Ceigall India Files IPO Papers With SEBI; Eyes Rs 618 Crore Through Fresh Issue

Ceigall India contemplates raising Rs 123.50 crore in the pre-IPO placement round, which would result in a reduction of the fresh issue size if completed

Ludhiana-based infrastructure company Ceigall India has taken a significant step towards mobilising funds through an Initial Public Offering (IPO) by filing preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI). According to the draft red herring prospectus filed on Sunday, the IPO comprises a fresh issue of Rs 617.69 crore and an Offer For Sale (OFS) of up to 1.43 crore equity shares by the promoters, along with an individual selling shareholder.

Prominent among those divesting their stakes in the proposed public issue are the 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.

Furthermore, there's a provision for eligible employees to subscribe to a reserved portion of the offer.

The company contemplates raising Rs 123.50 crore in the pre-IPO placement round, which would result in a reduction of the fresh issue size if completed.

Proceeds from the fresh issue, amounting to Rs 118.78 crore, are earmarked for equipment purchases, Rs 344.50 crore for debt repayment, and a portion for general corporate purposes.

Established in 2002, Ceigall India specialises in infrastructure construction, particularly in specialised structural projects like elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways.

As of January 2024, the company's order book reached Rs 9,206.42 crore, with NHAI contributing a substantial 82 per cent share. Notable clients include Indian Railway Construction International Ltd, Military Engineer Services, and Bihar State Road Development Corporation Ltd.

In the fiscal year 2022-23, the company's revenue from operations soared by 82 per cent to Rs 2,068.17 crore from Rs 1,133.79 crore in the previous fiscal, with a corresponding increase in profit after tax to Rs 167.27 crore.

ICICI Securities Ltd, IIFL Securities Ltd, and JM Financial Ltd have been appointed as the book-running lead managers for the IPO. The equity shares are proposed to be listed on both the BSE and the National Stock Exchange (NSE).