Transrail Lighting IPO GMP Today: The Transrail Lighting Limited Initial Public Offering (IPO) has been the talk of the town, and investors are eagerly tracking its Grey Market Premium (GMP). In this detailed article, we will cover all the critical information about the Transrail Lighting IPO, including its date, price band, lot size, issue size, listing date, current GMP, expected listing price, financials, and the company’s strengths.
IPO Details
Transrail Lighting IPO GMP Today: Here are the key details about the Transrail Lighting IPO:
IPO Opening and Closing Dates: The IPO will open for subscription on 19th December 2024 and close on 23rd December 2024.
Price Band: The price band has been set at ₹410 to ₹432 per equity share.
Lot Size: A minimum of 34 shares per lot, and retail investors can bid for up to 13 lots.
Total Issue Size:
Fresh Issue: ₹400 crore.
Offer for Sale (OFS): ₹438.91 crore.
Total Issue Size: ₹838.91 crore.
Listing Date: The shares are expected to list on 27th December 2024 on both NSE and BSE.
Grey Market Premium (GMP) Today
Transrail Lighting IPO GMP Today: As of 20th December 2024, the GMP for Transrail Lighting IPO is ₹185 per share. The GMP is an important indicator for investors as it reflects the demand for the shares in the unofficial market before listing.
Expected Listing Price:
Transrail Lighting IPO GMP Today: Based on the upper price band of ₹432 and the current GMP of ₹185, the expected listing price is ₹617 per share.
This indicates a potential premium of 42.8% over the issue price, making it an attractive prospect for short-term gains.
Company Financials
Transrail Lighting IPO GMP Today: A strong financial track record adds to the appeal of Transrail Lighting’s IPO. Here is a snapshot of its recent financial performance:
Revenue Growth:
FY23: ₹3,086.14 crore.
FY24: ₹4,009.24 crore, reflecting a growth of approximately 30%.
Net Profit:
FY23: ₹107.57 crore.
FY24: ₹233.21 crore, indicating a sharp rise in profitability.
EBITDA Margin: Consistently maintained at around 12%, showcasing operational efficiency.
Debt-to-Equity Ratio: At 0.41, the company’s debt levels are well-managed.
Return on Net Worth (RoNW):
FY23: 15.17%.
FY24: 9.17%, reflecting a minor decline due to increased equity.
Strengths of Transrail Lighting
1. Established Market Leader:
With over two decades of experience, Transrail Lighting is a leader in the power transmission and distribution infrastructure sector.
2. Diverse Product Portfolio:
The company manufactures a wide range of products, including transmission towers, monopoles, substation structures, and lighting masts, catering to diverse customer needs.
3. Robust Order Book:
Transrail Lighting has a strong order book worth ₹5,000 crore as of September 2024, ensuring revenue visibility for the coming years.
4. Global Presence:
The company operates in over 20 countries, showcasing its capability to meet international standards and expanding its revenue base.
5. Backward Integration:
Transrail has integrated manufacturing facilities, allowing it to control costs and maintain quality standards.
6. Focus on Sustainability:
The company’s emphasis on green initiatives and sustainable practices adds to its long-term growth potential.
Risks and Concerns
1. Dependence on Government Projects:
A significant portion of the company’s revenue comes from government contracts, which are subject to delays and policy changes.
2. Raw Material Price Volatility:
Fluctuations in steel and other raw material prices can impact margins.
3. Competitive Market:
The power infrastructure industry is highly competitive, with multiple established players vying for market share.
Should You Subscribe?
Transrail Lighting IPO GMP Today: The decision to invest in Transrail Lighting IPO should depend on your financial goals and risk appetite. Here are some points to consider:
Short-Term Gains:
The positive GMP suggests the potential for strong listing gains.
Long-Term Potential:
The company’s solid fundamentals and growing market presence make it a good option for long-term investors.
Risks:
Be mindful of the challenges posed by market competition and raw material price fluctuations.