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Ceigall India IPO
Ceigall India Ltd
₹14,060 /37 sharesMinimum Investment
Ceigall India IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 1 Aug ‘24 - 5 Aug ‘24 | ₹14,060 | 37 | ₹380 - ₹401 |
| Issue Size | IPO Doc |
|---|---|
| 1252.66Cr | RHP PDF |
Subscription rate
As of 05 Aug'24, 04:00 PM
| Qualified Institutional Buyers | 25.14x |
| Non-Institutional Investor | 12.85x |
| Retail Individual Investor | 3.37x |
| Employees | 10.67x |
| Total | 11.48x |
About Ceigall India
Founded in
2002
Managing director
Mr. Ramneek Sehgal
Parent organisation
Ceigall India Ltd
Strengths & Financials of Ceigall India
Strengths
Risks
Ceigall India has completed 34 projects in the roads and highways sector, including 16 EPC, one HAM, five operations and maintenance (O&M), and 12 item rate projects. The company is currently managing 18 projects—a mix of 13 EPC and five HAM projects—encompassing elevated corridors, bridges, flyovers, rail over-bridges, tunnels, expressways, runways, metro projects, and multi-lane highways.
Ceigall India also independently executes O&M projects.
Ceigall India has expanded its footprint across various Indian states. Initially active in six states in FY22, the company extended its reach to 10 states by FY24, including Punjab, Haryana, Rajasthan, Uttar Pradesh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Delhi, Maharashtra, and Bihar.
Ceigall India has shown a consistent rise in revenue from operations over the recent years, with figures rising from Rs 1,133.79 crore in FY22 to Rs 2,068.17 crore in FY23 and Rs 3,029.35 crore in FY24. Profit after tax (PAT) too climbed during this period, from Rs 125.86 crore in FY22 to Rs 167.27 crore in FY23 and to Rs 304.31 crore in FY24.
Ceigall India consistently invests a designated minimum amount in its machinery vertical, some of which is subject to buyback agreements. This allows the company to return the asset to the vendor after a specified period at a predetermined price, thereby ensuring the availability of efficient machinery for swift project completion without sinking capital in fixed assets.
Ceigall India's operations are heavily reliant on government contracts. As of June 30, 2024, about 80.31% of its order book comprised projects awarded by the National Highways Authority of India (NHAI), with the remaining 19.69% coming from other federal, state, and local governmental bodies. Any changes in government policies at any level could result in the alteration, cancellation, or renegotiation of these contracts, which would impact the company's operational outcomes.
Arun Goyal, one of Ceigall India’s directors, was previously associated with Trident Infotech Limited and was barred from the securities market in 2017 by BSE Limited due to his role in a company that was non-compliant with SEBI regulations. This past regulatory issue could potentially influence the company's market standing and investor confidence.
Ceigall India is obliged to pay royalties for mining activities as per contractual terms and applicable governmental policies. Any adverse modifications in these contracts or changes in government policies concerning mining royalties could negatively impact the company’s profitability.
A significant portion of Ceigall India's revenue comes from its road and highway sector projects, including specialised structures. These projects accounted for 92.71%, 96.57%, and 97.46% of the total revenue in the years ending March 31 of FY24, FY23, and FY22, respectively. Any failure to secure new contracts or the termination of existing ones could impact the company's financial health.
In 2021, Ceigall India ventured into the hybrid annuity model for highway projects, which differs from the traditional EPC method. It remains to be seen whether the company is able to successfully implement these HAM projects.
Ceigall India, along with its directors, promoters, and subsidiaries, is involved in various legal and regulatory proceedings. Any negative outcomes from these proceedings could adversely affect the company's business performance.
As of June 30, 2024, Ceigall India reported indebtedness of Rs 4,738.01 crore. Any inability to service or repay these debts could adversely affect the company’s business.
Ceigall India Financials
*All values are in Rs. Cr
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Application Details of Ceigall India IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹380 - 401 | Upto ₹2 Lakh |
| Employee | ₹342 - 363 | Upto ₹2 Lakh |
| High Networth Individual | ₹380 - 401 | ₹2 - 5 Lakh |
For Ceigall India IPO, eligible investors can apply as Regular & Employee.