Transrail Lighting IPO to Open for Subscription on December 19

Transrail Lighting, a Mumbai-based engineering, procurement, and construction (EPC) company, is set to launch its initial public offering (IPO) on December 19, with subscriptions closing on December 23. The anchor book will open a day earlier, on December 18. The IPO comprises a fresh issue of equity shares worth ₹400 crore and an offer-for-sale of 1.01 crore equity shares by promoter Ajanma Holdings. Promoters currently hold 84.51% of the company, with the remaining 15.49% owned by public shareholders, including Asiana Alternative Investment Fund and Canara Bank.

Reserved Allocations & Pricing

The company has reserved ₹19 crore worth of shares for employees. From the net issue, 50% is allocated for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors. The IPO’s total size is estimated at ₹892 crore, assuming the upper price band aligns with the pre-IPO placement price of ₹484 per share.

Proceeds from the fresh issue will be directed toward incremental working capital requirements, capital expenditures, and general corporate purposes.

Pre-IPO Fundraising

Ahead of the IPO, Transrail Lighting raised ₹50 crore through a pre-IPO placement at ₹484 per share. Investors included Volrado Venture Partners Fund IV Gamma, Shyamsundar B Asawa, Saurabh and Divyam Sanjay Agrawal.

Business Overview & Financial Performance

Transrail Lighting specialises in power transmission and distribution, substations, and EPC projects. The company has completed over 200 projects in 58 countries, covering 34,654 circuit kilometres of transmission lines and 30,000 CKM of distribution lines. In FY24, Transrail’s revenue rose 29.3% year-on-year to ₹4,076.5 crore, with net profit doubling to ₹233.2 crore. Its order book stood at ₹10,213 crore as of June 2024.

Listing & Book Managers

The company is scheduled to list on the NSE and BSE on December 27. The IPO is being managed by Inga Ventures, Axis Capital, HDFC Bank, and IDBI Capital Markets & Securities.

All in all, with the order book and diversified business, Transrail Lighting’s upcoming IPO is poised to attract interest from various investor categories.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.