Ceigall India Limited gets Sebi nod for IPO

Mumbai, 09th July 2024 (GNI): 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.ends GNI