Ceigall India Secures ₹981 Crore NHAI Project Announcement

Shares of Ceigall India Limited rose by around 7% to ₹362.25 during morning trade on December 26, 2024, following the announcement of a new project awarded to its subsidiary. The company’s subsidiary, Ludhiana Bathinda Greenfield Highway Private Limited, signed a concession agreement with the National Highways Authority of India (NHAI) for a highway development project worth ₹981 crore.

Project Details

The project involves the construction of a six-lane, access-controlled highway section of NH-754AD. The stretch runs from the Moga-Barnala Road (NH-703) junction near Tallewal village to the Delhi-Katra Expressway (NE-5) near Ballowal village. The project covers a length of 45.243 kilometres, from km 30+300 to km 75+543. It is part of the Ludhiana-Ajmer Economic Corridor under Bharatmala Pariyojna Phase-I, Package-2.

This project will be executed under the Hybrid Annuity Mode (HAM) and is expected to be completed within 24 months. Ceigall India will also handle the operation and maintenance of the highway upon its completion.

Financial Overview

The company utilised its IPO proceeds to reduce its debt by 62%, bringing it down to ₹413 crore. It currently manages 18 projects, including 13 Engineering, Procurement, and Construction (EPC) projects and 5 Hybrid Annuity Model (HAM) projects, spanning highways, metro lines, and elevated corridors.

Share Price Movement

Ceigall India’s stock, listed on the exchanges on August 8, 2024, at a 4% premium over its issue price, has seen fluctuations recently. By 11:27 AM on December 26, shares were trading at ₹352, up 2.5% from the previous close, after peaking at ₹359 earlier in the day.

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