Transrail Lighting IPO Details, Date, Price, Lot Size, GMP

Transrail Lighting, a leading T&D company, is preparing for its Initial Public Offering. As the company gets ready to hit the stock exchanges, this blog will provide you with an all-inclusive overview of the IPO, including key dates, financial performance, share allocation, business details, and more. Whether you are a retail investor, an institutional investor, or just interested in the IPO, this guide has got you covered.

What is Transrail Lighting?

Transrail Lighting is an EPC leader specializing in the power transmission and distribution industry.  The company has established a good name over the years for offering quality services in the sectors of power transmission infrastructure like manufacturing of lattice structures, conductors, and monopoles and providing EPC services for substations up to 765 kilovolts. It has completed over 200 projects across 58 countries and is, thus one of the leading global companies in the power transmission and distribution sector.

📢 Transrail Lighting Limited IPO

🗓️Date: 19 - 23  Dec,2024

🏷️Price Band : ₹410- ₹432

📦Market Lot: 34 Shares

💰Application Amount: ₹14,688

📏Size : ₹838.9 Cr Approx

👦Retail Portion: 35%

📃 Retail Form: 1,95,377

📄HNI Small Form: 1,993

📄HNI Big Form: 3,986

🏷️Face Value: ₹2

Transrail Lighting IPO Important Dates

The Transrail Lighting IPO is scheduled to open for subscription on December 19, 2024, and closes on December 23, 2024. However, the Anchor Book will open on December 18, 2024. That is when institutional investors can bid into the book in advance. The listing date for the IPO will be December 27, 2024, when shares of the company will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Transrail Lighting IPO Details: Fresh Issue and Offer for Sale

Transrail Lighting's IPO has two main components, namely, the Fresh Issue of Shares and the Offer for Sale (OFS).

Fresh Issue of Shares

The company is raising ₹400 crore through the issue of new equity shares. The proceeds will be used for working capital requirements, capital expenditures, and general corporate purposes.

An offer for sale was also announced by the company, Ajanma Holdings' promoters, who will sell off 1.01 crore equity shares via this issue through an OFS which in fact lowers down the promoters' stake within that organization.

The size of the IPO will be around ₹892 crore in aggregate. The price is supposed to be the upper band, which has been put at ₹432 per share amount through which the company has actually raised funds from pre-IPO placement.

Share Allocations for Transrail Lighting IPO

Shares from Transrail Lighting IPO would be distributed as follows:

Qualified Institutional Buyers (QIBs): 50% of the net issue would be reserved for QIBs. It would cover institutional investors like mutual funds, insurance companies, and pension funds.

Non-Institutional Investors (NIIs): 15% of the net issue would be reserved for NIIs. This includes HNIs and other large investors.

Retail Investors: 35% of the net issue would be reserved for retail investors so that the smaller investors would get a chance to invest in the IPO.

Special Reserve for Employees: ₹19 crores worth of shares have been kept for the company's employees. They too can invest in the IPO at a preferential rate.

Additionally, there will be a special allocation of shares worth ₹19 crore reserved for the company’s employees, enabling them to participate in the IPO at a preferential rate.

Promoter and Shareholding Structure

Prior to the IPO, promoters of Transrail Lighting, Ajanma Holdings, held a substantial 84.51% stake in the company, while the remaining 15.49% is held by public shareholders, including institutional investors such as Asiana Alternative Investment Fund, Canara Bank, and Volrado Venture Partners Fund.

The IPO has concluded, that the stake of the promoters will decline on account of the Offer for Sale, and therefore, the company may be opened up to wider public participation. It might, therefore, result in an alteration in the ownership pattern of the company, with more and more influence going to public shareholders.

Use of Proceeds from the Fresh Issue

The net proceeds of the fresh issue will be utilized as follows:

Working Capital Increment: Some of the amount will be applied to augment working capital of the company, as it will be essential to maintain continuous operations and also to cope with growth.

Capital Expenditure: The company intends to employ the fresh issue proceeds towards capital expenditures, which comprise upgrading infrastructure and enhancing manufacturing and EPC capacities.

General Corporate Purposes: A portion of the proceeds will be used for general corporate purposes, giving the company flexibility for future growth initiatives.

Business and Operations of Transrail Lighting

The key operating sector for Transrail Lighting remains to be power transmission and distribution. Lattice structures, conductors, and monopoles form the backbone of these sectors, which are major in building and maintaining the transmission and distribution lines. Apart from that, it provides EPC services in sub-stations up to 765 kilovolts and stands strong in the T&D space.

Having a diversified business model, Transrail also diversifies in civil construction, poles and lighting, and even railways. Its far-ranging operations have enabled the company to complete over 200 projects across 58 countries with a total of 34,654 circuit kilometers of transmission lines and 30,000 circuit kilometers of distribution lines constructed.

As of June 2024, it boasts an order book at ₹10,213 crore wherein significant revenue is expected to come through during the next year for all the ongoing projects. With such an order book, a steady inflow of income in terms of future growth was expected from Transrail Lighting.

Financial Performance of Transrail Lighting

Transrail Lighting has been able to show consistent growth in the financial performance of the company over the last few years. In FY 2024, the company has reported a net profit of ₹233.2 crore as against the profit of ₹107.6 crore in FY 2023. The revenue of the company has also grown significantly; it increased by 29.3% from ₹3,152.2 crore in FY 2023 to ₹4,076.5 crore in FY 2024.

Transrail reported a net profit of ₹51.7 crore on revenues of ₹915.8 crore for the first quarter of FY 2025, which demonstrates the strength of the operational performance of the company.

Why invest in Transrail Lighting IPO?

There are a number of reasons why investors may be interested in investing in the IPO of Transrail Lighting:

• Good Industry Standing: Transrail Lighting occupies leadership space within the power T&D area, with over 200 projects completed in as many as 58 countries across the world. There are strong market positions there because of its extensive existence.
• Strong Financials: Consolidations have been witnessed during all these years in its turnover along with profits. Strong and large order book that lies on ₹10,213 cr. ensures a long steady cash revenue stream.
• Strong Market Position: Transrail Lighting is one of the most dominant players in the power T&D space with over 200 completed projects across 58 countries. This wide presence in the market makes it competitive in the industry.
• Robust Financials: The company has maintained a growth trend of revenue and profit. Moreover, its order book, at ₹10,213 crore, gives the company stability for future revenue.
• Growth Potential: Transrail Lighting is concentrating on increasing its capacity in power infrastructure projects including railways and civil construction which could provide growth in the future.

The Transrail Lighting IPO provides an exciting investment opportunity in the growing power transmission and distribution sector. Having an excellent market position, solid financial performance, and an extensive order book, the company is well-positioned to see growth in the future. In all aspects of business, this firm, Transrail Lighting, stands primed for the future. A new IPO, open both for retail and institutional investors, represents such an opportunity.

Stay tuned to IPO Ji for the latest updates on the Transrail Lighting IPO and other upcoming offerings!