Ceigall India Limited’s Initial Public Offering to open on Thursday, August 1, 2024, price band set at ₹380/- to ₹401/- per Equity Share

Mr. Ramneek Sehgal, MD and Mr. Bhagat Singh, Group CFO of Ceigall India Limited at their IPO announcement, Mumbai

Mumbai, July 29, 2024: Ceigall India Limited, 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, has fixed the price band of ₹380/- to ₹401/- per Equity Share of face value ₹5/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Thursday, August 1, 2024, for subscription and close on Monday, August 5, 2024. Investors can bid for a minimum of 37 Equity Shares and in multiples of 37 Equity Shares thereafter.

The IPO consists of fresh issue of up to Rs 6,842.52 million and an offer for sale (OFS) of up to 1,41,74,840 equity shares by Promoter Selling Shareholders and Individual Selling Shareholder.

The proceeds from the fresh issue, to the extent of Rs 997.89 million will be used for purchase of equipment; Rs 4,134 million for repayment/ prepayment, in full or in part, of certain borrowings availed by the Company and its Subsidiary, CIPPL; and General corporate purposes.

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.

The Ludhiana-based Company’s principal business operations are broadly divided into EPC projects and hybrid annuity model (“HAM”) projects, spread across over ten states in India. As on June 30, 2024, the Company’s Order Book was ₹ 94,708.42 million.

The Company has completed over 34 projects, including 16 EPC, one HAM, five O&M and 12 Item Rate Projects, in the roads and highways sector. Currently, it has 18 ongoing projects, including 13 EPC projects and five HAM projects which includes elevated corridors, bridges, flyovers, rail over-bridges, tunnels, expressway, runway, metro projects and multi-lane highways.

Ceigall India’s revenue from operations increased significantly by 46.48% from ₹ 20,681.68 million in the Fiscal 2023 to ₹ 30,293.52 million in the Fiscal 2024, primarily driven by increase in revenue from construction contracts, and revenue from sale of goods and materials and Finance income on financial assets carried on amortised cost, while the company recorded a significant increase in its profit for the year by ₹ 1,672.72 million in the Fiscal 2023 to ₹ 3,043.07 million in the Fiscal 2024.

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.

The Offer is being made through the Book Building Process, wherein not more than 50% of the net offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the net offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the net offer shall be available for allocation to Retail Individual Investors.

RHP: https://jmfl.com/Common/getFile/3702

Issue Size of the IPO based on the upper and lower end of the price band