Ceigall India IPO News :The IPO of infrastructure construction company Ceigall India Limited has opened for subscription today on 1 August 2024. It can be subscribed till 5 August. The size of the IPO is Rs 1252.66 crore. Ceigall India has fixed the price band for the IPO at Rs 380-401 per share. There are 37 shares in a lot size, which means retail investors will have to bid with at least Rs 14837. Share allotment is on 6 August, while the company’s stock can be listed on BSE and NSE on 8 August.
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Anand Rathi: Subscribe for long term
Brokerage house Anand Rathi has advised to subscribe to Seagull India’s IPO for the long term.
1. The brokerage says that based on a three-year CAGR in revenue till FY24, Seagull India is one of the fastest-growing EPC companies.
2. The company has a strong order book spread across different business sectors and geographical regions, which allows them to pursue a large range of projects.
3 The company’s business volume and profit margin are increasing.
Swastika Investmart: Subscribe with caution
Brokerage house Swastika Investmart has advised to invest cautiously in Seagull India’s IPO.
4. According to the brokerage, the company’s strong order book, efficient business model and execution capabilities place the company in a position for sustained growth.
5. The financial performance of the company is continuously improving and its position in the sector is also continuously strengthening.
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Reliance Securities: Subscribe
Brokerage house Reliance Securities has given subscribe rating on Seagull India’s IPO.
6. The company follows an asset light model. One of the fastest growing EPC companies with 20 years of experience.
7. Expertise in executing specialized structure projects of various sizes.
8. It has strategically bid for projects, leveraging its experience in the roads and highways sectors to expand its portfolio in other sectors.
9. Ensuring better fixed asset turnover ratio and strong relationship with lenders helps in getting timely financing with competitive terms whenever required.
10. Seagull will continue to maximize revenues with its multiple projects and increase profit margins and return ratios over the next few years.
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What are the risks with the company
According to brokerage house Swastika Investmart, significant contingent liabilities, dependence on government contracts, high working capital requirements and tough competition pose major challenges. The IPO is priced at 20.7 times P/E. Although the company has strong growth prospects, there are some risks too, due to which one should subscribe with caution.
Ceigall India GMP
There is a craze in the grey market for the unlisted shares of Seagull India. It is at a premium of Rs 90 in the grey market, which is a 22 per cent premium in terms of the upper price band of Rs 401.
About IPO
The size of Seagal India’s IPO is Rs 1252.66 crore. It includes a fresh issue of 1.71 crore shares worth Rs 684.25 crore. At the same time, an offer for sale (OFS) of 1.42 crore shares worth Rs 569.41 crore is also included. The promoters of the company are Ramnik Sehgal, Ramnik Sehgal & Sons HUF and RS Family Trust. 50% of the IPO is reserved for qualified institutional buyers (QIB). While 35% is reserved for retail investors and 15% is reserved for non-institutional investors (NII).
(Disclaimer: Investing or selling stocks is advised by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
