Ceigall India IPO: GMP, subscription status to review. Buy or not as bidding ends today?

Ceigall India IPO: The initial public offering (IPO) of Ceigall India Limited hit the Indian primary market on 1st August 2024 and will remain open for bidders until 5th August 2024. Ceigall India's IPO subscription status suggests that the public issue has been fully subscribed to despite a strong sell-off on Friday. The company has declared the Ceigall India IPO price band at ₹380 to ₹401 per equity share. The company aims to raise ₹1,252.66 crore from its initial offer, of which ₹684.25 crore is aimed at issuing fresh shares. ₹568.41 crore is reserved for the Offer for Sale (OFS) route. However, the premium of Ceigall India shares decreased after day two of bidding. According to stock market observers, Ceigall India share price is available at a premium of ₹61 in the grey market today.

Ceigall India IPO GMP today

As mentioned, today's Ceigall India IPO grey market premium (GMP) is ₹61, ₹14 lower than the weekend's Ceigall India IPO GMP of ₹75. Market observers said Ceigall India IPO GMP slipped due to Friday's stock market crash. They noted that weak global market cues led to heavy selling in the Asian, European and US stock markets in the last session of the previous week. However, the mainboard IPO was fully subscribed despite weak trends in the secondary market. They said that one day of bidding is still left, and the subscription to the public offer may pick up on Monday next week.

Ceigall India IPO subscription status

After two days of bidding, the public issue was booked 1.63 times, the retail portion of the book build issue was subscribed 1.97 times, and the NII portion was filled 1.75 times. The QIB portion of the book build issue was booked 0.01 times.

By 10:21 AM on day 3 of bidding, the public issue was booked 1.23 times, the retail portion of the book build issue was subscribed 1.65 times, and the NII portion was filled 2.85 times. The QIB portion of the book build issue was booked 0.02 times.

Ceigall India IPO review

Anand Rathi has also given a 'subscribe' tag to the public issue: "The company has a strong order book spread across various business sectors and geographical regions, allowing them to pursue a wider range of project tenders, thereby maximizing their 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 ₹69,854 million after the issuance of equity shares and a market cap-to-sales ratio of 2.3 times its FY24 earnings. We recommend a "Subscribe – Long Term" rating for the IPO."

BP Equities also gave the book build issue a 'subscribe' tag, saying, "The issue is valued at a P/E of 20.7x on the upper price band based on FY24 earnings, which is deemed fair. Therefore, we recommend a SUBSCRIBE rating for the 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 assigned a 'subscribe' tag to the book build issue.

Ceigall India IPO other details

The tentative date for Ceigall India IPO allotment is 6th August 2024, i.e., Tuesday next week. In the wake of the ‘T+3’ listing rule, the most likely Ceigall India IPO listing date is 8th August 2024, i.e., Thursday next week.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.