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Shares of Ceigall India will be listed at the bourses after the successful completion of the IPO on Monday. The company has fixed the IPO price at the upper end of the price band of ₹380 to ₹401.
The public issue of the infrastructure construction company witnessed a strong response, as the IPO was subscribed 13.78 times. The ₹1,252.66-crore IPO consisted of a fresh issue of up to ₹684.25 crore and an offer-for-sale of ₹568.41 crore by promoter selling shareholders and individual selling shareholders. As against an issue size of 2.23 crore shares (net-off anchor portion), the IPO received bids for 30.75 crore shares.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said: “Ceigall India received a very decent subscription demand where QIB & NII showed maximum interest while retail investors stayed neutral with 3.8x demand only. Considering the market mood and the subscription figures, we believe Ceigall India would witness a very decent listing gain in the range of 5-10 per cent on the issue price.”
The portion allocated for QIBs attracted bids for 34.50 times, the quota for retail investors was subscribed by 3.77 times and HNIs by 14.42 times. The employees’ quota, which received a discount of ₹38 on the issue price, was subscribed by nearly 11.55 times.
Earlier, the company had garnered ₹375.20 crore from anchor investors. The company intends to use the net proceeds for equipment purchases, the full or partial repayment or prepayment of certain loans taken by the company and its subsidiary Ceigall Infra Projects Private Limited, and for general corporate purposes.
“We continue to believe and hold our long term positive outlook on Ceigall India business model with high focus on infra theme and it could deliver impressive revenue growth, driven by a strategic focus on specialized structures and road projects, underscores its technical expertise and market demand for its services. With a diverse order book spanning various regions and project types, Ceigall is well-positioned for sustained revenue visibility and profitability,” Tapse said.
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