Ceigall India IPO: GMP, Subscription Status To Be Reviewed. Buy or Not As Bidding Ends On Monday?

Ceigall India IPO: Ceigall India Limited’s Initial Public Offering (IPO) hit the Indian primary market on August 1, 2024, and will remain open for bidders till August 5, 2024. The subscription status of Ceigall India IPO suggests that the public issue has been fully subscribed despite heavy sell-off on Friday. The company announced the price band of Ceigall India IPO at ₹380 to ₹401 per capital share. The company intends to raise ₹1252.66 crore from the original offer, of which ₹684.25 crore was earmarked for issue of fresh shares. ₹568.41 crore is reserved for the Offer for Sale (OFS) route. However, the premium of Ceigall India shares has come down after the second day of bidding. According to stock market observers, the Ceigall India share price is at a premium ₹61 currently on the grey market.

Ceigall India IPO GMP Today

As mentioned, today’s Grey Market Premium (GMP) for Ceigall India IPO is ₹61, ₹14 less than Friday’s GMP Ceigall India IPO ₹75. Market watchers said Ceigall India IPO GMP has fallen on Friday’s stock market crash. They noted that weak global market signals led to heavy selling on Asian, European and US stock exchanges in the last session of the previous week. However, the IPO on the primary market was fully subscribed despite weak trends in the secondary market. They said that with one more day of bidding left, the IPO could see an increase in subscription on Monday next week.

Ceigall India IPO Subscription Status

After two offers, the public issue was booked 1.23 times, the retail portion of the book build issue was booked 1.65 times and the NII portion was filled 1.75 times. The QIB portion of the book build issue was booked 0.01 times.

Ceigall India IPO Review

Anand Rathi also gave a ‘subscribe’ tag to the public issue, “The company has a strong order book spread across business sectors and geographies, which enables it to bid for a wider range of projects, thereby maximizing business volume and profit margins. The company’s P/E ratio is 22.9 times based on its FY24 earnings, at a market capitalization of ₹69,854 million post equity issue and a market capitalization to sales ratio of 2.3 times FY24 earnings. We recommend a ‘Subscribe – Long Term’ rating for the IPO.

BP Equities also gave the issue a book build tag of ‘subscribe’, saying, “The issue is priced at a P/E of 20.7x at the high end of its FY24 earnings range, which is considered fair. Hence, we recommend a SUBSCRIBE rating for this issue.”

Ajcon Global Services, Arihant Capital Markets, Indsec Securities, Marwadi Shares and Finance, Motilal Oswal, Nirmal Bang, Reliance Securities, SBI Capital Securities and StoxBox have also marked the issue ‘subscribe’ as a book build issue.

Ceigall India IPO other details

The expected allotment date of Ceigall India IPO shares is 6th August 2024, i.e. Tuesday next week. In view of the T+3 listing rule, the most likely listing date of Ceigall India IPO shares is 8th August 2024, i.e. Thursday next week.

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