Ceigall India Limited IPO

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They are a prominent infrastructure construction company with over 20 years of experience, specializing in structural projects such as elevated roads, flyovers, bridges, railway over-bridges, tunnels, highways, expressways, and runways. Recognized as one of the fastest-growing engineering, procurement, and construction (EPC) companies in terms of three-year revenue CAGR as of Fiscal 2024, we have demonstrated robust growth and significant expertise in our domain.

Project Portfolio and Capabilities

Their capabilities have expanded significantly since their inception in July 2002. Initially, they handled smaller projects, such as a road project for the Punjab Public Works Department, Ludhiana division, in 2006, which had an aggregate project cost of ₹ 62.94 million for 20.42 lane km. Over the years, they have undertaken more complex projects, including a four-lane highway EPC project from NHAI in 2014 and a recent four-lane elevated corridor EPC project awarded by NHAI with a project cost of ₹ 19,693.90 million.

As of now, they are eligible to bid for single NHAI EPC projects up to ₹ 57,000.00 million and single NHAI HAM projects up to ₹ 55,000.00 million. Additionally, they have been empanelled with the Delhi Metro Rail Corporation Limited for upcoming tenders and with a public sector undertaking for highways, bridges, and tunnel construction work in the northeastern states of India.

Completed and Ongoing Projects

Their company has completed over 34 projects, including 16 EPC, one HAM, five O&M, and 12 Item Rate Projects in the roads and highways sector. Currently, they are engaged in 18 ongoing projects, which encompass a diverse range of structures such as elevated corridors, bridges, flyovers, rail over-bridges, tunnels, expressways, runways, metro projects, and multi-lane highways.

Order Book and Clientele

Their Order Book as of June 30, 2024, stood at ₹ 94,708.42 million, with a significant contribution from NHAI projects, accounting for 80.31% of their Order Book. Other key public sector clients include Indian Railway Construction International Limited (IRCON), Military Engineer Services (MES), and Bihar State Road Development Corporation Limited (BSRDCL).

Conclusion

Their journey from a small construction company to a leading EPC player showcases their growth, resilience, and commitment to excellence. With a robust financial standing, a diversified project portfolio, and a strategic focus on leveraging government infrastructure investments, they are poised for continued success and expansion in the infrastructure construction industry.

Objects of the Ceigall India Limited IPO:

The company proposes to utilize the Net Proceeds towards funding the following objects (collectively, the "Objects"): i. Purchase of equipment; ii.  Repayment/ prepayment, in full or in part, of certain borrowings availed by: (a). The Company; and (b). The Subsidiary, Ceigall Infra Projects Private Limited Total number of share issue of :- i. Fresh issue is 17,063,640 shares, ii. Offer for sale is 14,174,840 shares.

Ceigall India Limited IPO Details:

Open Date: Aug 01 2024
Close Date: Aug 05 2024
Total Shares: 31,238,480
Face Value: ₹ 5 Per Equity Share
Issue Size: 1,252.66 Cr.
Lot Size: 37 Shares
Issue Price: ₹ 380 - 401 Per Equity Share
Listing At: NSE,BSE
Listing Date: Aug 08 2024

Promoters And Management:

Ramneek Sehgal is the Managing Director and one of the Promoters of the Company. He has been associated with the Company since its incorporation. He is responsible for expansion, profitability, overall growth and innovation of the Company, as well as preparing and implementing business plans, managing cost-effective operations and market development activities. He holds a bachelor’s degree in commerce from Osmania University. Puneet Singh Narula is the Whole-Time Director of the Company. He has been associated with the Company since May 2, 2023. He holds a bachelor’s degree in civil engineering from Guru Nanak Engineering College, Ludhiana, Punjab University. He is an associate member of the Institution of Engineers (India). He is responsible for managing overall operations of the Company. Prior to joining the Company, he was associated with IRCON International Limited, AFCONS Pauling Joint Venture, Galfar Engineering and Contracting (India) Private Limited and KCC Buildcon. Arun Goyal is an Independent Director of the Company. He has been associated with the Company since March 1, 2021. He holds a bachelor’s degree in commerce from Punjab University, Chandigarh. He is an associate member of the Institute of Chartered Accountants of India. Prior to joining the Company, he was associated with Trident Group for 22 years.

Financials of Ceigall India Limited IPO:

Particulars ( In Crores )
2022
2023
2024
Revenue from Operations 1,134 2,068 3,029
Other Income 13 19 37
Total Revenue 1,147 2,087 3,066
Cost of Material Consumed 411 687 1,053
Cost of Construction 460 987 1,298
Employees Benefit Expenses 25 30 62
Other Expenses 51 68 99
EBITDA 199 315 555
OPM (%) 17.32% 15.07% 18.08%
Depreciation & Amortisation 19 38 55
EBIT 180 277 500
Finance Cost 11 52 94
PBT 169 225 405
Tax 44 58 101
PAT 126 167 304
NPM (%) 10.98% 8.01% 9.92%
No.of Shares 15.95 15.95 15.95
EPS 7.22 9.60 17.46

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Ceigall India Limited 3,029 304 19.07 22.9 401 6,985
PNC Infratech Limited 8,650 909 35.45 14.0 496 12,713
G R Infraprojects Limited 8,980 1,323 136.90 15.8 1,775 17,162
H.G. Infra Engineering Limited 5,378 539 82.64 19.6 1,586 10,337
KNR Constructions Limited 4,429 752 27.64 14.6 392 11,027
ITD Cementation India Limited 7,718 274 15.93 32.1 511 8,782
J Kumar Infraprojects Limited 4,879 329 43.43 19.5 843 6,382
* All the data is as per FY24.

Recommendation on Ceigall India Limited IPO:

To be updated shortly.

Registrar of Ceigall India Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Ceigall India Limited A-898, Tagore Nagar Ludhiana - 141 001 Phone: +91 161 4623666 Email: secretarial@ceigall.com Website: https://www.ceigall.com/

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