Ceigall India's Shares Tumble Despite Early Gains: A Volatile Market Day

Shares of Ceigall India Ltd experienced significant volatility on Thursday. Initially listing with a premium on both BSE and NSE, the stock eventually dropped by nearly 4%. The company, which recently completed an IPO, plans to use proceeds for equipment purchase, debt repayment, and corporate purposes.

Shares of infrastructure company Ceigall India Ltd ended Thursday with a discount of nearly 4%, erasing all initial gains amid profit-taking in a tumultuous equity market.

The stock debuted with a 2.99% premium at Rs 413 per share on the BSE, compared to the issue price of Rs 401. It soared by 5.98% to Rs 425 during the day, but then reversed gains to close at Rs 386.05, a decline of 3.72%. Meanwhile, on the NSE, the stock listed at Rs 419, reflecting a 4.48% premium, but it too slid into negative territory, closing at Rs 387.80, down 3.29%.

The company's market valuation stood at Rs 6,725.18 crore. The broader market also experienced a downturn, with the BSE Sensex falling by 581.79 points or 0.73% to 78,886.22, and the NSE Nifty dropping by 180.50 points or 0.74% to 24,117.

The Rs 1,252.66-crore initial public offering (IPO) of Ceigall India, which was subscribed 13.75 times, included a fresh issue of Rs 684.25 crore and an offer-for-sale (OFS) of up to 1.42 crore equity shares worth Rs 568.41 crore. The price range for the offer was Rs 380-401 per share. Proceeds will be used for purchasing equipment, debt repayment, and general corporate purposes.

Founded in 2002, Ceigall India specializes in structural works like elevated roads, flyovers, and tunnels, serving clients such as Indian Railway Construction International Ltd and the Bihar State Road Development Corporation Ltd.

(With inputs from agencies.)