The IPO has a face value of Rs 5 and consists of a fresh issue of Rs 617.69 crore and an offer for sale of up to 14.28 million equity shares
FinTech BizNews Service
Mumbai, July 08, 2024: Ceigall India Limited an infrastructure construction company with experience in undertaking
specialized structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels,
highways, expressways and runways, has received final observation from the capital markets
regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public
offering (IPO).
The Company had filed its IPO papers with Sebi on March 3, 2024.
The IPO has a face value of Rs 5 and consists of a fresh issue of Rs 617.69 crore and an offer for sale
of up to 14.28 million equity shares by the Promoter and Promoter Group Selling Shareholders and
Individual Selling Shareholder.
The offer for sale consists of the sale of equity shares of up to 4.28 million by Ramneek Sehgal, up to
7.59 million equity shares by Ramneek Sehgal and Sons HUF, up to 5,030 equity shares by Avneet
Luthra, up to 9.27 lakh equity shares by Mohinder Pal Singh Sehgal, up to 5.53 lakh equity shares by
Parmjit Sehgal, up to 9.22 lakh equity shares by Simran Sehgal and up to 1,677 equity shares by
Kanwaldeep Singh Luthra. The offer includes a reservation for subscription by eligible employees.
The company, in consultation with the book-running lead managers, may consider a further issue of
specified securities through a private placement, preferential allotment, rights issue or any other
method aggregating to Rs 123.50 crore as "Pre-IPO placement". If such placement is completed, the
fresh issue size will be reduced.
The Offer is being made through the book-building process, wherein not more than 50% of the offer
shall be available for allocation on a proportionate basis to qualified institutional buyers, not less
than 15% of the net offer shall be available for allocation to non-institutional investors, and not less
than 35% of the net offer shall be available for allocation to retail individual investors.
The proceeds from the fresh issue, to the extent of Rs 118.78 crore will be used for purchase of
equipment; Rs 344.50 crore for repayment/ prepayment, in full or in part, of certain borrowings
availed by the Company and its Subsidiary, CIPPL; and General corporate purposes.
Ceigall India Limited was established in July 2002 and over the past two decades has evolved from a
small construction firm to a prominent player in Engineering, Procurement, and Construction (EPC),
specializing in the design and development of various road and highway projects, as stated in a CARE
Report.
Ceigall has completed over 34 projects, including 16 EPC and one HAM project, in the roads and
highways sector. Currently, it is involved in 15 ongoing projects, comprising 11 EPC projects and four
HAM projects, encompassing elevated corridors, bridges, flyovers, rail overbridges, tunnels,
expressways, runways, and multi-lane highways. Notably, the company completed the Malout-
Abohar Project, its first HAM project, 214 days ahead of schedule.
ICICI Securities Limited, IIFL Securities Limited, and JM Financial Limited are the book-running lead
managers for the IPO, and Link Intime India Private Limited is the registrar of the offer. The equity
shares are proposed to be listed on the BSE and NSE.
