The initial public offering (IPO) of Ceigall India opened for bidding on Thursday, and more than half of the issue was subscribed on its first day. Ceigall India's IPO was subscribed 0.63 times overall. The public issue saw a 0.84 times subscription rate in the retail category, 0.00 times in the Qualified Institutional Buyers (QIB) category, and 0.93 times in the Non-Institutional Investors (NII) category as of August 1, 2024, 6:21 PM.
As of the latest update, the IPO offers 2,18,87,120 shares and has received bids for 1,37,30,182 shares. The price band for the Ceigall India IPO is between Rs 380 and Rs 401 per share.
Swastika Investment Ltd highlighted the company's consistent financial performance, marked by increasing top and bottom lines, solidifying its sector position. However, they also pointed out significant contingent liabilities, dependence on government contracts, high working capital requirements, and intense competition as key challenges. The IPO is priced at a fully valued P/E of 20.7x. While the company's growth prospects are promising, these risks warrant a cautious approach and a long-term perspective is essential for investors considering this IPO.
Anand Rathi’s report emphasized that Ceigall India Limited is among the fastest-growing engineering, procurement, and construction (EPC) companies, based on a three-year compound annual growth rate (CAGR) in revenue as of Fiscal Year 2024. The company has a strong order book spread across various business sectors and geographical regions, allowing it to pursue a wider range of project tenders, thereby maximizing its business volume and profit margins. The company's P/E ratio is 22.9 times based on its FY24 earnings, with a market capitalization of Rs 69,854 million after the issuance of equity shares and a market cap-to-sales ratio of 2.3 times its FY24 earnings. Considering these factors, Anand Rathi recommends a “Subscribe – Long Term” rating to the IPO.
Master Capital Services Limited commented that Ceigall India Ltd, a fast-growing EPC firm with a robust order book and proven expertise, is ideal for medium to long-term investment despite reliance on government contracts and sector dependencies.
Ceigall India IPO's latest GMP (Grey Market Premium) is Rs 90, updated on August 1st, 2024, at 04:27 PM. Given the price band of Rs 401.00, the anticipated listing price of Ceigall India’s IPO is Rs 491 (the sum of the cap price and today's GMP). This suggests an expected gain or loss per share of 22.44%.
The Ceigall India IPO will be open for subscription from August 1, 2024, to August 5, 2024. Allotment details for the IPO are expected to be finalized on Tuesday, August 6, 2024. The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a tentative listing date set for Thursday, August 8, 2024.
