Market News
2 min read | Updated on July 29, 2024, 14:05 IST
SUMMARY
Ceigall's IPO comprises a fresh issue of ₹684.25 crore, and offer for sale (OFS) component of 1.41 crore shares. The company could fetch a maximum of ₹568.41 crore through the OFS, at the upper end of the price band.
Investors can apply for the IPO by submitting bids for a minimum of 37 shares, and in its multiples after that.
Infrastructure developer Ceigall India will launch its initial public offering (IPO) on Thursday, August 1, with the aim to raise up to ₹1,252 crore.
The three-day subscription window will open on Thursday, with the final date to apply being Monday, August 5. The price band has been fixed in the range of ₹381-401 per share.
Ceigall's IPO comprises a fresh issue of ₹684.25 crore, and an offer for sale (OFS) component of 1.41 crore shares. The company could fetch a maximum of ₹568.41 crore through the OFS, at the upper end of the price band.
This takes the overall issue size to ₹1,252.6 crore. Ahead of the initial share sale, the company would also be raising funds through an anchor round on July 31, as per the pre-IPO documents.
During the subscription period, investors can apply for the IPO by submitting bids for a minimum of 37 shares, and in its multiples after that.
ICICI Securities, IIFL Securities and JM Financial are the book-running lead managers of the issue.
From the fresh issue, around ₹118.7 crore worth of proceeds is intended to be used for equipment purchase. Another ₹344.5 crore will used towards debt payment, and general corporate expenditure.
Meanwhile, the proceeds from the offer for sale will be used to pay the selling shareholders of the firm.
Established in 2002, Ceigall India is an infrastructure construction firm with experience in undertaking specialised structural work such as elevated roads, bridges, railway over bridges, flyovers, highways, tunnels, expressways and runways.
As of January 2024, the company's order book stood at ₹9,206.4 crore, with NHAI contributing 82% of the order book.
In the fiscal year ended March 31, 2023, Ceigall reported a net profit of ₹167.3 crore, higher as compared to ₹125.9 crore in the preceding financial year.
The company's revenue from operations in FY23 jumped 82% to ₹2,068.2 crore, as compared to ₹1,133.9 crore in FY22.
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