Ceigall India Approves Merger Of Ceigall Infra With C&C Construction To Boost Infra Play

Last Updated:May 20, 2025, 14:13 IST

On Tuesday, shares of Ceigall India Ltd were trading in red at the time of writing this report. 

As of March 31, 2025, Ceigall Infra Projects had a turnover of approximately Rs 115 crore and a net worth of approximately Rs 64 crore

Ceigall India Ltd, an infrastructure company in EPC and Hybrid Annuity Model (HAM) projects, has announced board approval for the merger of its wholly owned subsidiary, Ceigall Infra Projects Pvt Ltd, with the publicly listed C&C Construction Ltd.

On Tuesday, shares of Ceigall India Ltd were trading in red at the time of writing this report.

The proposed merger, subject to approval by the National Company Law Tribunal (NCLT), aims to revive C&C Construction—which was earlier under liquidation—and integrate its capabilities in transmission, distribution, railways, bridges, and building construction into Ceigall’s broader  infrastructure portfolio.

In a stock exchange filing, Ceigall India stated: “The merger will result in administrative and operational rationalization, enhance business efficiency, flexibility, and agility, positioning the Transferee Company for sustainable growth.”

Industry experts see the acquisition as a strategic move that not only expands Ceigall’s market presence but also enhances its ability to raise equity. While Ceigall India is well capitalised, the proposed merger will allow Ceigall Infra Projects to garner more equity from the investors, which will enable the parent company to not only to meet existing equity commitment but also provide equity for future HAM projects. The acquisition of a listed company is also expected to improve Ceigall Infra Projects’ visibility and attract more institutional interest.

Post-merger, Ceigall India will hold up to 95% of the merged entity, with plans to reduce its stake to 75% in line with SEBI regulations. Analysts said the dilution is expected to provide a capital buffer to support upcoming infrastructure investments.

“This structure allows targeted capital raising for HAM and BOT projects, without impacting the EPC business,” said an analyst tracking the sector. “It also strengthens Ceigall’s equity position and enhances investor confidence.”

As of March 31, 2025, Ceigall Infra Projects had a turnover of approximately Rs 115 crore and a net worth of approximately Rs 64 crore.

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