Ceigall India shares rally 6% as firm's unit secures ₹981 crore order from NHAI; here are the details

On Tuesday, the company said its subsidiary, Ceigall Ludhiana Bathinda Greenfield Highway, executed the concession agreement with the National Highways Authority of India (NHAI) on December 24, 2024.

The project is the development of the 6-lane access-controlled Ludhiana-Bathinda Greenfield highway section of NH-754AD from the junction with Moga-Barnala Road (NH-703) to the junction with the Delhi-Katra Expressway (NE-5) near Ludhiana as a part of the Ludhiana-Ajmer Economic Corridor in Punjab on the Hybrid Annuity Mode under the Bharatmala Pariyojna Phase-I (Package-2).

The cost of the bid project is ₹981 crore.

Shares of infrastructure company Ceigall India were listed with a premium of nearly 4.50% against the issue price of ₹401 in August 2024.

The stock started the trade at ₹413, reflecting a gain of 2.99% from the issue price on the BSE. Later it jumped 5.98% to ₹425.

On the NSE, it listed at ₹419, up 4.48%.

The initial public offering (IPO) of Ceigall India was subscribed 13.75 times on the last day of the share sale.

The ₹1,252.66 crore initial share sale was a combination of a fresh issue of ₹684.25 crore and an offer-for-sale (OFS) of up to 1.42 crore equity shares worth ₹568.41 crore, at the upper end of the price band, by the promoters, and an individual shareholder.

The price range for the offer was ₹380-₹401 per share.

"Proceeds from the fresh issue will be used for the purchase of equipment, and payment of debt, and a portion will be used for general corporate purposes," the company had said.

Its clientele includes public sector entities like Indian Railway Construction International Ltd, Military Engineer Services, and Bihar State Road Development Corporation Ltd.