The initial public offering (IPO) of Ceigall India IPO Limited has hit the Indian primary market today, and it is generating significant buzz. As an infrastructure construction company specializing in large-scale projects, Ceigall India’s IPO is one of the most anticipated of the year. Here’s a detailed analysis of the Ceigall India IPO, including its GMP, review, subscription status, and other essential details to help you decide whether to invest.
Ceigall India IPO Key Details
1. Ceigall India IPO GMP:
- As per stock market observers, Ceigall India shares are trading at a premium of ₹70 in the grey market today.
2. Ceigall India IPO Price:
- The price band for the public issue is fixed at ₹380 to ₹401 per equity share.
3. Ceigall India IPO Subscription Date:
- The issue opened on August 1, 2024, and will remain open until August 5, 2024.
4. Ceigall India IPO Size:
- The company aims to raise ₹1,252.66 crore. Of this, ₹684.25 crore will be raised by issuing fresh shares, while ₹568.41 crore is reserved for the Offer for Sale (OFS) route.
5. Ceigall India IPO Lot Size:
- A bidder can apply in lots, and one lot of the public offer comprises 37 company shares.
6. Ceigall India IPO Allotment Date:
- The tentative date for share allocation is August 6, 2024.
7. Ceigall India IPO Registrar:
- Link Intime India Private Limited has been appointed as the official registrar.
8. Ceigall India IPO Listing:
- The IPO is proposed for listing on BSE and NSE.
9. Ceigall India IPO Listing Date:
- The tentative listing date is August 8, 2024.
| Category | Subscription (times) | Shares Offered | Shares Bid For |
|---|---|---|---|
| QIB | 0.00 | 6,237,721 | 5,550 |
| NII | 0.38 | 4,678,291 | 1,774,890 |
| Retail | 0.41 | 10,916,012 | 4,477,565 |
Ceigall India IPO Subscription Status
By 12:54 PM on day one of bidding, the public issue had been subscribed 0.29 times. The retail portion of the mainboard IPO was filled 0.41 times, and the NII portion was subscribed 0.35 times. Here’s a more detailed breakdown:
Ceigall India IPO Review: Should You Apply?
Analyst Reviews
Amit Goel, Co-Founder & Chief Global Strategist at Pace 360:
“Ceigall India Ltd is in the business of infrastructure and construction, specializing in structural projects such as elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways. It has become a preferred partner for NHAI projects and has recently partnered with Delhi Metro for rail infrastructure developments.
Over the periods, it has shown impressive CAGR growth in its top and bottom lines. The issue appears to be aggressively priced based on FY24 earnings. Moreover, it is a pure long-term play given the influx of orders and the order book in hand.”
Parth Shah, Research Analyst at StoxBox:
“Considering a fairly valued P/E of 20.7x on the upper price band based on FY24 earnings, we advise investors to subscribe to the issue from a medium to long-term perspective. At the next-week listing, we anticipate listing gains of about 25% to the upper band issue price of Rs. 401 per share.”
Tarun Singh, MD at Highbrow Securities:
“This IPO may seem like an attractive opportunity for investors. The company’s long-standing history, financial stability, and prominent position in the infrastructure construction sector make it appear promising for those seeking returns. However, potential investors must exercise caution and thoroughly evaluate all aspects before committing.
While Ceigall’s prospects are encouraging, scrutiny and monitoring of the IPO are essential as the company continues to strengthen its foothold in the industry.”
Financial Performance
Revenue Growth: Ceigall India’s revenue increased by 46.92%, and profit after tax (PAT) rose by 81.81% between the financial year ending March 31, 2024, and March 31, 2023.
Financials Overview:
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Assets | ₹2,592.19 Cr | ₹1,827.82 Cr | ₹959.14 Cr |
| Revenue | ₹3,066.19 Cr | ₹2,087.04 Cr | ₹1,146.50 Cr |
| Profit After Tax | ₹304.91 Cr | ₹167.70 Cr | ₹126.43 Cr |
| Net Worth | ₹906.41 Cr | ₹593.06 Cr | ₹431.25 Cr |
| Total Borrowing | ₹1,811.02 Cr | ₹1,252.58 Cr | ₹652.12 Cr |
Key Performance Indicators:
| KPI | Values |
|---|---|
| ROE | 33.57% |
| ROCE | 31.98% |
| Debt/Equity | 1.17 |
| RoNW | 33.57% |
| P/BV | 6.95 |
| PAT Margin | 10.05% |
Ceigall India IPO: Apply or Not?
The consensus among analysts seems to lean towards a ‘subscribe’ recommendation, especially for those with a medium to long-term investment horizon. The company’s impressive growth, strategic partnerships, and strong financial performance make it a promising candidate. However, potential investors should consider the aggressive pricing and conduct their due diligence.
Final Verdict:
If you are looking for a solid investment in the infrastructure sector with good long-term prospects, Ceigall India IPO could be a valuable addition to your portfolio. Ensure you review all details and consult with a financial advisor before making your investment decision.
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