Transrail Lighting Limited, a dynamic engineering powerhouse specializing in power transmission and distribution, is set to make its market debut through an ambitious initial public offering (IPO) valued at ₹838.91 crores. Investors can participate in this exciting opportunity from December 19 to December 23, 2024, with a compelling offering that combines a fresh issue of 0.93 crore shares worth ₹400 crores and an offer for sale of 1.02 crore shares valued at ₹438.91 crores.
The IPO presents an attractive entry point for investors, with a carefully structured price band of ₹410 to ₹432 per share and a convenient lot size of 34 shares. For retail investors, this translates to a minimum investment of ₹14,688, offering an accessible gateway to participate in the company's growth potential. The share allotment is expected to be completed on December 24, 2024, with anticipated listing on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on December 27, 2024. This is your opportunity to be part of a promising engineering enterprise poised for market expansion and potential future growth.
Transrail Lighting IPO is a fundraise worth ₹838.91 crores comprising fresh issue of 0.93 crore shares and offer for sale of 1.02 crore shares. The IPO will be available for subscription from December 19, 2024, to December 23, 2024, providing an opportunity for investors looking to gain a stake in the energy infrastructure sector.
| Transrail Lighting IPO Date | December 19, 2024 - December 23, 2024 |
| Price Band | ₹410 to ₹432 per share |
| Face Value | ₹2 per share |
| Lot Size | 34 shares |
| Issue Type | Book-built issue |
| Fresh Issue | 92,59,259 shares of ₹2 per share, amounting to ₹400 crores |
| Offer for Sale | 1,01,60,000 shares of ₹2 per share, amounting to ₹438.91 crores |
| Total Issue Size | 1,94,19,259 shares of ₹2 per share, amounting to ₹838.91 crores |
| Listing at | BSE, NSE |
| Share Holding Post Issue | 13,42,56,026 |
| Share Holding Pre Issue | 12,49,96,767 |
The Transrail Lighting IPO opens for subscription on December 19, 2024, and closes on December 23, 2024, with allotment slated for December 24, 2024.
| IPO Open Date | December 19, 2024 (Thursday) |
| IPO Close Date | December 23, 2024 (Monday) |
| Basis of Allotment | December 24, 2024 (Tuesday) |
| Initiation of Refunds | December 26, 2024 (Thursday) |
| Credit of Shares to Demat Account | December 26, 2024 (Thursday) |
| Listing Date on Exchanges | December 27, 2024 (Friday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 23, 2024 (Monday) |
Transrail Lighting Limited, established in February 2008, is a versatile engineering and construction company specializing in power transmission, distribution, and infrastructure solutions. The company offers a comprehensive range of services, including supply, engineering, procurement, and construction of transmission and distribution lines, EPC services for civil construction, manufacturing of lattice structures, conductors, and monopoles, and railway services encompassing overhead electrification, signaling, telecommunication, and track linking. With a robust international footprint, the company has successfully completed over 200 power transmission and distribution projects across 58 countries, including Bangladesh, Kenya, Tanzania, Nigeria, and several European nations.
The company's operational capabilities are impressive, with significant achievements as of June 30, 2024. Transrail has completed EPC projects covering 34,654 circuit kilometers of transmission lines and 30,000 circuit kilometers of distribution lines both domestically and internationally. Operating from four manufacturing units located in Vadodara (Gujarat), Deoli (Maharashtra), and Silvassa (Dadra and Nagar Haveli), the company has supplied 1.3 million metric tons of towers, 194,534 kilometers of conductors, and 458,705 poles. With a dedicated team of 114 employees in design and engineering, Transrail Lighting Limited demonstrates a strong capacity for complex infrastructure and energy projects across global markets.
Transrail Lighting Limited's IPO proceeds are strategically designed to support the company's growth and operational expansion. The funds will be primarily allocated to three key areas: addressing incremental working capital requirements to maintain smooth business operations, investing in capital expenditure to enhance the company's infrastructure and technological capabilities, and providing flexibility for general corporate purposes. This balanced approach demonstrates the company's commitment to sustainable growth, operational efficiency, and strategic financial management.
The Transrail Lighting IPO showcases a healthy market capitalization of ₹5,799.86 crores as on March 31, 2024. Key performance indicators reflect the company's financial health, with a Return on Equity (RoE) of 24.41%, Return on Capital Employed (RoCE) of 24.33%, and Debt-to-Equity ratio of 0.56.
The Return on Net Worth (RoNW) stands at 21.68%, while the Price-to-Book Value (P/BV) is seen at 4.70. The PAT Margin is 5.65 and the Price-to-book value is 4.70. On an annual basis, the company's Profit After Tax (PAT) grew by 116.8% while the revenue increased by 30.2% in the financial year ending on March 31, 2024. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹18.66 while it is ₹15.42 post-IPO.
| Period Ended | June 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 929.70 | 4,130.00 | 3,172.03 | 2,357.20 |
| Assets | 4,836.17 | 4,620.61 | 3,445.49 | 2,841.87 |
| Net Worth | 1,140.65 | 1,075.87 | 709.15 | 599.32 |
| Profit After Tax | 51.74 | 233.21 | 107.57 | 64.71 |
| Total Borrowing | 603.43 | 643.19 | 604.92 | 469.12 |
Amount in ₹ crores
Transrail Lighting Limited demonstrates remarkable strength through its robust and diversified operational model. With a proven track record of completing over 200 power transmission projects across 58 countries, the company has established itself as a formidable player in the power transmission and distribution sector. Its strategic manufacturing facilities in four locations across Gujarat, Maharashtra, and Silvassa enable backward integration and reduce dependence on third-party suppliers. The company's integrated approach to Engineering, Procurement, and Construction (EPC) is supported by a skilled team of 114 design professionals equipped with cutting-edge software, ensuring efficient project delivery and high safety standards.
The company's financial performance underscores its operational excellence. With a robust revenue of ₹4,130.00 crore in FY24, representing a 30.2% CAGR since FY22, and a significant profit after tax of ₹233.21 crore, Transrail Lighting Limited has demonstrated consistent growth. Its diverse revenue streams spanning power transmission, railway electrification, and lighting segments, coupled with a conservative debt-to-equity ratio of 0.56, highlight its financial stability. The company is certified in quality management, environmental management, and safety systems, which enhances its market reputation. Its global presence, technical expertise, and ability to execute large-scale projects position it as a trusted partner in critical infrastructure development.
Transrail Lighting Limited faces several significant challenges that could potentially impact its future performance. The company heavily relies on its order book for revenue projections, with projects that may be subject to cancellation, modification, or delays beyond its control. Long-term project management and turnkey contracts, typically spanning 3 to 5 years, expose the company to risks of time and cost overruns due to factors like price escalation, funding constraints, and adverse weather conditions. A substantial portion of its revenue depends on tenders from government authorities and public sector undertakings, making the company vulnerable to changes in government policies and budget allocations.
Additional operational risks include sensitivity to macroeconomic conditions, regulatory complexities across multiple jurisdictions, and intense market competition. The company faces challenges related to commodity price volatility, particularly for core inputs like steel, aluminum, and zinc, which can impact profitability. Foreign currency exposures and interest rate fluctuations present further financial risks. Safety and operational hazards inherent in handling hazardous materials and complex equipment pose potential risks of accidents, environmental damage, and operational disruptions. The company's dependency on large projects and the potential for market-related financial variables to affect its performance create additional layers of uncertainty in its business model.
The Transrail Lighting Limited IPO offers an exciting opportunity for investors to enter the energy infrastructure sector at its early public stage. While the prospect of early investment is compelling, prudent financial decision-making requires careful evaluation of the company's fundamentals, market positioning, and growth potential. Prospective investors should conduct thorough research to ensure this opportunity aligns with their personal financial objectives and risk tolerance, transforming a promising investment prospect into a strategic financial decision.
What is the Transrail Lighting Limited IPO?
The Transrail Lighting Limited IPO is a main-board offering consisting of a fresh issue of 0.93 equity shares and an offer for sale of 1.02 crore shares with a face value of ₹2, aiming to raise a total of ₹838.91 crores. The share price is set between ₹410 and ₹432, with a minimum order quantity of 34 shares. This IPO will be open for subscription from December 19, 2024, to December 23, 2024. Link Intime India Private Limited is the registrar while Inga Ventures Private Limited, Axis Capital Limited, HDFC Bank Limited, IDBI Capital Market Services Limited are the book-running lead managers.
When will the Transrail Lighting Limited IPO open?
The Transrail Lighting Limited IPO will open for subscription on December 19, 2024, and will close on December 23, 2024.
When is the Transrail Lighting Limited IPO listing date?
The tentative listing date for the Transrail Lighting Limited IPO is Friday, December 27, 2024.
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