Ceigall India IPO opened today, August 01. The company plans to collect a total of Rs 1,252.66 crore through a combination of fresh shares as well as an offer for sale.

The IPO closes on August 05. Ceigall India will be raising Rs 684.25 crore by selling 17.1 million shares and promoters with other selling shareholders are selling 14.2 million shares to pocket Rs 568.41 crore.

Price Band

The company has kept the IPO price band in a range of Rs 380 to Rs 401 per equity share. The allotment of shares is expected to be finalised by August 06. Thereafter, the listing is expected to be on NSE and BSE on August 08, as per the tentative schedule.

GMP

The shares of Ceigall India were attracting a premium of 24% in the grey market. The shares change hands illegally in a grey market ahead of listing, it is an unofficial place of which the market’s regulator does not take guarantee.

Minimum Investment Required

A retail buyer needs to apply for at least one lot which is 37 shares in this case, which sums up to Rs 14,837. Meanwhile, there are different investment requirements for NIIs and QIBs.

About Ceigall India

The company is one of the fastest growing EPC companies with 20 years of experience and expertise in executing specialized structures projects of different sizes and involving varying degrees of complexity, which have been landmark projects for the company.

The company strategically bid for projects, leveraging its experience in roads and highways sectors to grow its portfolio in other sectors like HAM and BOT for higher business growth areas and expanding its geographical footprint to various states of India.

Reliance Securities on Ceigall India’s IPO

The company follows an asset-light model, ensuring better fixed asset turnover ratios and strong relationships with lenders enabling it to raise timely financing at competitive terms whenever required. “We believe CIL (the company) will continue to maximize revenues with multiple projects in hand and increase the profit margins and return ratio over the next few years. Hence, we recommend a “Subscribe” (rating) to the issue,” said Reliance Securities in an IPO note.

BRLMs and Registrar

ICICI Securities, IIFL Securities, and JM Financial are the book-running lead managers of the IPO, while Link Intime India is working as the registrar for the issue.