CEIGALL INDIA LIMITED – About the Company
CEIGALL INDIA LIMITED, established in July 2002 is India's leading infrastructure construction company that is skilled in specialized structural projects such as elevated roadways, flyovers, bridges, railway overbridges, tunnels, highways, expressways, and runways. The main business activities are categorized into EPC projects and hybrid annuity model (HAM) projects, which are scattered across states in India.
As of January 31, 2024, the company had completed more than 34 road and highway projects, including 16 EPC and one HAM. There are currently 15 active projects, comprising 11 EPC and four HAM initiatives. In addition, the company has carried out operation and maintenance (O&M) operations in compliance with contractual responsibilities under the EPC/HAM concession agreements, as well as independent O&M projects and subcontracting.
CEIGALL INDIA LIMITED IPO Objectives
CEIGALL INDIA LIMITED IPO consists of fresh issue and an offer for sale by its existing shareholders, which have been described below.
- The OFS comprises up to 14,285,714 equity shares, aggregating up to Rs. [●] million.
- The fresh issue comprises up to 17,063,640 equity shares aggregating up to Rs. ₹684.25 Cr. Out of the total fresh issue, (i) funding for purchase of new equipment will cost an estimated Rs. Rs 118.7 cr, (ii) repayment of certain borrowings will cost around Rs 344.5 cr; and the rest of the amount will be used for general corporate purposes.
| Particulars | Amount to be funded from Net Proceeds^ | Amount to be deployed from the Net Proceeds in Fiscal 2025 | Amount to be deployed from the Net Proceeds in Fiscal 2026 |
| Purchase of equipment | Rs. 1187.76 | Rs.593.88 | Rs. 593.88 |
| Repayment/ prepayment, in full or in part, of certain and our Subsidiary, CIPPL borrowings availed by our Company | Rs. 3445 | Rs. 3445 | - |
| General corporate purposes* | [●] | [●] | [●] |
| Total Proceeds | [●] | [●] | [●] |
CEIGALL INDIA LIMITED IPO Details:
| IPO Open Date | August 1, 2024 |
| IPO Close Date | August 5, 2024 |
| Basis of Allotment | August 6, 2024 |
| Listing Date | August 8, 2024 |
| Face Value | ₹5 per share |
| Price | ₹380 to ₹401 per share |
| Lot Size | 37 Shares |
| Total Issue Size | 31,238,480 shares |
| (aggregating up to ₹1,252.66 Cr) | |
| Fresh Issue | 17,063,640 shares |
| (aggregating up to ₹684.25 Cr) | |
| Offer For Sale | 14,174,840 shares of ₹5 |
| (aggregating up to ₹568.41 Cr) | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
CEIGALL INDIA LIMITED IPO Issue Price & Size
The issue price of the CEIGALL INDIA LIMITED IPO is between the price ranges of Rs. 380 and Rs. 401. Investors looking to bid can apply for the CEIGALL INDIA LIMITED IPO between these price bands. The total issue size of the CEIGALL INDIA LIMITED IPO is Rs. 1252.66 crores. CEIGALL INDIA IPO issue is a combination of an offer-for-sale (OFS) by selling prompters aggregating to of 14, 174, 840 equity shares and a fresh issue of Rs 684.25 crores.
CEIGALL INDIA LIMITED IPO Launch Date
CEIGALL INDIA IPO will be open on August 01, 2024 and close on the August 05, 2024. All types of investors can bid of this IPO between these dates through their eligible categories.
CEIGALL INDIA LIMITED Financial Statements:
| Particulars | For 9M ended Dec 31, 2023 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 |
| Revenue from operations | 20857.62 | 20681.68 | 11337.88 | 8732.02 |
| Rev. from operations as a % of total income | 98.64% | 99.10% | 98.89% | 98.69% |
| Cost of Materials Consumed | 7308.37 | 6870.93 | 4114.5 | 3415.5 |
| Cost of Construction | 8782.27 | 9873.78 | 4598.65 | 3343.94 |
| Employee Benefits Expenses | 451.44 | 296.27 | 252.86 | 142.65 |
| Finance Cost | 682.87 | 517.11 | 105.47 | 65.35 |
| Depreciation and Amortization Expenses | 390.37 | 376 | 186.12 | 135.1 |
| Other Expenses | 781.6 | 768.4 | 512.72 | 241.19 |
| Total Expenses | 18396.91 | 18618.5 | 9770.32 | 7335.15 |
| Profit from Continued Operations | 1962.04 | 1672.72 | 1258.61 | 1125 |
| Basic EPS | 12.49 | 10.65 | 8.01 | 7.16 |
| Diluted EPS | 12.49 | 10.65 | 8.01 | 7.16 |
| Key Metrics (in Rs. million) | ||||
| Order book | 117166.7 | 108090.43 | 63461.3 | 19808.4 |
| HAM Order Book | 56536.1 | 61818.9 | 27118.7 | 11650 |
| Third Party Order Book | 60630.6 | 46271.53 | 36342.6 | 8158.4 |
| Revenue from operations | 20857.62 | 20681.68 | 11337.88 | 8732.02 |
| Book to Bill Ratio (x) | 5.62 | 5.23 | 5.6 | 2.27 |
| EBITDA(5) | 3533.94 | 2956.27 | 1859.15 | 1597.33 |
| EBITDA Margin (%) | 16.94% | 14.29% | 16.40% | 18.29% |
| Profit after tax (“PAT”) | 1962.04 | 1672.72 | 1258.61 | 1125 |
| PAT Margin (%) | 9.41% | 8.09% | 11.10% | 12.88% |
| Cash Profit Margin | 11.13% | 9.82% | 12.60% | 14.24% |
| Net Worth (Total Equity) | 7979.84 | 5930 | 4312.51 | 3052.94 |
| Total Debt(10 | 7136.62 | 7000.98 | 3163.09 | 296.99 |
| Net Debt | 4311 | 3393.8 | 1242.01 | -1222.77 |
| Net Debt to EBITDA | 1.22 | 1.15 | 0.67 | -0.77 |
| Total Debt to Equity | 0.89 | 1.18 | 0.73 | 0.1 |
| Return on Equity (RoE) | 24.59% | 28.20% | 29.19% | 36.85% |
| Return on Capital Employed | 26.57% | 28.67% | 29.84% | 50.62% |
| Net Working Capital | -1 | 7 | 12 | 2 |
| Gross Block | 3949.46 | 3422.15 | 1884.92 | 1148.45 |
| Fixed Asset Turnover | 0.19 | 0.17 | 0.17 | 0.13 |
| Employee Count | 2475 | 1899 | 1138 | 987 |
CEIGALL INDIA LIMITED IPO Promoters & Shareholding of the Company
Ramneek Sehgal is the promoter and MD of the company. He along with other promoter companies holds more than 80% of pre-offer Equity Share capital in the company.
| Promoters | % of pre-Offer Equity Share capital (%) |
| Promoter | |
| Ramneek Sehgal | 26 |
| Ramneek Sehgal and Sons HUF | 46.13 |
| RS Family Trust | 13.24 |
| Total Promter holding (A) | 84.37 |
| Promoter Group | |
| Avneet Luthra | 0.03 |
| Mohinder Pal Singh Sehga | 5.63 |
| Parmjit Sehgal | 3.36 |
| Simran Sehgal | 5.6 |
| Total (B) | 14.62 |
| Total (C=A+B) | 99.99 |
Why Invest in CEIGALL INDIA LIMITED IPO?
While investing in an IPO-bounded company you should check its fundamentals that help to know its financial performance and competitive strength that drives its business growth. Fundamental analysis apart from financial and competitive strength, also help you to know the risk factors that can affect the business operations and future prospects of the company. After evaluating the variables such strength weakness, financials, you may strike a balance and decide to invest or not invest in an IPO.
Also Read: Difference Between Fundamental Analysis and Technical Analysis
In a listed company, apart from fundamental analysis, you can also perform the technical analysis, which also helps to know the share price valuation and movement as per the performance of the company. However, for an unlisted company, or company that introduced the IPO, you have only options to analyse the fundamentals of the company and compare the share price valuation from its listed peer group companies.
Competitive Strengths:
Fastest growing EPC Company
With over two decade of expertise, CEIGALL INDIA is one of the fastest-growing company in terms of three-year revenue CAGR as of fiscal 2023. The company's operating revenue has expanded dramatically, rising from Rs. 873.02 cr in Fiscal 2021 to Rs. 2,068.16 cr in Fiscal 2023 and Rs. 2085.76 cr in the 9M ending Dec 31, 2023. Their credentials and pre-qualifications in carrying out a variety of building projects have helped company to enhance their target market size and order book.
Healthy order book
Company's order book for the 9M ended Dec 31, 2023 and fiscals 2023, 2022, and 2021 amounted to Rs. 92,064.23 million, Rs. 117,166.70 million, Rs. 1,08,090.43 million, Rs. 63,461.30 million, and Rs. 19,808.40 million. Projects awarded by NHAI contributed 81.72% to the order book. The company is eligible to bid for single NHAI EPC projects up to Rs. 3,500 Cr and single NHAI HAM projects up to Rs. 3,200 Cr.
The company has been invited to participate in tenders with the Delhi Metro Rail Corporation Limited and a public sector undertaking for highways, bridges, and tunnel construction work in north-eastern India.
Demonstrated project development, execution and operational capabilities
Company through in-house engineering and design team has completed over 34 projects, including 16 EPC and one HAM project, in the roads and highways sector. As of Dec. 31, 2023, they have constructed over 1,739.88 lane kms of roads and highways across various states in India.
They undertake construction of specialized structures through M/s R.K. Infra, which they acquired a 50% stake in February 2024.
| Project Name | Scheduled
construction period |
Completed earlier than scheduled | Bonus received (in Rs. mil) |
| Khemkaran-Amritsar Project | 550 Days | 170 Days | 70.04 |
| Ismailabad-Dhand PKG I Project | 730 Days | 54 Days | 104.79 |
Efficient business model
Company follows a strategic approach, which involves conducting technical surveys, feasibility studies, and analyzing the technical and design parameters and costs involved in undertaking the project. The company invests a minimum amount on its machinery vertical, some of which are under buyback arrangements, to avoid blockage of capital in fixed assets and ensure availability of effective machinery for speedy execution of its projects. As of Dec. 31, 2023, rental equipment and owned equipment constitute 14.01% and 85.99% of the total equipment cost, respectively. The company has been able to generate RoCE of 26.57%, 28.67%, 29.84%, and 50.62% and RoE of 24.59%, 28.20 %, 29.19%, and 36.85% for the nine months ended Dec. 31, 2023, and Fiscals 2023, 2022, and 2021, respectively.
Selectively expand geographical footprint
Company intends to diversify and increase its presence in other states in order to develop its business. The company began operations in Punjab and has since extended to include road and highway projects in other Indian states such as Bihar, Jharkhand, Uttar Pradesh, Delhi, Maharashtra, J&K, etc. Geographic diversification would lessen dependency on individual states while capitalizing on various economic patterns in India
Diversification by leveraging existing capabilities
The company intends to diversify its portfolio by exploiting its expertise in the road and highway industry. The firm intends to diversify into projects such as runway building, railways, metros, earthworks, water treatment, and sewage.
Risk Factors:
Primarily dependent on contracts awarded by governmental authorities
The company's business is primarily dependent on contracts awarded by governmental authorities. As of Jan 31, 2024, projects awarded to the company by the NHAI constituted 81.72% of their Order Book, while the remaining 18.28% was from contracts with other central, state, and local departments.
Business concentrated in north, west and central region of India
Historically, company's project portfolio has been concentrated in the north, west, and central states of India. Starting the journey in Punjab, the company has undertaken road and highway projects in various other states. Such concentration exposes the company to various tail winds such as regional slowdown in construction activities, interruptions due to adverse climate conditions, vulnerability due to political and economic laws, etc.
Opposition from the public and politicians has a negative impact
Our projects may attract criticism from local communities and special interest groups, including the general public, forest authorities, and the mining department. These groups may regard activities as having a detrimental environmental impact, resulting in a halt or delay until conflicts are resolved. Political events, such as protests and strikes, can also have a negative impact on operations, particularly when they occur close to our building sites. Local and national elections frequently strain government and community resources, causing delays in considering new bids and granting building contracts.
CEIGALL INDIA LIMITED IPO Grey Market Premium (GMP)
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the CEIGALL INDIA LIMITED is trading around Rs 90 in the grey market. It means shares are trading at the upper band issue price of Rs 490 with a premium in the grey market and may list around the same price.
How to Apply for CEIGALL INDIA LIMITED IPO?
To apply in the CEIGALL INDIA LIMITED IPO just open a trading account and demat account with Moneysukh and follow the steps given below. However, by opening both these accounts with Moneysukh you will have the benefits of trading and investing in the stocks, commodities and currency.
Also Read: What to Know Before Investing in Stocks: 10 Things to Consider
At Moneysukh you will get the advantages of the best online trading app with the best features demat account at the lowest broking charges in India. Here you can also choose to trade in Algo-trading with the latest software algorithms like TradeTron, AlgoBulls, Quantman, Keev, Trade Radar, and FoxTrader all of are integrated with the most advanced charting systems TradingView to give you world-class trading and investing experience with updated market information and live feeds of the market data.
Also Read: How to Choose the Best Trading Platform in India: Points to Check
Steps to Apply for CEIGALL INDIA LIMITED IPO:
Step 1: To apply for CEIGALL INDIA LIMITED IPO use your PC or smartphone.
Step 2: Now browse to trade.moneysukh.com and log in with your User ID & password.
Step 3: Here just go to the IPO section and select the CEIGALL INDIA LIMITED IPO.
Step 4: Now you need to fill in the various details like price, quantity, and so on.
Note: Always keep in mind that while bidding at the cutoff price and then submit your application.
Step 5 : Here before submitting your IPO application successfully you have to make the payment.
Also Read: Choosing the right broker: Decoding the mystery of lowest brokerage charges
How to Check CEIGALL INDIA LIMITED IPO Allotment Status?
To check the CEIGALL INDIA LIMITED IPO allotment status you need PAN and IPO application details but that would be possible only after 12 Feb 2024 which is the basis of the allotment date. And after 13 Feb 2024, investors will start getting refunds if they don't get the allotment of shares. You can use various online reliable sources like BSE, and NSE including Moneysukh to check the allotment status.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
The allotment of shares in the IPO is not possible for every individual, especially when the IPO is oversubscribed. If you have applied through either the retail category or HNI category, and both these categories are oversubscribed many times, then your chances of getting the allotment are very low.
If you don't get the allotment of shares in the IPO, your money will refunded to your bank account after 13 Feb 2024 and if you get the allotment of any share, then the allocated shares will be transferred into your demat account on 13 Feb 2024 of on the date of listing date i.e. 14 Feb 2024. However, you can increase your chances of getting the allotment in IPOs, if you follow tips and tricks while applying.
Also Read: How to improve Allotment chances: 15 Tips for investing in IPO
