Ceigall India Limited is coming up with an IPO worth INR 1,252.66 crores, consisting of a fresh issue of shares worth INR 684.25 crores and an offer to sell 1.42 crore shares worth INR 568.41 crores. The company aims to purchase equipment, repay borrowings, and cover general corporate purposes.
Ceigall India IPO – Important Dates
| Ceigall India Limited IPO Date | August 1, 2024 to August 5, 2024 |
| Ceigall India Limited IPO Listing Date | August 8, 2024 |
| Ceigall India Limited IPO Price | INR 380-401 per share |
| Ceigall India Limited IPO Lot Size | 37 Shares |
| Ceigall India Limited IPO Total Issue Size | INR 1,252.66 crores |
| Ceigall India Limited IPO Basis of Allotment | August 6, 2024 |
| Ceigall India Limited IPO Initiation of Refunds | August 7, 2024 |
| Ceigall India Limited IPO Credit of Shares to Demat | August 7, 2024 |
| Ceigall India Limited IPO Issue Type | Book Built Issue IPO |
| Ceigall India Limited IPO Listing At | BSE, NSE |
Ceigall India Limited IPO – Company Profile
Ceigall India Limited is a leading EPC company specializing in elevated roads, bridges, and tunnels. With over 20 years in the industry, it has achieved a 50.13% CAGR and operates across ten Indian states.
With over 34 completed projects and 18 ongoing, including EPC and HAM, the firm handles elevated corridors, bridges, flyovers, and more. It also undertakes independent O&M and sub-contracting projects as part of its operations.
Known for delivering quality projects, the company consistently completes projects on or before schedule. Out of 16 EPC projects, seven were finished early, receiving bonuses for three, including completing the Malout-Abohar Project 214 days early.
Ceigall India Ltd IPO Fundamental Analysis
Ceigall India Limited Limited’s financial analysis reveals a mixed performance. Revenue shows consistent growth, while the debt-equity ratio has decreased. Profitability is a concern, but EPS and RoNW improvements reflect higher earnings. Inventory turnover suggests potential sales or management issues.
- Revenue Trend: The revenue increased from ₹11,337.88 million in March 2022 to ₹20,681.68 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 30,293.52 million.
- Equity and Liabilities: Both equity and liability has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has decreased from ₹1,264.34 million in March 2022 to ₹3,049.09 million by March 2024. The decline in profitability could be a source of concern for investors.
- Earnings per Share (EPS): The diluted EPS has increased from ₹8.01 in March 2022 to ₹19.37 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 29.19% to 33.57%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Ceigall India IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 11,337.88 | 20,681.68 | 30,293.52 |
| Equity (₹ in Million) | 4,312.51 | 5,930.62 | 9,064.13 |
| Expenses (₹ in Million) | 9,770.32 | 18,618.50 | 26,608.34 |
| Profit and Loss After Tax (₹ in Million) | 1,264.34 | 1,677.04 | 3,049.09 |
| RoNW (%) | 29.19 | 28.20 | 33.57 |
| NAV per Equity Share (₹) | 54.89 | 75.48 | 57.68 |
| Diluted EPS only (₹) | 8.01 | 10.65 | 19.37 |
| Total Assets (in millions) | 9,591.39 | 18,278.22 | 25,921.94 |
| Total Liabilities (in millions) | 5,278.88 | 12,347.6 | 16,857.81 |
| Debt Equity Ratio | 0.73 | 1.18 | 1.17 |
| Current Ratio (in time) | 1.88 | 1.47 | 1.52 |
| Inventory Turnover Ratio | 26.04 | 23.02 | 20.88 |
Ceigall India Ltd IPO Peer Comparison
Ceigall India Limited shows substantial revenue and EPS growth, with a solid RoNW. PNC Infratech, G R Infraprojects, and other companies exhibit varying performance metrics, reflecting differences in profitability, return ratios, and inventory turnover.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Ceigall India Limited | 30,293.52 | 5 | NA | 19.37 | 19.37 | 33.57 | 57.68 |
| PNC Infratech Limited | 86,498.68 | 2 | 14.75 | 35.45 | 35.45 | 17.54 | 202.11 |
| G R Infraprojects Limited | 89,801.50 | 5 | 12.60 | 136.90 | 136.87 | 17.40 | 786.27 |
| H.G. Infra Engineering Limited | 53,784.79 | 10 | 20.43 | 82.64 | 82.64 | 21.94 | 376.71 |
| KNR Constructions Limited | 44,294.86 | 2 | 13.17 | 27.64 | 27.64 | 21.51 | 124.37 |
| ITD Cementation India Limited | 77,178.73 | 1 | 29.39 | 15.93 | 15.93 | 18.30 | 87.21 |
| J Kumar Infraprojects Limited | 48,792.05 | 5 | 19.68 | 43.71 | 43.71 | 12.51 | 349.44 |
Ceigall India Ltd IPO Objective
The main objective of Ceigall India Limited is to purchase equipment and repay or prepay borrowings of the company and its subsidiary, Ceigall Infra Projects Private Limited.
- Purchase of equipment: The company intends to use INR 99.79 crores of the Net Proceeds to purchase equipment, with the exact types and quantities to be determined based on current business requirements and future needs.
- Repayment/ prepayment, in full or in part, of certain borrowings availed by (i) their company and (ii) their Subsidiary, Ceigall Infra Projects Private Limited: The company plans to utilize INR 38.46 crores for repayment/prepayment of its own borrowings and INR 2.88 crores for its subsidiary, CIPPL. This will reduce debt, improve financial ratios, and support future growth.
- General corporate purposes: The company plans to use the net proceeds for general corporate purposes, including funding growth opportunities, bidding for projects/assets, business development initiatives, meeting contingencies, and other relevant purposes.
Ceigall India IPO Risks And Challenges
Ceigall India Limited’s risk includes a heavy reliance on government contracts, which exposes the company to potential impacts from policy changes, delays, or terminations. Additionally, competitive bidding uncertainties and project delays could adversely affect business and financial stability.
- The business relies heavily on government contracts, especially with NHAI, which contribute to high revenue concentration. Changes in government policies, contract terms, or project delays could adversely affect operations, financial stability, and future opportunities.
- Delays in completing ongoing construction projects may lead to contract terminations, cost overruns, or claims for damages. Such issues could adversely affect cash flows, business operations, and financial condition, potentially impacting overall performance and profitability.
- Competitive bidding determines project awards, and their bids are not guaranteed to be accepted. Failure to qualify, compete, or secure new projects could negatively impact their business, results of operations, and overall performance.
Ceigall India Ltd IPO – Industry & Market Potential
India’s infrastructure sector contributes 3% to GDP, with investments of ₹52,962 billion projected between FY24 and FY28. Government focus on transportation, energy, and smart cities, alongside policy reforms, supports significant infrastructure growth amid high investment ratios.
As the fourth-largest railway system globally, Indian Railways covers 68,043 km and 7,308 stations. Recent advancements include high-speed trains, extensive network expansion, plans for 17,000 km of new lines, and a net zero carbon goal by FY30.
Aviation sector capex is driven by government efforts to enhance regional connectivity, expand cargo facilities, and adopt eco-friendly technologies. Significant investments of over Rs. 250 billion focus on expanding major airports and developing 100 new ones under RCS-UDAN.
Ceigall India Limited IPO – Type of Offer
Ceigall India Limited plans a fresh issue of shares, seeking INR 684.25 crores to purchase equipment, repay borrowings, and cover general corporate purposes. Additionally, the company proposes an offer for sale, intending to sell 568.41 crore existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 684.25 crores. The company intends to utilize the proceeds from the fresh issue for the purchase equipment, repay borrowings, and cover general corporate purposes.
- Offer for sale: Ceigall India Limited is offering to sell 568.41crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Ramneek Sehgal | 4,248,300 |
| Ramneek Sehgal and SonsHUF | 7,536,050 |
| Avneet Luthra | 4,950 |
| Mohinder Pal Singh Sehgal | 919,960 |
| Parmjit Sehgal | 548,980 |
| Simran Sehgal | 914,950 |
Ceigall India IPO Offer Size
The offer size of Ceigall India Limited is INR 1,252.66 crores, consisting of a fresh issue of shares worth INR 684.25 crores and an offer to sell 1.42 crore shares worth INR 568.41 crores. The company seeks funds to purchase equipment, repay borrowings, and cover general corporate purposes.
Ceigall India Ltd IPO Allotment Structure
Ceigall India Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs
How to apply for the Ceigall India IPO?
To apply for the Ceigall India IPO through Alice Blue, you would typically follow these steps:
1.Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Ceigall India IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Ceigall India Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Ceigall India IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Ceigall India IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Ceigall India IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Ceigall India IPO:
Registrar’s Website: Visit the website of Link In Time India Private Limited, the registrar of the Ceigall India IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) official websites. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Ceigall India Ltd IPO Offer Registrar
The registrar for the Ceigall India IPO is Link In Time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083, Maharashtra, India
Tel: +91 810 811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Ceigall India Limited IPO FAQs
1. What is the allotment date of the Ceigall India IPO?
The allotment date of the Ceigall India is August 6, 2024.
2. What is the price band of the Ceigall India IPO?
The price band of the issue is INR 380-401 per share.
3. What is the size of the Ceigall India IPO?
The offer size of Ceigall India Limited is INR 1,252.66 crores, consisting of a fresh issue of shares worth INR 684.25 crores and an offer to sell 1.42 crore shares worth INR 568.41 crores. The company seeks funds to purchase equipment, repay borrowings, and cover general corporate purposes.
4.What is the listing date of the Ceigall India IPO?
The listing date of Ceigall India is August 8, 2024.
