₹ 14837 / 37 shares
IPO Details
RHP/DRHPIssue Date
01 Aug - 5 Aug'24
Investment/lot
₹ 14837
Price Range
380 - 401
Lot Size
37
IPO Size
₹ 1252.87 Cr
IPO Listing Details
Listing On
8 Aug'24
Issue Price
401
Listed Price
₹ 419
Retail Gain/Listing Gain
▲4.49%
IPO Timeline
Ceigall India IPO Review | About the company, IPO issue details, business model | Must Watch
Kotak Securities
•3m 10s
Ceigall India Ltd Company Background
Ceigall India Limited is an infrastructure construction company with experience in undertaking specialised structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways.
Over the last two decades, the company has transitioned from a small construction company to an established engineering, procurement and construction (EPC) player, demonstrating expertise in the design and construction of various road and highway projects including specialised structures across 10 states in India (Source: CARE Report).
With that, let's take a look at the competitive strengths and risk factors for Ceigall India Limited:
Ceigall India Ltd Competitive Strengths
One of the fastest-growing EPC companies with experience in executing specialised structures
It is one of the fastest growing EPC companies in terms of three-year revenue CAGR as of Fiscal 2024, among the companies with a turnover of over ₹10,000 million in Fiscal 2024 (Source: CARE Report). In Fiscal 2024, they achieved one of the highest year-on-year revenue growth of approximately 43.10%
Demonstrated project development, execution and operational capabilities
As of March 31, 2024, they have constructed over 1,739.88 kilometres of roads and highways. Their EPC projects, the Khemkaran-Amritsar Project and Ismailabad-Dhand PKG I Project, were completed before the stipulated time. For the two projects, they received bonuses of ₹70.04 million and ₹104.79 million respectively.
Efficient business model
The company efficiently utilises resources, maintains a low working capital cycle, and effectively controls operational expenses. With minimal investment in fixed assets, it purchases most construction equipment on a buy-back basis. Additionally, a high external credit rating ensures low finance costs. This has enabled Ceigall India Limited to achieve a RoCE of 31.98%, 28.67%, and 29.84% and a RoE of 33.57%, 28.20%, and 29.19% for the fiscal years 2024, 2023, and 2022, respectively.
Risk Factors
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They have sustained negative cash flows from operating activities in the past and may experience earnings declines, operating losses, or negative cash flows from operating activities in the future.
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Delays in the completion of construction of ongoing projects could lead to the termination of their contracts, cost overruns or claims for damages, which could have an adverse effect on their cash flows, business operations, etc.
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All projects have been awarded primarily through a competitive bidding process. Bids may not always be accepted and the company may not be able to qualify for, compete and win projects or identify and acquire new projects, which could adversely affect the business.
Key Strategies
- Diversify by leveraging existing capabilities.
- Continue to explore a hybrid annuity-based model to optimise their project portfolio.
- Continue focusing on enhancing execution efficiency.
Ceigall India Ltd Key Financials
Here are the key financials for Ceigall India Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•04m 01s
How to apply for an IPO using UPI
Kotak Securities
•01m 19s
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for Ceigall India Ltd IPO?
Here are the steps to apply for Ceigall India Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Ceigall India Ltd IPO FAQs
When is Ceigall India Ltd IPO listing date?
Ceigall India Ltd IPO will list on 2024-08-08.
What is the issue size of Ceigall India Ltd IPO?
1252.87 is the issue size of Ceigall India Ltd IPO.
What is the minimum lot size required for Ceigall India Ltd IPO?
The minimum lot size is 37 shares and the investment required is ₹14837.
What is the price band of the Ceigall India Ltd IPO?
The price band of Ceigall India Ltd IPO is ₹380 to ₹401.
Where can I read more about Ceigall India Ltd business?
You can read more about Ceigall India Ltd and its IPO from the company’s red herring prospectus (RHP) here.
What is the Ceigall India Limited IPO?
The Ceigall India Limited IPO has an issue size of ₹1,252.66 crores. The IPO opens for subscription on 1st August 2024 and closes on 5th August 2024
Who is the Registrar for Ceigall India Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
