Transrail Lighting IPO: Transrail Lighting Limited, a prominent player in the engineering, procurement, and construction (EPC) sector, specializing in power transmission and distribution, has announced its Initial Public Offering (IPO). The IPO is scheduled to open on December 19, 2024, and close on December 23, 2024. The company aims to raise approximately ₹838.91 crore through this public issue.
IPO Details:
Issue Size: The total issue comprises 1,94,19,259 equity shares, aggregating up to ₹838.91 crore. This includes a fresh issue of 92,59,259 shares worth ₹400 crore and an Offer for Sale (OFS) of 1,01,60,000 shares amounting to ₹438.91 crore.
Price Band: The price band for the IPO is set between ₹410 to ₹432 per equity share.
Face Value: Each equity share has a face value of ₹2.
Lot Size: Investors can bid for a minimum of 34 shares and in multiples thereof. The minimum investment amount for retail investors is ₹14,688.
Listing: The shares are proposed to be listed on both BSE and NSE, with the tentative listing date set for December 27, 2024.
Company Overview:
Transrail Lighting IPO: Transrail Lighting Limited has over four decades of experience in the EPC sector, focusing primarily on power transmission and distribution. The company has successfully completed more than 200 projects across 58 countries, with a significant presence in Asia and Africa. Its operations encompass transmission lines, substations, and distribution networks, showcasing strong execution capabilities in the power sector.
Financial Performance:
Transrail Lighting IPO: The company’s financial trajectory has been impressive over the past few years:
Revenue: Increased from ₹2,284.1 crore in FY22 to ₹4,009.2 crore in FY24, indicating robust growth.
Profit After Tax (PAT): Grew from ₹64.7 crore in FY22 to ₹233.2 crore in FY24, reflecting a significant enhancement in profitability.
EBITDA: Improved from ₹205.6 crore in FY22 to ₹293.9 crore in FY23, showcasing operational efficiency.
Objectives of the IPO:
Transrail Lighting IPO: The net proceeds from the fresh issue are intended to be utilized for the following purposes:
1. Debt Repayment: A portion of the funds will be allocated towards repaying certain borrowings of the company, thereby strengthening the balance sheet.
2. Working Capital Requirements: To finance the company’s working capital needs, supporting its operational and project execution capabilities.
3. General Corporate Purposes: Funds will also be used for general corporate activities, enabling strategic initiatives and growth opportunities.
Grey Market Premium (GMP):
Transrail Lighting IPO: As of December 20, 2024, the shares of Transrail Lighting are commanding a premium of ₹135 in the grey market. This suggests a potential listing price of approximately ₹567 per share, indicating strong investor interest and positive market sentiment towards the IPO.
Subscription Status:
Transrail Lighting IPO: On the second day of bidding, December 20, 2024, the IPO was subscribed 4.18 times, reflecting robust demand across investor categories. The retail portion was subscribed 2.87 times, non-institutional investors (NII) 2.10 times, and qualified institutional buyers (QIB) 0.78 times.
Key Dates:
IPO Open Date: December 19, 2024
IPO Close Date: December 23, 2024
Basis of Allotment Finalization: December 24, 2024
Initiation of Refunds: December 26, 2024
Credit of Shares to Demat Accounts: December 26, 2024
Listing Date: December 27, 2024
Risks and Considerations:
Transrail Lighting IPO: Potential investors should be aware of certain risks associated with the company:
Dependence on Government Projects: A significant portion of the company’s revenue is derived from government contracts, which may be subject to policy changes and budget allocations.
Competitive Industry: The EPC sector is highly competitive, with numerous players vying for market share, potentially impacting margins.
Working Capital Intensive Operations: The nature of the business requires substantial working capital, and any disruptions can affect project execution and financial health.