Ceigall India
Book Building issueMainboard₹1,253 Cr issue
+2.99%
Listing gain over issue price
Issue size
₹1,253 Cr
1 lot at cut-off
₹14,837
Lot size
37shares
Open
01 Aug 2024
Close
05 Aug 2024
Allotment
06 Aug 2024
Listing
08 Aug 2024
Listing performance
Issue price
₹401
Listed at
₹413
Listing-day close
₹386.75
Latest price
₹363.10
Close on 23 Oct 2026
Listing gain
+2.99%
Return since issue
-9.45%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 01 Aug 2024 – 05 Aug 2024
- Listing date
- 08 Aug 2024
- Face value
- ₹5 per share
- Issue price
- ₹401 per share
- Lot size
- 37 shares
- Issue type
- Book Building issue
- Total issue size
- ₹1,253 Cr
- Market cap at offer price
- ₹6,985 Cr
- Promoter holding
- 99.99% → 82.06% pre-issue → post-issue
- ISIN
- INE0AG901020
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- A-898, Tagore Nagar, Punjab
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 93,56,581 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 37 shares per lot, in multiples, at ₹401
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 37 | ₹14,837 |
| Retail (max) | 13 | 481 | ₹1,92,881 |
| S-HNI (min) | 14 | 518 | ₹2,07,718 |
| S-HNI (max) | 67 | 2,479 | ₹9,94,079 |
| B-HNI (min) | 68 | 2,516 | ₹10,08,916 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
93,56,581
Anchor portion
₹375 Cr
at ₹401 per share
Valuation and performance
Valuation at offer price
₹401 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 19.40 | 17.50 |
| P/E (×) | 20.67 | 22.91 |
| Price to book (×) | 6.95 | — |
| Market cap | — | ₹6,985 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 33.57%
- ROCE
- 31.98%
- Debt / equity
- 1.17
- PAT margin
- 10.05%
- NAV per share
- ₹57.68
- Price to book
- 6.95
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Ceigall India
Ceigall India Limited, incorporated in 2002 and converted to a public limited company in 2011, is an established infrastructure construction company with over 20 years of industry experience. The company has completed over 34 projects across ten states in India, including 16 EPC projects, one HAM project, five O&M projects, and 12 Item Rate Projects. Currently, it has 18 ongoing projects comprising 13 EPC and 5 HAM projects. The company operates through three primary business models: EPC projects (66.05% of Fiscal 2024 revenue), Hybrid Annuity Model projects (26.34%), and Operations & Maintenance (0.32%). Revenue is generated through construction contracts, with recognition primarily based on percentage completion method or item rate basis. The company recognizes revenue on an accrual basis and reports consolidated financial information including its subsidiaries and joint operations. In Fiscal 2024, the company recorded revenues of ₹30,293.52 million with a net profit of ₹3,043.07 million.
Company Analysis
from RHPCeigall India Limited is an infrastructure construction company specializing in engineering, procurement, and construction (EPC) of roads, highways, bridges, tunnels, and other specialized structures across India.
Ceigall India Limited, incorporated in 2002 and converted to a public limited company in 2011, is an established infrastructure construction company with over 20 years of industry experience. The company has completed over 34 projects across ten states in India, including 16 EPC projects, one HAM project, five O&M projects, and 12 Item Rate Projects. Currently, it has 18 ongoing projects comprising 13 EPC and 5 HAM projects. The company operates through three primary business models: EPC projects (66.05% of Fiscal 2024 revenue), Hybrid Annuity Model projects (26.34%), and Operations & Maintenance (0.32%). Revenue is generated through construction contracts, with recognition primarily based on percentage completion method or item rate basis. The company recognizes revenue on an accrual basis and reports consolidated financial information including its subsidiaries and joint operations. In Fiscal 2024, the company recorded revenues of ₹30,293.52 million with a net profit of ₹3,043.07 million.
Infrastructure constructionRoads and highwaysSpecialized structures (elevated roads, flyovers, bridges, tunnels, expressways)
Objects of the Issue
- Purchase of equipment ₹997.89 million p.25
- Repayment/prepayment of borrowings availed by our Company ₹3,845.73 million p.25
- Repayment/prepayment of borrowings availed by Subsidiary Ceigall Infra Projects Private Limited ₹288.27 million p.25
- General corporate purposes p.25
- Repayment of borrowings ₹3,000.00 million
- Funding capex for new equipment and machinery ₹2,842.52 million
- General corporate purposes ₹1,000.00 million
- Purchase of equipment ₹ 997.89 million p.109
- Repayment/ prepayment, in full or in part, of certain borrowings availed by our Company and our Subsidiary, Ceigall Infra Projects Private Limited ₹ 4,134.00 million (₹ 3,845.73 million for our Company and ₹ 288.27 million for our Subsidiary, CIPPL) p.111
- General corporate purposes Not to exceed 25% of the gross proceeds from the Fresh Issue p.114
- Objects of the offer not specified in this document section
Issue Structure
- Total Issue
- Up to [●] Equity Shares of face value of ₹5 each, aggregating up to ₹[●] million
- Fresh Issue
- Up to [●] Equity Shares of face value of ₹5 each, aggregating up to ₹6,842.52 million
- Offer for Sale
- Up to 14,174,840 Equity Shares of face value of ₹5 each, aggregating up to ₹[●] million
- Price Band
- [●] per Equity Share (to be finalized)
- Lot Size
- [●] Equity Shares (Bid Lot size to be determined)
- Face Value
- ₹5 per Equity Share
Business Model
The company earns revenue through three primary models: (1) EPC projects where it contracts to design, procure materials, and construct infrastructure; (2) HAM projects where it constructs assets under public-private partnership, receiving partial upfront funding and remaining payment through semi-annual annuities over a concession period, after which the asset transfers to the authority; and (3) O&M (Operations & Maintenance) projects. Revenue is recognized based on the percentage completion method for EPC and HAM projects, or on an item rate basis for certain projects.
Business Segments
Engineering, Procurement and Construction projects where the company designs, procures materials, and constructs infrastructure; revenue recognized based on percentage completion method or item rate basis
Hybrid Annuity Model projects under public-private partnership where the company constructs assets; authority provides partial upfront funding and remaining payment through semi-annual annuities over concession period; asset transfers to authority after concession period
Operations and Maintenance of completed infrastructure projects
Engineering, procurement, and construction projects where the company constructs infrastructure projects on fixed-price contracts with government authorities and receives payments upon achievement of contractual milestones.
Hybrid annuity model projects where the company finances 60% of project costs through equity and debt, receives 40% of costs from clients in instalments linked to completion milestones, and receives semi-annual annuity payments post-completion.
Operation and maintenance projects where the company undertakes independent operations and maintenance of infrastructure projects.
Projects where the company constructs infrastructure on an item rate basis.
Represents the estimated contract value of the unexecuted portion of existing assigned EPC contracts and is an indicator of visibility of future revenue for the Company
Represents the estimated unexecuted contract value from HAM projects and is an indicator of visibility of future revenue from special purpose vehicle entities created for executing HAM Projects, i.e., related party entities
Represents estimated unexecuted contract value from a third party, it is an indicator of visibility of future revenue from third-party customers
Design, engineering, procurement, construction, operation and maintenance of road and highway projects. The company is responsible for survey, investigation, design, engineering, procurement, construction and defect curing. Works include construction of highways, multi-lane roads, elevated corridors, bridges, and tunnels.
Developer bears 60% of project cost and handles complete operations and maintenance responsibility while government/authority bears 40% of project cost and undertakes toll collection. Company receives periodic annuity payments from government.
Operation and maintenance of completed highway projects. Company performs maintenance functions and cures construction defects during specified maintenance periods. Also includes undertaking independent O&M projects.
Engineering, Procurement and Construction contracts where the company designs and constructs highway projects with fixed contracts, responsible for completion of projects as per specifications and timeline
Hybrid Annuity Model projects where the company finances 60% of project cost through equity and debt, while government provides 40%, and the company operates and maintains the asset during the concession period receiving annuity payments
Operation and maintenance of completed highways including routine maintenance, safety standards compliance, traffic management, incident management and personnel deployment
Engineering, Procurement and Construction services for roads, highways, expressways, elevated roads, tunnels and HAM projects
Finance income on financial assets at amortised cost and revenue from goods and materials
Construction of road and other infra facilities
Construction, operation and maintenance of road under concession agreement
Sale of products
SWOT Analysis
Strengths
- • Demonstrated execution capability across diverse project types and geographies(p.51)
- • Early completion track record with bonus earnings(p.58)
- • Successful transition to new HAM project model(p.51)
- • Strong credit rating reflecting financial strength(p.68)
- • Revenue growth trajectory(p.59)
- • Leading EPC player with strong revenue growth(p.201)
- • Proven track record of early project completion(p.202)
- • Established expertise in specialized structures(p.201)
- • Strong financial performance with improving margins(p.207)
- • Excellent capital efficiency and returns(p.194)
- • Healthy order book with significant revenue visibility(p.208)
- • Qualified management with strong industry experience(p.207)
- • Geographic diversification across 10 states(p.203)
- • Established presence in HAM and EPC project models with track record(p.224)
- • Large and diversified equipment fleet supporting project execution(p.236)
- • Strong customer concentration with NHAI contributing 80.31% of order book(p.232)
- • Significant order book providing near-term revenue visibility(p.232)
- • Strategic partnership acquisition for specialized structural work capabilities(p.235)
- • In-house project management and specialized teams for efficient execution(p.235)
- • Established market presence with multi-decade experience in construction(p.292)
- • Rapid revenue and asset growth trajectory(p.286)
- • Growing subsidiary and SPV network expanding business reach(p.286)
- • Positive cash generation from financing activities(p.290)
- • Strong profitability growth(p.289)
- • Strong revenue growth and market position among peers(p.346)
- • Consistent track record of on-time or ahead-of-schedule project execution(p.346)
- • Large order book and strong project pipeline(p.347)
- • Proven expertise in diverse geographic locations and complex project types(p.347)
- • Strong financial performance with high profitability metrics(p.349)
- • Strategic partnerships and joint venture capabilities(p.348)
- • Significant completed project portfolio(p.347)
Weaknesses
- • Significant dependence on few customers, particularly NHAI(p.34)
- • High fixed costs from owned and rented equipment(p.55)
- • Declining employee retention rates(p.60)
- • Geographic concentration risk in north, west and central India(p.63)
- • Unregistered corporate office lease agreements(p.61)
- • Internal control deficiencies and vendor payment discrepancies(p.65)
- • Significant exposure to on-demand borrowings(p.69)
- • Rising debt levels relative to equity(p.207)
- • Declining order book and book-to-bill ratio(p.208)
- • Limited HAM project experience(p.212)
- • Heavy concentration in single client (NHAI)(p.208)
- • Increasing working capital needs(p.195)
- • Some projects completed with delays(p.215)
- • High employee attrition rate indicating retention challenges(p.238)
- • Significant equipment capital intensity with growing depreciation burden(p.236)
- • Substantial guarantees provided by promoter creating personal liability risk(p.251)
- • Rising raw material costs as percentage of revenues(p.237)
- • Dependence on concentrated customer base with limited diversification(p.236)
- • Limited insurance coverage may not adequately cover all business losses(p.239)
- • Negative operating cash flow in key years(p.290)
- • Heavy reliance on government customer base creating credit concentration risk(p.298)
- • Significant receivable collection delays with growing credit impairment(p.305)
- • Rising debt burden with substantial long-term borrowings(p.310)
- • Material dependence on key promoter guarantees for credit facilities(p.310)
- • Significant contract cost estimation and revenue recognition risks(p.293)
- • High leverage with increasing debt-to-equity ratio(p.349)
- • Negative operating cash flows despite profitability(p.369)
- • Dependence on NHAI for majority of order book(p.347)
- • Multiple regulatory and mining-related show cause notices(p.380)
- • Significantly increased finance costs with rising debt levels(p.365)
- • Declining book-to-bill ratio indicating slower project conversion(p.347)
Opportunities
- • Diversification into non-roads sectors with existing capabilities(p.54)
- • Expansion of HAM project portfolio(p.51)
- • Improved infrastructure spending by government(p.64)
- • Geographic expansion strategy(p.63)
- • Strategic acquisition to enhance project execution capabilities(p.50)
- • Large pipeline of road projects under balance of award(p.213)
- • Significant expansion of metro rail infrastructure(p.213)
- • Growth in water supply and sanitation sector(p.213)
- • Recent entry into metro segment(p.185)
- • Diversification into new infrastructure sectors(p.210)
- • Government focus on infrastructure development(p.202)
- • Airport infrastructure development opportunities(p.213)
- • Enhanced execution capabilities through R.K. Infra acquisition(p.212)
- • Expansion through Bharatmala Pariyojana creating significant highway construction pipeline(p.228)
- • Growing government focus on national infrastructure with multiple project models available(p.249)
- • Ability to leverage awards and recognition to win additional projects(p.250)
- • Potential to expand into new geographic regions and project types(p.249)
- • O&M contract portfolio providing recurring revenue streams(p.231)
- • Expansion into service concession arrangements and HAM projects(p.292)
- • Growth potential in infrastructure segment via subsidiary model(p.293)
- • Receivables from concession arrangements showing significant growth(p.303)
- • Material revenue from goods and materials sales emerging as revenue stream(p.313)
- • Finance income opportunity from concession arrangement receivables(p.313)
- • Significant government infrastructure investment and policy support(p.350)
- • Expansion of geographic footprint and project scope(p.347)
- • Increased pre-qualification credentials for larger project values(p.346)
- • Empanelment with major infrastructure organizations(p.346)
- • Hybrid Annuity Model projects generating predictable cash flows(p.346)
Threats
- • Land acquisition delays and non-availability impacting project execution(p.51)
- • Project cancellations due to land unavailability(p.52)
- • Intense competition from larger infrastructure companies(p.55)
- • Raw material price volatility and supply constraints(p.57)
- • Inability to pass cost increases to customers under fixed-price contracts(p.57)
- • Implementation risks including delays and cost overruns(p.56)
- • Seasonal variations affecting work progress(p.64)
- • Regulatory and environmental compliance requirements(p.70)
- • Manpower shortage and labor cost inflation(p.60)
- • Political unrest and opposition from local communities(p.65)
- • Economic slowdown and inflation impact(p.75)
- • Delays in land acquisition impacting project viability(p.186)
- • Past financial stress deterring private sector participation in road construction(p.186)
- • Volatility in raw material prices(p.187)
- • Challenges in scaling project execution and managing large projects(p.187)
- • Contractual obligation failures risk(p.187)
- • Slowing government award of new projects(p.162)
- • Intense competition in construction segment(p.187)
- • Highly competitive road construction industry with price as key deciding factor(p.240)
- • Delays in project completion can trigger termination and claims for damages(p.224)
- • Regulatory changes in environmental and labor laws can increase compliance costs(p.244)
- • Weather and monsoon dependency affecting project timelines in India(p.238)
- • Government policy changes and regulatory delays impacting project awards and execution(p.241)
- • Commodity price volatility affecting raw material costs (bitumen, steel, cement)(p.236)
- • Dependence on government contract awards and project pipeline continuity(p.330)
- • Exposure to project execution delays and cost inflation risks(p.293)
- • Regulatory and compliance risks from tax authorities(p.317)
- • Potential income tax litigation exposure(p.317)
- • Bank guarantee and contingent liability exposure affecting financial flexibility(p.317)
- • Working capital volatility and project milestone payment dependencies(p.292)
- • Significant regulatory and environmental compliance challenges(p.377)
- • Volatility in raw material costs impacting margins(p.350)
- • Intense competition from larger, better-resourced competitors(p.351)
- • Adverse weather and geographic conditions affecting project execution(p.350)
- • Dependence on government policy and budgetary allocations(p.350)
- • Risk of contract cancellation and non-availability of land(p.349)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ramneek Sehgal | Promoter/Promoter Selling Shareholder | 26.00% | — |
| Ramneek Sehgal and Sons HUF | Promoter/Promoter Selling Shareholder | 46.13% | — |
| RS Family Trust | Promoter | 13.24% | — |
| Ramneek Sehgal | Promoter/Managing Director | — | — |
| Mohinder Pal Singh Sehgal | Promoter | — | — |
| Parmjit Sehgal | Promoter | — | — |
| Ramneek Sehgal | Promoter | 26.00% | [●] |
| Ramneek Sehgal and Sons HUF | Promoter | 46.13% | [●] |
| RS Family Trust | Promoter | 13.24% | [●] |
| Mohinder Pal Singh Sehgal | Promoter Group | 5.63% | [●] |
| Parmjit Sehgal | Promoter Group | 3.36% | [●] |
| Simran Sehgal | Promoter Group | 5.60% | [●] |
| Avneet Luthra | Promoter Group | 0.03% | [●] |
| Ramneek Sehgal | Promoter | — | — |
| Ramneek Sehgal | Promoter | 85.37% | — |
| Ramneek Sehgal and Sons HUF | Promoter | — | — |
| RS Family Trust | Promoter | — | — |
| Ramneek Sehgal & Sons HUF (through Ramneek Sehgal as karta) | Promoter | 46.13% | — |
| Ramneek Sehgal | Promoter | 26.00% | — |
| RS Family Trust | Promoter | 13.24% | — |
| Mohinder Pal Singh Sehgal | Promoter Group | 5.63% | — |
| Simran Sehgal | Promoter Group | 5.60% | — |
| Ramneek Sehgal | Promoter | — | — |
| Ramneek Sehgal | Selling Shareholder | — | — |
| Ramneek Sehgal and Sons HUF | Selling Shareholder | — | — |
| Avneet Luthra | Selling Shareholder | — | — |
| Kanwaldeep Singh Luthra | Selling Shareholder | — | — |
| Mohinder Pal Singh Sehgal | Selling Shareholder | — | — |
| Parmjit Sehgal | Selling Shareholder | — | — |
| Simran Sehgal | Selling Shareholder | — | — |
Leadership
Ramneek Sehgal · Managing Director/Executive Director
Utkarsh Gupta · Company Secretary and Compliance Officer
Kapil Agarwal · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Ceigall India IPO FAQs
What is the lot size of Ceigall India IPO?
The minimum lot size of Ceigall India IPO is 37 shares. One lot costs ₹14,837 at the cut-off price.
When does Ceigall India IPO open and close?
Ceigall India IPO opened for subscription on 01 Aug 2024 and closed on 05 Aug 2024.
What is the listing date of Ceigall India IPO?
Ceigall India IPO listed on 08 Aug 2024.