Schedule of Ceigall India
| Issue open date | 01 Aug 2024 |
| Issue close date | 05 Aug 2024 |
| UPI mandate deadline | 05 Aug 2024 (5 PM) |
| Allotment finalization | 06 Aug 2024 |
| Refund initiation | 07 Aug 2024 |
| Share credit | 07 Aug 2024 |
| Listing date | 08 Aug 2024 |
| Mandate end date | 20 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 06 Sep 2024 |
| Lock-in end date for anchor investors (remaining) | 05 Nov 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Ceigall India
Ceigall India Limited, an infrastructure construction company founded in July 2002, is set to launch its IPO on August 1, 2024, with subscriptions closing on August 5, 2024. Specializing in projects like elevated roads, flyovers, bridges, tunnels, highways, and runways, Ceigall has over 20 years of experience in engineering, procurement, and construction (EPC).
The company’s operations are divided into EPC projects and hybrid annuity model (HAM) projects. Ceigall has completed over 34 projects, including 12 item rate projects, 1 HAM, 5 O&M (Operation and Maintenance), and 16 EPC projects. Currently, they are working on 18 projects across various Indian states.
Notable recent projects include the widening of a road in Punjab, the Kartarpur-Sahib Project, and the Delhi-Saharanpur Project. Ceigall has received accolades such as the “Gold Award” at the National Highways Excellence Awards 2020 and the “Special Award” in 2021.
Financials of Ceigall India
Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹1252.66 crores |
| Fresh issue | ₹684.25 crores |
| Offer for sale | ₹568.41 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Purchase of Equipment | 99.79 (14.58%) |
| Repayment of Borrowings | 413.40 (60.41%) |
| General corporate purposes | 171.06 (24.99%) |
*All figures except EPS are in ₹ crores
Strengths
- Rapid growth and specialized expertise: The company is one of the fastest-growing EPC companies, achieving significant revenue growth over the past three fiscal years. The company has extensive experience in executing specialized structures, including elevated roads, tunnels, and highways.
- Diverse and robust order book: The company maintains a substantial order book, primarily consisting of projects awarded by NHAI. This provides long-term revenue visibility and is an indicator of future performance, ensuring a steady flow of projects.
- Proven project execution capabilities: The company has proven its capacity to take on complex infrastructure projects throughout diverse regions in India, including high-density areas and hard terrain, with over 34 finished projects and 18 ongoing ones.
Risks
- Dependence on government contracts: As of June 30, 2024, 80.31% of the order book consists of NHAI projects. Adverse changes in government policies could lead to the foreclosure, termination, restructuring, or renegotiation of contracts, affecting business and profitability.
- Project delays: Delays in completing ongoing projects could lead to contract termination, cost overruns, or damage claims, negatively impacting cash flows, business operations, and financial condition.
- Royalty charges for mining: Adverse changes in contract terms or government policies regarding mining royalties could increase project costs and reduce profitability.
- Competitive bidding risks: Projects are primarily awarded through competitive bidding. Failure to qualify, compete, or win new projects could adversely affect business and operations.