Ceigall India Limited

About Ceigall India Limited  Incorporated in 2002, Ceigall India Limited is one of the fastest-growing engineering, procurement, and construction (EPC) companies in India in terms of three-year revenue CAGR as of FY24. It undertakes the construction of specialised structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways.  Its principal business operations are broadly divided into EPC projects and hybrid annuity model (HAM) projects, in which the government pays a part of the total project. As of now, it has completed over 34 projects, including 16 EPC, one HAM, five O&M (operation and maintenance) and 12 Item Rate Projects, in the roads and highways sector. It also has 18 ongoing projects, of which 13 are EPC projects, and five are HAM projects.  As of 31 March 2024, it has constructed over 1,739 lanes km of roads and highways and has 1,488 lanes km of ongoing projects. Its current order book stands at ₹9,470 crore as of 30 June 2024, 80% of which are projects awarded by the NHAI.  Its projects are present across 10 states in India, including Punjab, Haryana, Rajasthan, Uttar Pradesh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Delhi, Maharashtra and Bihar. It has also been awarded the “Gold Award” at the National Highways Excellence Award, 2020 and the “Special Award” at the National Highways Excellence Awards, 2021.  Between FY22 and FY24, it saw a CAGR rise of over 38% in its revenue from operations and 34% in its profit. Moreover, the government has sustained its focus on infrastructure development in the union budget 2024-25, with capital expenditure estimates of ₹11,111 billion toward the infrastructure sector. This could be beneficial for the company.  And now, Ceigall India Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹1252.6 crore, comprising fresh issue, aggregating to ₹684.25 crore, as well as an offer for sale, aggregating to ₹568.41 crore. The money raised from the fresh issue will be utilised to purchase equipment, repay borrowings, and for general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Ceigall India IPO:     Company Name  Ceigall India Limited   Company Type  Private    Company Established On  2002   Ceigall India Limited IPO Opening Date  1st August 2024    Ceigall India Limited IPO Closing Date  5th August 2024   Ceigall India Limited IPO Allotment Status  6th August 2024    Credit of Shares to the Demat Account  7th August 2024   Ceigall India Limited IPO Listing Date  8th August 2024    Ceigall India Limited IPO Face Value  ₹ 5 per share   Ceigall India Limited IPO Lot Size  37 shares    Ceigall India Limited IPO Issue Size  Approx ₹ 1252.6 crore   Ceigall India Limited IPO to be Listed on  BSE, NSE    Ceigall India Limited IPO Price band  ₹ 380 – ₹ 401 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 1,133 crore  ₹ 2,068 crore  ₹ 3,029 crore    Net Profit  ₹ 125 crore  ₹ 167 crore  ₹ 304 crore              Here’s a quick look at Ceigall India Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   One of the fastest growing EPC companies with a turnover of over ₹1,000 crore in FY24 and a year-on-year revenue growth of ~43% in FY24.  It has a healthy order book and long-term revenue visibility, as it is now eligible to bid for single NHAI EPC projects up to a value of ₹5,700 crore and for single NHAI HAM projects up to a value of ₹5,500 crore.  The company has demonstrated project development capabilities, using its 20+ years of experience and expertise to execute projects across diverse geographic locations in India.  An efficient business model that includes technical surveys, feasibility studies, analysis of the technical and design parameters, and cost in the pre-bidding stage enables it to bid at competitive prices and win projects.  Has generated a RoCE of 29%, 28%, and 31% in FY22, FY23, and FY24, respectively.   Risks and threats   Primarily dependent on contracts awarded by government authorities accounting for 80% of its order book as of 30 June 2024.  Has consistently experienced negative cash flow from operating and investing activities in the last three fiscals.  Required to pay royalty charges for mining amassing to ₹36 crore in FY24.  Operations are subject to accidents and other risks, exposing it to material liabilities, loss in revenues and increased expenses.  High working capital requirements amounting to ₹530 crore in FY24, often before payments are received from customers.  Diversification beyond projects in the roads and highways sector may not be successful, which could affect its business and finances.  Faces competition from J. Kumar Infraprojects, ITD Cementation India, G R Infraprojects, H.G. Infra Engineering, KNR Constructions and PNC Infratech.  The business is subject to seasonal and other variations, and an inability to accurately forecast its project schedule could adversely affect its operations.            Ceigall India Limited IPO details  | Ceigall India Limited IPO date  According to the offer document filed by the company with the SEBI, the Ceigall India IPO’s opening date – in other words, the Ceigall India IPO launch date – will be 1st August 2024. The Ceigall India IPO closing date is 5th August 2024. After this, investors will be updated about the allotment status on 6th August 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 7th August 2024. The Ceigall India IPO listing date is 8th August 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Ceigall India Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Ceigall India IPO price band has been set between ₹380 and ₹401 per share. Interested investors can choose a price within this band to apply for the IPO.  The Ceigall India IPO listing price will be determined on 8th August 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Ceigall India Limited IPO Lot size  The Ceigall India IPO details have been declared. The Ceigall India IPO lot size is set at 37 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Ceigall India IPO issue size is approx ₹684 crore.           How to pre-apply for the Ceigall India Limited IPO?  You can pre-apply for the Ceigall India Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Ceigall India Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Ceigall India Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Ceigall India Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Ceigall India Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Ceigall India Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Ceigall India Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Ceigall India Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Ceigall India Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Ceigall India Limited IPO  To apply for the Ceigall India Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Ceigall India Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Ceigall India Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.