peers. The Company has grown at a CAGR of 50.13% between Fiscals 2022 to 2024. Over the last two decades, the Company has transitioned from a small construction company to an established EPC player, demonstrating expertise in the design and construction of various road and highway projects including specialised structures across 10 states in India, according to a CARE Report.
