Ceigall India plans ₹1,000 crore fund raise and divests a Bathinda subsidiary

Ceigall India (NSE: CEIGALL) approved a fund raise of up to ₹1,000 crore, a rise in authorised share capital to ₹120 crore and a whole time director appointment at a board meeting on 5 Nov 2026, it said in a filing on 05 Nov 2026. It also executed in-principle Binding Offer Letters to divest a step-down subsidiary for an enterprise valuation of ₹356.20 crore.

Key highlights

• Fund raise approved: up to ₹1,000 crore, subject to shareholder special resolution
• Authorised share capital: ₹110 crore raised to ₹120 crore, subject to ordinary resolution
• Divestment enterprise valuation: ₹356.20 crore, subject to adjustments
• Director appointment term: 3 years, from 05 Nov 2026 to 04 Nov 2029

The board decisions in numbers

Fund raise and capital changes need shareholder votes

The board approved raising up to ₹1,000 crore through equity shares and other securities, by methods that include a further public offer, rights issue, private placement and a qualified institutions placement. The filing says the approval requires a special resolution through postal ballot.

Separately, the board approved raising the authorised share capital from ₹110 crore to ₹120 crore, which requires an ordinary resolution through postal ballot. The board has approved a Notice of Postal Ballot, which the company says will be shared in due course. The structure, issue price and timing of the fund raise are to be decided by the board later.

A whole time director with a long power and infrastructure record

Chandan Singh, aged 42, holds a B.Tech. in Mechanical Engineering and has over 17 years of experience in the power and infrastructure sectors, according to the filing. The filing says he was associated with Reliance Infrastructure Limited for over 10 years and joined the Ceigall Group in April 2024, most recently as Wholetime Director of C & C Constructions Limited.

Divestment of a Bathinda road subsidiary

Ceigall has executed in-principle Binding Offer Letters with Neo Alternative Asset Managers Private Limited to divest Ceigall Bathinda Dabwali Highways Private Limited, a step-down subsidiary. The filing gives the subsidiary's turnover as ₹76.04 crore, or 1.90% of consolidated turnover, and its networth as ₹49.81 crore, or 2.30%, in the last financial year.

The divestment is to follow approval from various authorities and lenders under the Concession Agreement and is expected on or before 31 Mar 2027.

What the board decisions mean for Ceigall India's shareholders

The fund raise and the higher authorised capital both depend on shareholder approval by postal ballot, and the ballot notice is not yet issued. The divestment is subject to approvals and lenders' consent, with the filing listing completion by 31 Mar 2027 as the next dated step.

Not stated: the instrument, issue price and timing of any fund raise, the final consideration for the divestment beyond the enterprise valuation, the reason for the divestment, and the date of the postal ballot.