Ceigall India IPO Day 2: Should you subscribe or not? Check GMP, review, subscription status, issue details

Ceigall India IPO subscription status: The infrastructure company Ceigall India Ltd.'s initial public offering (IPO) began quietly and slowly yesterdaydespite the excitement in the secondary market where the domesticbenchmark indices hit all-time highs, with the employee segment leading the way. Ceigall India IPO subscription status was 61% on the first day of bidding, as per BSE data.

90% of the non-institutional investor portion was subscribed, compared to 80% of the retail investor quota. The employee portion was booked2.96 times, whereas the component for qualified institutional buyers (QIBs) has not yet been subscribed.

One day prior to the public subscription period for its initial share-sale, the company said on Wednesday that it earned ₹375 crore from anchor investors.The price range for the initial public offering (IPO) is ₹380 to ₹401 per share. Subscriptions for the IPO opened onThursday, August 1, and will run through Monday, August 5.

The book-running lead managers for the IPO are JM Financial Ltd, ICICI Securities Ltd, and IIFL Securities Ltd.

Building infrastructure, such as elevated roadways, flyovers, bridges, railroad overpasses, tunnels, highways, expressways, and runways, is the area of specialisation for Ceigall India Limited.

The business completed about 34 road and highway projects by July 2024. Project 16 EPC, one HAM project, five O&M projects, and twelve item rate projects are among these projects.

The company's profit after taxes climbed to ₹304.3 crore from ₹167.27 crore in the fiscal year 2024, while its operational revenue jumped by 46.5% to ₹3,029.35 crore from ₹2,068.17 crore in the year prior.

Ceigall India IPO Review

Highbrow Securities

The brokerage believes that Ceigall India Limited's recent financial results show an increasing trend. Both revenue and profit after taxes have grown significantly over the previous fiscal years. This shows that the market has a high demand for the company's services and that its operational methods are working.

The order book of the firm indicates a robust market position, characterised by a steady rise in the value of secured projects. This pattern indicates a consistent flow of contracts, guaranteeing a steady flow of income for the foreseeable future.

The brokerage believes that for investors, an IPO could appear like an attractive prospect. Given its lengthy history, sound financial status, and significant market share in the infrastructure building industry, the firm seems like a good choice for investors looking for profits. Before making any agreements, prospective investors should, therefore, proceed with prudence and carefully consider all the options. Ceigall's prospects are promising, but as the business expands its market share, close examination and oversight of the IPO are crucial.

Motilal Oswal Financial Services

Over the past 20 years, Ceigall has grown from a tiny construction business to a well-known EPC player, according to the brokerage. It will gain from this recent 50% ownership in R.K. Infra in terms of project execution skills and bid qualifications for upcoming projects. At 23 times FY24 P/E (on a diluted basis), the IPO is priced sensibly.The firm thinks Ceigall will profit from the government's emphasis on infrastructure. Recommend Subscribe.

Ceigall India IPO details

The IPO consists of an offer-for-sale (OFS) of 1,41,74,840 equity shares by existing shareholders, including promoters, and a fresh issue of equity shares for ₹684.3 crore by the firm.

The selling shareholders in the OFS include promoters Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, and Simran Sehgal.

The company intends to use the net proceeds to finance the following goals: general corporate purposes; equipment purchases; full or partial repayment or prepayment of certain loans taken out by the company; and Ceigall Infra Projects Private Limited, the company's subsidiary.

The registrar for the Ceigall India IPO is Link Intime India Private Ltd, while the book running lead managers are ICICI Securities Ltd, IIFL Securities Ltd, and JM Financial Ltd.

Ceigall India IPO GMP today

Ceigall India IPO GMP today or grey market premium is +70. This indicates Ceigall India share price were trading at a premium of ₹70 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ceigall India share price was indicated at ₹471 apiece, which is 17.46% higher than the IPO price of ₹401.

According to grey market activity over the previous seven sessions, the IPO GMP is heading upward and a robust listing is anticipated. Analysts at investorgain.com estimate that the lowest GMP is ₹0 and the maximum GMP is ₹140.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.