Transrail Lighting Ltd IPO is a significant development for the company as it goes public to raise funds. Being one of the major players in the power transmission and lighting solution industry, the company through the IPO intends to raise funds to support working capital requirements, capital expenditure, and other corporate purposes while providing an exit opportunity for existing investors.
What is the objective of Transrail Lighting Ltd IPO?
The primary objectives of the IPO are as follows.
- Funding incremental working capital requirements.
- Capital expenditure for expansion and modernization.
- General corporate purposes.
- To provide an exit opportunity to the existing investors through OFS.
Let’s get Company Overview
Transrail Lighting Ltd is an industry leader in power transmission and lighting solutions. The company offers products such as transmission towers, monopoles, and high-mast lighting structures. The company also has a robust manufacturing base and R&D facilities and has executed over 200 power transmission projects in over 30 countries.
Company History of Transrail Lighting Ltd IPO
Transrail Lighting Ltd, was established in the early 1990s, and has evolved from a domestic supplier to a global player in the power transmission business. The company has been constantly innovating and expanding, ensuring it becomes a trusted partner in the infrastructure development.
Ownership and Directors
Promoters and Stakeholders
- Ajanma Holdings Private Limited: 85% pre-IPO equity stake.
- Digambar Chunnilal Bagde: 1.25% equity stake, serving as Executive Chairman.
- Sanjay Kumar Verma: 0.04% equity stake, Promoter and Non-Executive Director.
Post-IPO Stake
- Promoters’ stake will dilute, post-listing.
| IPO Name | Transrail Lighting Ltd |
| Issue Type | Fresh Issue and Offer for Sale (OFS) |
| IPO Open Date | December 19, 2024 |
| IPO Close Date | December 23, 2024 |
| Price Band | |
| Lot Size | |
| Total Issue Size = ₹892 crore | Fresh Issue = ₹400 crore |
| OFS = 10,160,000 equity shares | |
| Listing Date | December 27, 2024 |
| Listing Exchanges | BSE and NSE |
The company has already managed to raise Rs 50 crore via pre-IPO placement, from Volrado Venture Partners Fund IV Gamma, Divyam Sanjay Agrawal , Saurabh Sanjay Agrawal and Shyamsundar B Asawa, at a price of Rs 484 per equity share. Hence the size of the fresh issue was reduced from the earlier amount of Rs 450 crore to Rs 400 crore.
Category Quotas
- Retail Individual Investors (RII): 35%
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
Financial Overview of Transrail Lighting Ltd IPO
Key Metrics
- Revenue: ₹4,009 crore (FY 2023-24)
- EBITDA: ₹468 crore
- Profit After Tax (PAT): ₹233 crore
Key Financial Ratios
- ROE: 21.68%
- ROCE: 24.33%
- Debt-to-Equity Ratio: 0.56
Sector & Industry Overview
Transrail operates in the power transmission and infrastructure sector, this sector is poised for significant growth due to:
- Government initiatives like ‘Power for All’ and renewable energy expansion.
- Increased investments in urbanization and electrification.
- Rising demand for reliable and sustainable energy infrastructure.
Growth Drivers
- A strong order book with increasing global presence.
- Investment in advanced manufacturing technologies.
- Strategic partnerships to enhance service offerings.
Risk Factors
- Market Volatility: Dependence on government projects may make the company susceptible to economic cycles.
- Debt: While manageable, debt may place significant constraints on the group when business is slow.
- Raw Material Prices: Fluctuations in steel and aluminum costs could impact profitability.
How to Check Allotment Status?
Investors can check their allotment status through the following portals.
- Registrar Website: Visit Link Intime India Pvt Ltd’s portal and enter your PAN or application number.
- Stock Exchange: Check allotment details on the BSE/NSE websites.
Grey Market Premium (GMP) and Kostak Rate
- GMP: ₹[To be updated]
- Kostak Rate: ₹[To be updated]
(Note: Grey market premiums are indicative and not officially published).
Conclusion
Transrail Lighting Ltd’s issue offers investors an opportunity to invest in a business with strong financials, a solid industry position, and clear growth strategies. However, potential investors should read the company’s RHP, and then decide whether to invest in the IPO of the company based on their investment strategy and financial goal.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.