Ceigall India Ltd IPO

One of the fastest growing EPC companies with an experience in executing specialised structures.

Healthy orderbook giving long term revenue visibility.

Demonstrated project development, execution and operational capabilities.

Efficient business model.

Experienced management team.

The companys business is primarily dependent on contracts awarded by governmental authorities. As on June 30, 2024, the NHAI projects awarded to it constituted 80.31% of its Order Book, while the remaining 19.69% of its Order Book was from contracts with other central, state governmental and local departments. Any adverse changes in the central, state or local government policies may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material affect on its business, profitability and results of operations.

The company has sustained negative cash flows from operating activities in the past and may experience earnings declines or operating losses or negative cash flows from operating activities in the future.

Delays in the completion of construction of ongoing projects could lead to termination of its contracts or cost overruns or claims for damages, which could have an adverse effect on its cash flows, business, results of operations and financial condition.

All projects the company operates have been awarded primarily through competitive bidding process. Its bids may not always be accepted. The company may not be able to qualify for, compete and win projects or identify and acquire new projects, which could adversely affect its business and results of operations.

One of its Directors, Arun Goyal, was debarred from accessing the securities market in the past.

The company is required to pay royalty charges for mining pursuant to terms of its contracts and specific central and state regulations. Any adverse change in the terms of contract and policies adopted by the government regarding payment of royalty on mining could adversely affect its project cost and profitability.

There have been instances in the past where the company have not made certain regulatory filings with the RoC and been in non-compliance with certain requirements under Companies Act, 2013, and paid a penalty of Rs. 1.28 million. Any such instances of non-compliance may have an adverse effect on its reputation and impact the companys profitability.

Its operations are subject to accidents and other risks and could expose it to material liabilities, loss in revenues and increased expenses, which could have an adverse effect on its business, results of operations and financial condition.

The company Promoters and members of Promoter Group hold Equity Shares and have interests in its performance in addition to their normal remuneration or benefits and reimbursement of expenses incurred.

Projects sub-contracted or undertaken through a joint venture may be delayed on account of nonperformance of the joint venture partner, principal or sub-contractor, resulting in delayed payments or non enforcement of performance guarantee issued by it, could lead to material adverse effect on its business, prospects, financial condition and results of operations.