Ceigall India IPO details: Price, date, GMP, and more

India’s infrastructure market is expected to develop rapidly, with $1.4 trillion in investments anticipated by 2025. Amidst this scenario, Ceigall India Limited is making news with its upcoming Initial Public Offering (IPO).

As a civil engineering powerhouse based in Ludhiana, India, Ceigall has been transforming the landscape of structural projects since 2002. With a strong track record of constructing flyovers, roads, highways, tunnels, and runways, the company is now about to enter the public market. 

As the IPO window opens from August 1 to August 5, 2024, interested investors need to carefully weigh the strengths and weaknesses of the company. Let’s begin!

About Ceigall India Limited

Ceigall India Limited, a civil engineering company in Ludhiana, India, operates as an infrastructure construction organisation that specialises in structural work including flyovers, roads, highways, and more. The company primarily operates on EPC projects and HAM (hybrid annuity model) projects. In the road and highways sector, Ceigall India has completed over 34 projects so far, including 16 EPC, 1 HAM, 5 O&M, and 12 item rate projects.

Sixteen EPC projects and five HAM projects, comprising elevated corridors, bridges, flyovers, rail over-bridges, tunnels, motorways, runways, metro projects, and multi-lane roads, are among the eighteen running projects that the company is currently working on as of 2024. 

In addition to specialised buildings such as elevated roads, flyovers, bridges, railroad overpasses, tunnels, highways, motorways, and runways, as of March 31, 2024, they had built over 1,739.88 kilometres of roads and highways. Their active projects total 1,488.17 kilometres as of March 31, 2024. 2,158.72 km of O&M work were finished as of March 31, 2024.

The company may take part in forthcoming tenders with the Delhi Metro Rail Corporation Limited, which will involve the construction of railways, mega bridges, and tunnels in India and overseas. Ceigall will also be involved in public-sector undertakings for the construction of highways, bridges, and tunnels in the northeastern states of India. 

Ceigall India IPO details

The Ceigall India IPO is being offered as a book-built issue of ₹1,252.66 crore, consisting of a 568.41 crore offer for sale and a 1.71 crore fresh issue. According to Business Standard, the Ceigall India IPO GMP is ₹140 as of July 29, 2024. 

IPO Date	August 1 to August 5, 2024
Face Value	₹5 per share
Price Band	₹380 to ₹401 per share
Lot Size	37 Shares
Total Issue Size	Up to ₹1,252.66 Cr
Fresh Issue	Up to ₹684.25 Cr
Offer for Sale	Up to ₹568.41 Cr
Employee Discount	₹38 per share

For more information, refer to the Ceigall India Red Herring Prospectus. 

Ceigall India Ltd. Financials

Ceigall India has reported a staggering YoY revenue growth of around 43.10% in FY2024, which is among the leading ones in the industry. From FY21 to FY24, the company has expanded at a CAGR of 50.13%. Ceigall India has transitioned from a small company to a leading EPC player, showcasing its excellence in design and construction across India.  

Below is a snapshot of Ceigall India’s financial performance over the last three financial years.

Consolidated results	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (₹ cr.)	2,592.19	1,827.82	959.14
Revenue (₹ cr.)	3,066.19	2,087.04	1,146.50
Profit After Tax (₹ cr.)	304.91	167.70	126.43
Net Worth (₹ cr.)	906.41	593.06	431.25
Total Borrowing (₹ cr.)	1,811.02	1,252.58	652.12

Ceigall India Limited IPO objectives

The offer includes the offer for sale as well as the fresh issue. It is noteworthy that the corporation will not receive any financial benefits from the sale offer. The following uses are on the company’s agenda for the net funds from the fresh issue as per the Red Herring Prospectus:

• Purchasing equipment
• Full or partial repayment of some loans that the business and its subsidiary took out
• General company objectives

Should you apply for Ceigall India Limited IPO?

Strengths:

• Strong growth: CIL has shown rapid growth, with a 50.13% CAGR between fiscal years 2021 and 2024 and a 43.10% year-on-year revenue growth in FY2024.
• Established player: Over 20 years of experience in the industry, transitioning from a small construction company to an established EPC player.
• Diverse project portfolio: The company has experience in various infrastructure projects, including roads, highways, bridges, tunnels, and runways across 10 states in India.
• Robust order book: As of March 31, 2024, CIL had an order book worth more than ₹9470 crore. The company has shown strong growth and has a robust order book, suggesting potential for long-term growth.
• Partnerships: Ceigall India has become a preferred partner for NHAI projects and recently partnered with Delhi Metro for rail infrastructure developments.

Weaknesses:

• Aggressive pricing: With a P/E ratio of 22.95, the IPO looks to be aggressively priced in relation to FY24 results.
• Competitive industry: CIL operates in a highly competitive and fragmented segment.
• Short-term financial volatility: PAT margins have fluctuated over the past three fiscal years (11.10% in FY22, 8.09% in FY23, and 10.05% in FY24).

Apply for Ceigall India IPO here

If you have a high-risk tolerance and are looking for long-term growth in the infrastructure sector, you might consider applying for a moderate amount.

Read disclaimer

Dhanush offers a streamlined application process and access to expert insights, potentially making it an advantageous choice for participating in this public offering. As always, it’s crucial to conduct thorough research and consider your individual financial goals before making any investment decisions.