The Initial Public Offering of Ceigall India Limited was subscribed 61% on the first day of bidding.
The issue received bids of 1,35,20,113 shares against the offered 2,23,13,663 equity shares, at a price band of ₹380-401, according to the data available on the stock exchanges.
Employee Portion was the most subscribed portion with 2.96 times. Non-Institutional Investors Portion and Retail Portion were subscribed 0.90 times and 0.80 times respectively, whereas Qualified Institutional Buyer Portion is still to see traction. The issue kicked off for subscription on Thursday, August 1, 2024, and will close on Monday, August 5, 2024.
A day before the opening of the issue, Ceigall India Ltd raised Rs 375.20 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were Nomura Funds Ireland Public Ltd – India Equity Fund, ICICI Prudential Flexicap Fund, HDFC Smallcap Fund, HDFC Trustee Company Ltd, Nippon Life India Smallcap Fund, Kotak Infrastructure & Economic Reform Fund, Axis Mutual Fund, Bandhan Infrastructure Fund, SBI General Insurance Company, Nataxis International Fund, Carmignac Portfolio, Goldman Sachs (Singapore) PTE- ODI, Tata Multicap Fund, Tata Dividend Yield Fund, ICICI Prudential Life Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd, Max Life Insurance Ltd, Edelweiss Trusteeship Co. Ltd. Bank of India Manufacturing & Infrastructure Fund, Universal Sompo General Insurance Company Ltd, Hero Venture Trust, Integrated Core Strategies(Asia) PTE., Ltd. Societe Generale, Morgan Stanley Asia (Singapore) PTE., Citigroup Global Markets Mauritius Pvt. Ltd..
Leading brokerage firms like Deven Choksey Research, Nirmal Bang Securities, SBI Securities, BP Equities, Stoxbox, Arihant Capital, Reliance Securities, Motilal Oswal and Swastika Investmart, have given a “Subscribe” rating to the issue highlighting the company’s rapid growth as an EPC company with a strong track record in road and highway projects across India. With a robust order book, efficient business model, and a strategic focus on infrastructure expansion, Ceigall is well-positioned to benefit from industry tailwinds and significant investments in the infrastructure sector. Despite challenges such as high debt levels, geographical concentration, and intense competition, the company's consistent financial performance and competitive advantage in winning new projects make it a promising investment. It emphasizes its long-term growth potential while noting the need for a cautious approach due to certain risks.
ICICI Securities Limited, IIFL Securities Limited, and JM Financial Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.