Ceigall India Ltd IPO: Review, Valuation, Opening Date & GMP

Ceigall India Limited IPO - Complete Overview

Ceigall India Limited IPO a Mainboard IPO is a book-built issue of Rs.1,252.66 crores by Ceigall India Limited which was established in 2002. It is an infra structure company that specializes in structural projects, such as flyovers, bridges, elevated roadways, tunnels, highways, expressways, and runways.

The company finished more than 34 road and highway projects by July 2024. 12 item rate projects, 5 O&M projects, 1 HAM project, are among these projects. Currently, the company's 18 active projects involve 13 EPC projects and 5 HAM projects. These include multi-lane roads, elevated corridors, flyovers, expressways, tunnels, runways, and metro projects. The corporation completed 2,158.72 lane km of O&M projects as of March 31, 2024, and has 1,488.17 lane km of active projects. 

Major multi-lane highway projects with specialized constructions are the company's specialty. These projects are carried out in several Indian states, including Punjab, Haryana, Rajasthan, Uttar Pradesh, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Delhi, Maharashtra, and Bihar.

Ceigall India Limited's Khemkaran-Amritsar Project took home the "Gold Award" at the 2020 National Highways Excellence Award. Additionally, they were given the "Special Award" at the 2021 National Highways Excellence Awards for their work on the Kartarpur Sahib and Ramdas Gurdaspur projects.

As of June 30, 2024, the company's Order Book was Rs.94,708.42 million, Rs.92,257.78 million, Rs.108,090.43 million, and Rs.63,461.30 million for the FYs 2024, 2023, and 2022, respectively. The business has recently finished a number of significant projects, such as building the Kartarpur-Sahib Project, expanding a road in Punjab, and completing the elevated corridor segment of the Delhi-Saharanpur Project. By March 31, 2024, the business will employ 2,256 people on a permanent basis.

The company plans to launch its Mainboard IPO on 1 August 2024.

 

 

Ceigall India Limited IPO Overview

Ceigall India IPO (Ceigall IPO) of Rs.1,252.66 crore comprises an offer for sale (OFS) of 1.42 crore Shares amounting to Rs.568.41 crore and a Fresh Issue of 1.71 crore Shares (amounting to Rs.684.25 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO will be available to investors on August 1, and conclude on August 5. The anticipated listing date for the IPO is Thursday, August 8, and it will be held on the BSE and NSE. The price band of the Share is Rs.380 to Rs.401.

If You want to apply for this IPO, Click Here to Open a Demat Account.

 

Company Financial

Ceigall India Limited's revenue climbed by 46.92%, while profit after tax (PAT) increased by 81.81% during the fiscal years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2024.

• The company’s total revenue is over Rs.3,066.19 crore.

• The net worth of the company is Rs.906.41 crore.

• The company's EBITDA is Rs.5,17.66 crore.

• The total assets of the company are Rs.2,592.19 crore.
  
  

(Amount in crore)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	2,592.19	1,827.82	959.14
Total Revenue	3,066.19	2,087.04	1,146.50
PAT	304.91	167.70	126.43
Net worth	906.41	593.06	431.25
Total Borrowings	1,811.02	1,252.58	652.12

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in crore)

Net Cash flow in various Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	-2,10.82	-72.71	-1,34.58
Net Cash Flow Investing Activities	-38.15	-1,33.795	-1,63.58
Net Cash Flow Financing Activities	2,74.92	25.97	9.61

 

Project-wise Revenue Bifurcation For The Last Three Fiscals

State-wise Revenue From Operations Bifurcation For The Last Three Fiscals

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Acquisition of equipments

• Full or partial repayment or payback of certain loans obtained by:
  1.The Company
  2.Its subsidiary, Ceigall Infra Projects Private Limited.

 

 

Peers of Ceigall India Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E
Pnc Infratech Ltd	2	35.45	14.75x
G R Infraprojects Limited	5	136.90	12.60x
H.g. Infra Engineering Ltd	10	82.64	20.43x
Knr Constructions Ltd.	2	27.64	13.17x
Itd Cementation India Ltd.	1	15.93	29.39x
J Kumar Infraprojects Limited	5	43.71	19.68x

 

Evaluation

The price of this IPO is Rs.380 to Rs.401 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024, with EPS of Rs.19.37 from the last year, the resulting P/E ratio is 20.70x.

Considering the weighted EPS of Rs.14.57 for the last three years, the P/E ratio is 27.52x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 18.34.

Particulars	P/E Ratio
Highest	29.39
Lowest	12.60
Average	18.34

In simple words, the P/E ratio of Ceigall India Limited-IPO (20.70x and 27.52x) when compared with the industry’s average P/E of 18.34x, has an overvaluation. Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• One of the EPC companies with the quickest growth and competence in implementing specialized structures.

• A robust orderbook providing long-term revenue transparency.

• Effective business plan.

• Knowledgeable management group.
  
  

IPO’s Weaknesses

• Contracts granted by governmental bodies are what drive its business. As of June 30, 2024, 80.31% of its Order Book consisted of the NHAI projects that had been granted; contracts with other Central, State, and Local Government agencies made up the other 19.69% of its Order Book. Their contracts may be foreclosed upon or canceled in response to unfavorable changes in Central, State, or Local Government policies. This could have a significant impact on its operations, profitability, and company.

• The company may see a drop in earnings, operating losses, or negative cash flows from operating activities in the future. The company has previously experienced negative cash flows from operating operations.

• Its cash flows, company, operational performance, and financial health might all suffer from delays in the completion of ongoing projects, which could also result in cost overruns, contract termination, or damage claims.

• For the Financial Years ended March 31, 2024, 2023, and 2022, respectively, its income from the execution of projects in the roads and highways sector, including specialized structures, comprised about 92.71%, 96.57%, and 97.46% of its total revenue. If the company is unable to get new contracts or has its present contracts canceled, it would have a substantially negative impact on the its financial situation.

• The company could be held accountable for mistakes or flaws that occurred during construction. In past, the company had paid out Rs.1.77 million and Rs.1.75 million in Fiscal 2024 and 2023, respectively, for claims of death and temporary disability.  These liabilities might have a negative impact on its operations, financial situation, and future prospects.

 

IPO GMP Today

The Latest GMP of Ceigall India Limited's IPO is Rs.23.

Ceigall India Limited IPO timetable (Tentative)

The IPO is scheduled from August 1 to August 5, 2024, with allotment on August 6, 2024,  refund initiation on August 7, 2024, and listing on August 8, 2024.

Events	Date
IPO Opening Date	August 1, 2024
IPO Closing Date	August 5, 2024
IPO Allotment Date	August 6, 2024
Refund Initiation	August 7, 2024
IPO Listing Date	August 8, 2024

 

Ceigall India Limited IPO Details 

The IPO with a face value of Rs.5 per Share is set to start on August 1, 2024, close on August 5, 2024, offer a total issue size of 31,238,480 Shares at Rs.380 to Rs.401 per Share with a Lot size of 37 Shares and will be listed at BSE and NSE.

IPO Opening & Closing date	August 1, 2024 to August 5, 2024
Face Value	Rs.5 per Share
Issue Price	Rs.380 to Rs.401
Lot Size	37 Shares
Issue Size	31,238,480 Shares (aggregating up to Rs.1,252.66 crores).
Offer for Sale	14,174,840 Shares (aggregating up to Rs.568.41 crores).
Fresh Issue	17,063,640 Shares (aggregating up to Rs.684.25 crores).
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

Ceigall India Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (37 Shares) amounting to Rs.14837, and 13 Lots (481 Shares) amounting to Rs.192,881 respectively, while for HNI investors, the minimum Lot is 14 (518 Shares) amounting to Rs.207,718. .

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
S-HNI (Min)	14 Lots
S-HNI (Max)	67 Lots
B-HNI (Min)	68 Lots

 

Ceigall India Limited IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

Promoters and Management of Ceigall India Limited IPO

• Ramneek Sehgal

• Ramneek Sehgal

• Sons HUF

• RS Family Trust
  
  

Pre-issue Promoter Shareholding	99.99%
Post-issue Promoter Shareholding	-

 

Ceigall India Limited IPO Lead Managers

• ICICI Securities Limited

• Iifl Securities Ltd

• Jm Financial Limited

 

 

Dividend Policy

The company has paid Rs.0.75 per Equity Share as dividends for FY 2024 and FY 2023.

 

Conclusion

The company has experienced negative cash flow in operating activities and investing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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