Ceigall Secures LOI For ₹450 Crore Velgaon GIS Substation Project

New Delhi, Tuesday, November 25: Ceigall India Ltd has strengthened its infrastructure portfolio after receiving a Letter of Intent (LOI) from REC Power Development and Consultancy Ltd. The LOI is for the development of a 400/220 kV Gas Insulated Substation (GIS) at Velgaon, Maharashtra, valued at ₹450 crore.

Share Price Snapshot

The share price of Ceigall India Ltd as of November 25, 2025, fell by 0.69%, closing at ₹240.50 compared to the previous close of ₹239.90. The stock opened at ₹245.05 and has been trading in a range of ₹235 to ₹247 during the day. The company’s market capitalization stands at ₹4,179.20 crore, with a P/E ratio of 16.20.

LOI Details And Scope Of Project

The Velgaon GIS Project will be executed on a tariff-based competitive bidding model, with an estimated EPC cost of ₹450 crore over a two-year implementation period. Ceigall India Ltd will also manage the operation and maintenance (O&M) of the substation for a 35-year term, with a guaranteed annual payment of ₹58.5 crore in the form of an annuity. This financial structure provides the company with predictable long-term revenue streams, enhancing portfolio stability by balancing its EPC-focused projects with consistent recurring cash flows.

Management Outlook

Ramneek Sehgal, Chairman and Managing Director of Ceigall India Ltd, stated that the Letter of Intent (LOI) highlights the company’s strong engineering capabilities. “This project demonstrates Ceigall’s active role in the development of India’s power transmission infrastructure. Additionally, the Velgaon GIS Substation will significantly enhance the reliability of the regional power grid while ensuring high standards of safety and operational performance,” he added.

Strategic Expansion

The LOI for the Velgaon GIS Substation is part of a larger wave of new projects that Ceigall expects to secure in FY 2025-26, spanning national highways, mobility corridors, and urban infrastructure. Alongside these initiatives, the company plans to expand its capacity for high-value power transmission projects, with the addition of a large-scale GIS substation further strengthening its engineering portfolio.

Ceigall India Limited is an Indian based company operating on a hybrid annuity model as an EPC (Engineering, Procurement and Construction) contractor in highways, flyovers, bridges, tunnels, expressways, railway overpasses and other major infrastructure development projects. Its shares are listed in the BSE and the NSE.

REF: https://nsearchives.nseindia.com/corporate/ceigall_25112025101106_Press_Release_25112025.pdf

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