Ceigall India Receives SEBI Approval for ₹600 Crore IPO

Punjab-based infrastructure and construction company Ceigall India Limited has obtained final approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

Scheduled to raise ₹617.69 crore through the fresh issue of 1.428 crore equity shares at a face value of ₹5 each, Ceigall India filed its draft prospectus with SEBI on March 3, 2024.

The IPO includes an offer for sale (OFS) from the company's promoters, group promoters, and individual shareholders, with shares also available for employee subscription.

Promoters like Ramneek Sehgal are offering up to 42.8 lakh shares, with others including Ramneek Sehgal and Sons HUF (75.9 lakh shares), Avneet Luthra (5,030 shares), Mohinder Pal Singh Sehgal (9.27 lakh shares), Parmjit Sehgal (5.53 lakh shares), Simran Sehgal (9.22 lakh shares), and Kanwaldeep Singh Luthra (1,677 shares).

Ceigall India specializes in infrastructure projects such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways.

The company might also explore a pre-IPO placement to raise ₹123.50 crore through private placements, preferential allotments, rights issues, or other methods, which could reduce the fresh issue size.

Funds from the IPO will be used to purchase equipment and repay or advance certain borrowings for the company and its subsidiaries. The offer will be made through a book-building process, with no more than 50% allocated to qualified institutional buyers (QIBs), at least 15% to non-institutional investors (NIIs), and at least 35% to retail investors.

ICICI Securities Limited, IIFL Securities Limited, and JM Financial Limited are the book runners for the IPO.

Ceigall India has completed over 34 projects, including 16 EPC and one HAM project, in the roads and highways sector, and has nearly 15 ongoing projects in its pipeline.

Ceigall India has done over 34 projects, including 16 EPC and one HAM project, in the roads and highways sector. It has nearly 15 ongoing projects in its pipeline, according to the company statement.

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