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 and executed a binding offer letter to divest Ceigall Bathinda Dabwali Highways Private Limited at an enterprise valuation of ₹356.20 crore, it said in a filing on 05 Nov 2026. The fund raise needs shareholder approval by special resolution through postal ballot.

Key highlights

• Fund raise approved: up to ₹1,000 crore through equity and/or other securities
• Authorised share capital: ₹110 crore to ₹120 crore, subject to shareholder approval
• Divestment enterprise valuation: ₹356.20 crore, subject to adjustments
• Completion expected on or before 31 Mar 2027

The board decisions in numbers

The fund raise and its approvals

The board approved raising up to ₹1,000 crore by issuing equity shares and/or other securities, including convertibles, debentures, depository receipts and other instruments, through methods the board considers appropriate. The filing says the issue is subject to regulatory and statutory approvals and to a special resolution of shareholders through postal ballot.

The company also approved raising its authorised share capital from ₹110 crore to ₹120 crore, which needs an ordinary resolution through postal ballot. The fund raise is set at ₹1,000 crore against a market value of ₹6,959 crore at the 04 Nov 2026 close, a ratio of about 14.4%. The company says the Notice of Postal Ballot will be shared in due course.

Divestment of the Bathinda subsidiary

The company executed in principle a Binding Offer Letter on 05 Nov 2026 with Neo Alternative Asset Managers Private Limited for the divestment of Ceigall Bathinda Dabwali Highways Private Limited, which it holds through Ceigall Infra Projects Private Limited. The deal is subject to requisite approvals. The divestment will be undertaken after approval of various authorities and lenders under the Concession Agreement, and the company expects completion on or before 31 Mar 2027.

Per the audited accounts as on 31 Mar 2026, the subsidiary's turnover was 1.90% of consolidated turnover and its net worth 2.30%.

Director appointment

Mr. Chandan Singh, aged 42, holds a B.Tech. in Mechanical Engineering and has more than 17 years of experience in the power and infrastructure sectors. He joined the Ceigall Group in April 2024 and most recently served as Wholetime Director of C & C Constructions Limited. His appointment is subject to shareholder approval.

What the fund raise and divestment mean for Ceigall India's shareholders

The filing sets a ceiling of ₹1,000 crore for the fund raise and ₹120 crore for authorised capital, but does not state the size of any issue, its price or its timing. The divestment's enterprise valuation is ₹356.20 crore, but the filing does not state the stake being sold, any consideration beyond that valuation, or whether the binding offer letter will become a binding sale agreement. It also does not give the reason for the divestment or how the ₹1,000 crore would be used.

The next dated steps are the postal ballot, whose date is not yet set, and completion of the divestment by 31 Mar 2027.